Does a Non Profit Organization need a Tax ID (EIN)?

A non profit organization considered to be tax-exempt for the purposes of federal taxes. But that doesn’t mean that the non profit organization doesn’t need a tax ID. The organization is still going to have to file tax reports, it’s just not going to have to pay taxes on its own. Further, the non profit organization may need to do other things with its tax ID, such as hire employees, and open bank accounts.

In many aspects, the non profit organization is still going to operate like a business. To open lines of credit, rent property, and get licenses and permits, the non profit organization will need a tax ID. It may also need a tax ID to sign up for wholesale accounts, or other business-related accounts. It can get a tax ID online, through mail, through fax, or over the phone. Usually, non profit organizations will get their tax ID at the same time the organization is formed.


Written by Maurice Mallory