A taxexempt organization is one which has been recognized by the Internal Revenue Service to not be liable for federal income tax. But taxexempt status is not synonymous with nonprofit.

An entity can be formed under state statute as a nonprofit, and that organization is not required to file for IRS tax exempt status. On the other hand, all taxexempt organizations are nonprofits. This is a requirement for applying to the IRS for tax exempt status.

For more, read the articles on our website:

https://lodestar.asu.edu/asknonprofi...
https://lodestar.asu.edu/asknonprofi...

Do you have questions about starting, governing, managing or operating a nonprofit organization? Ask the Nonprofit Specialists is a growing repository of information compiled by the ASU Lodestar Center for Philanthropy and Nonprofit Innovation, based on common questions the Center receives about starting and running a nonprofit organization.

Read more and submit your questions: https://lodestar.asu.edu/asknonprofi...

Written and hosted by: Athena Kehoe
Edited by: Pravalika Samala

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