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Q. What Is an EIN?

From Joanne Fritz,
Your Guide to Nonprofit Charitable Orgs.
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Our organization has a Tax ID number from the IRS. Does this make us a “tax exempt” nonprofit organization? Are we considered to be registered with the IRS as such, given that we have a Tax ID number?
A. A tax ID number means that you are registered to do business. All organizations, for profit and nonprofit, have tax id numbers (also called an Employer Identification Number or EIN).

You also may be registered with your state as a nonprofit but not with the IRS.

If you do not need to solicit tax-exempt contributions or receive grants from foundations, you don't really need to be a registered nonprofit.

Check with your state (usually the secretary of state's office) to find out your status. If you are incorporated as a nonprofit there, then check with the IRS to see if your organization is already registered.

If not, you could then apply to the IRS for 501(c)(3) status if you think it would be advantageous. Consult legal counsel and a CPA to see what would work best for you.

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