IRS.gov regulations for Non-profit organizations
Organizations that meet the requirements of Internal Revenue Code section 501(c)(3) are exempt from federal income tax as charitable organizations . In addition, contributions made to charitable organizations by individuals and corporations are deductible under Code section 170.
Every exempt charitable organization is classified as either a public charity or a private foundation .
Generally, organizations that are classified as public charities are those that (i) are churches, hospitals, qualified medical research organizations affiliated with hospitals, schools, colleges and universities, (ii) have an active program of fundraising and receive contributions from many sources, including the general public, governmental agencies, corporations, private foundations or other public charities, (iii) receive income from the conduct of activities in furtherance of the organization’s exempt purposes, or (iv) actively function in a supporting relationship to one or more existing public charities. Private foundations, in contrast, typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs.
If you think your charitable organization is or will be a public charity, click Life Cycle of a Public Charity to view a chart showing the life cycle of a public charity. This chart contains links to helpful information about points of intersection between your organization and the IRS, including access to explanatory information and forms that your organization may need to file with the IRS.
If you think your charitable organization is or will be a private foundation, click Life Cycle of a Private
Foundation to view a chart showing the life cycle of a private foundation. This chart contains links to helpful information about points of intersection between your organization and the IRS, including access to explanatory information and forms that your organization may need to file with the IRS.
The questions that follow will help you determine if an organization is eligible to apply for recognition of exemption from federal income taxation under section 501(a) of the Internal Revenue Code and, if so, how to proceed.
If you want to see an in-depth discussion of exemption requirements under section 501(a) of the Code, rather than going through a step-by-step analysis of an organization's eligibility to apply for recognition of exemption from federal income taxation, see Types of Exempt Organizations or IRS Publication 557 , Tax Exempt Status For Your Organization . In addition, Publication 4220 , Applying for 501(c)(3) Tax-Exempt Status , is designed to help prospective charities apply for tax exemption under the tax law.
First Things First. Does The Organization Have an Appropriate Legal Form?
For the Internal Revenue Service (the IRS) to recognize an organization's exemption, the organization must be organized as a trust , a corporation , or an association .
Is the organization a trust, corporation, or association?

During its existence, a public charity has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status, to filing the required annual information returns, to making changes in its mission and purpose. The IRS provides information, explanations, guides, forms and publications on all of these subjects – they are available through this IRS Web site. The illustration below provides an easy-touse way of linking to the documents most charities will need as they proceed though the phases of their
“life cycle." You can also view a graphical depiction of the chart, with links to our website.
Starting Out
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Organizing Documents o o
Required Provisions
Sample Organizing Documents
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Governance and related topics
Bylaws o
State law requirements
 Employer Identification Number
 o o
Application Form
Online EIN Application
Charitable Solicitation
 o o
Initial State Registration
Periodic State Reporting o
State Charity Offices
Help from the IRS
Applying to IRS
 Requirements for Exemption
 Application Forms o
Exemption Application
 o o o
 Group exemption
User Fee
Power of Attorney
Disclosure of Applications
IRS Processing o
While You Wait
 o
Rulings and Determination Letters
Help from the IRS o
Application Process Step by Step o o
Customer Account Services
Publication 4220 , Applying for 501(c)(3) Tax-Exempt Status

Starting Out o
Publication 557 , Tax-Exempt Status for Your Organization
Required Filings
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Annual Exempt Organization Return o
Requirements for Filing e-File for Exempt Organizations o e-Postcard for Small Exempt Organizations
 Unrelated Business Income Tax o
Requirements for Filing
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Form 990-T o o
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Form 990-T instructions
Form 990-W
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Estimated Tax
Exceptions and Exclusions
Publication 598 , Tax on Unrelated Business Income for Exempt
Organizations
 Help from the IRS o
Customer Account Services o o
Publication 4221-PC , Compliance Guide for 501(c)(3) Public Charities
Publication 557 , Tax-Exempt Status for Your Organization
Ongoing Compliance
 Jeopardizing Exemption o
Inurement/Private Benefit o o
Intermediate Sanctions
Lobbying/Political Activity
 o
Not Filing Annual Return or Notice
Employment Taxes o o o o
Requirement to Pay
Exceptions and Exclusions
Worker Classification
Forms and Publications
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Retirement Plan Compliance
Substantiation and Disclosure o
Charitable Contributions
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Publication 1771, Charitable Contributions Substantiation and
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Disclosure Requirements
Written acknowledgments
Quid pro quo contributions
Charity auctions

Starting Out
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Noncash Contributions
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Donor ( Form 8283 )
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Donee ( Form 8282 )
 Publication 561 , Determining the Value of Donated Property
Public Disclosure Requirements
Help from the IRS o
Customer Account Services o o
Publication 4221-PC , Compliance Guide for 501(c)(3) Public Charities
Publication 557 , Tax-Exempt Status for Your Organization
Significant Events
 Reporting Changes to IRS
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 o
Termination of Exempt Organization
Private Letter Rulings and Determination Letters
Audits of Exempt Organizations o
Potential Examination Consequences o o
Examination Procedures
Power of Attorney
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Termination of an Exempt Organization
Help from the IRS