What is Nonprofit EIN & How to Get EIN for a 501(c)(3) Organization

Nonprofit Employer Identification Number (EIN) is a Federal nine-digit tax ID number that IRS assigns to nonprofits, charities, organizations, and businesses in the following format: XX-XXXXXXX. EIN is used to identify the tax accounts of employers and certain others who have no employees.

Nonprofit organizations and charities are required to have their EIN prior to starting a nonprofit organization and filing for tax exemption. It's also a required document from all banks to open a nonprofit bank account.

The IRS uses the EIN tax ID number to identify taxpayers that are required to file various business tax returns.

Do Nonprofits Need an EIN?

In the case of charities, tax-exempt nonprofit organizations are required to file Information Return form 990, most commonly known as the Form 990 at the end of each year and the EIN is used for this purpose as well.

EIN is used by employers period, no matter if your business is a sole proprietor, corporation, partnership, nonprofit organization, trust, estates of decedents,  or even a government agency. Certain individuals, and other business entities may apply for Employer Identification as well. You should use your Nonprofit EIN on all the forms and paperwork that you send to the IRS.

How and Where to Get an EIN?

The second step in starting a nonprofit organization after Nonprofit Incorporation is to apply for EIN from the IRS. Whether you're going to have employees in your nonprofit organization or not, you need to apply for the Employer Identification Number. The EIN is like a social security number for your non-profit, as the IRS will identify your organization with this number from now on. The good news is that it's a super simple process, FREE, and has one of the quickest turnaround times. You can apply for the Nonprofit EIN from the IRS here.

Do NOT Pay for Your Nonprofit EIN

EIN for nonprofit organizations is free, and it only takes a few minutes to get. Don't fall for the so called one-stop Incorporation Service sites that want to charge you for their service. Just use the link to the IRS above and apply for your EIN yourself and save a few hundred dollars.

The information you'll need are the business name, Mission of the organization and personal information. The application is very simple and you should have your EIN receipt in PDF format at the end of the process. Keep this PDF receipt, it's required for sending along with your 501c3 501(c)(3) application later to the IRS, and for filing your Information Return 990.

You will receive a letter and an instant email with a PDF attachment from the IRS informing you of your EIN which will look like this one:

Where to Use Your Nonprofit EIN in the IRS Application

Once the IRS issues your EIN, you start using it immediately in the exemption process. It's the tax ID that identifies your organization on every federal form, including the Form 1023.

On the exemption application, the EIN belongs in the basic information section and on any continuation sheets or attachments that the form itself asks for. If you're attaching extra pages, it's good practice to put the organization's name and EIN in the header on each page. That's housekeeping, not magic, but it keeps your file traceable inside a large agency.

 

The EIN is tied to the entity that filed the articles of incorporation. The name on the articles, the tax ID on the exemption application, and the information in your narrative description all have to describe the same organization. If the names don't match, or if the EIN belongs to a different entity, that's when you invite questions and delays.

You will use the same employer identification number later on the Form 990 information return. The IRS uses it to connect your annual filings back to the original determination file. When they compare what you told them in the exemption application to the activity that shows up on the returns, they use that number as the key.

The short version: the EIN goes anywhere the IRS asks for a tax ID on the exemption forms and later on your annual returns. It's the constant that ties your filings together.

How Your EIN Connects Your Governance Documents and Operations

Outside the Form 1023, the EIN is the identifier that follows your core documents and day-to-day operations.

1. When you assemble the exemption package, you attach your organizing documents. That usually means your articles of incorporation, your nonprofit bylaws, and your conflict of interest policy. The IRS does not require you to reprint the EIN inside those texts, but you should add it in a header or cover sheet so the governing documents are clearly tied to the same entity and tax ID that appear on the application.
2. You use the EIN again when you open a nonprofit bank account. Banks won't create an account for a corporation or association without a tax ID number. The articles show that the organization exists under state law. The EIN shows that it exists in the federal system. Together they form the minimum packet a banker wants to see.
3. The number shows up in other places as the nonprofit matures. You give it to payroll providers, grantmakers, and vendors who need to report payments. You use it when you register with state agencies for charitable solicitation or employment accounts. You put it on fiscal reports that tie back to your financial policies and your broader system of nonprofit financial management.

So you Got Your Nonprofit EIN, Now What?

If you haven't read the guide on how to start a nonprofit 501c3 501(c)(3) organization yet, you should read it first. Once you have the Employer Identification Number, you now have all the necessary  information and documents to start your form 1023 application. Let's recap; by now you should have your Articles of Incorporation, Bylaws, Conflict of Interest Policy, and EIN. The next step is to start on the Part I of the application for tax exemption.