Does every nonprofit have to be tax exempt?

Question

I am the co-founder of a local nonprofit. Although we are registered with the state, have a tax ID number and have filed (approved) articles of incorporation we are not tax exempt. This organization is a temporary one... plan on serving an immediate need and then we will close w/in a year. Do we still have to file papers for tax exemption?

Answer 1

No, there are many non-profits that aren't tax-exempt. Not all non-profits even meet the rules to be approved as tax-exempt.

Answer 2

No.

Tax-exempt status is a "privilege".

If your "organization" is a religious organization, you didn't need the non-profit status to eliminate your taxes. But now that you are a "non-profit organization", you must have the tax exemption granted by your new Lord, the State.

Before you became a non-profit, your religious group was tax immune. Now you're a non-prophet entity with a new ten commandments to obey.

I. Thou shalt not attempt to influence legislation either directly or indirectly.
II. Thou shalt not talk to legislators about legislation
III. Thou shalt not engage in activities related to non legislative decisions, such as opposing or supporting the issuance of regulations
IV. Thou shalt not make available the results of nonpartisan studies
V. Thou shalt not respond to requests to testify before legislative committees
VI. Thou shalt not support or oppose political candidates
VII. Thou shalt not engage in partisan political campaign activities
VIII. Thou shalt not distribute partisan "voter education" information
IX. Thou shalt not attempt to persuade the public one way or the other on candidates or issues
X. Thou shalt not allow groups or individuals to use your facilities and equipment to campaign for candidates

Answer 3

I assume you are not currently a charity.

If you qualify to be recognized as a charity by the IRS (Section 501), then you have to apply in order to be tax exempt. You are not required to make this application.

You can be a nonprofit and not a charity. This means in particular that donations given to your organization are not deductible to the donor.

Answer 4

Why shouldn't you be? You have to be tax exempt to accept donation that the giver can write off.