Nonprofit EIN: How to Get One and What It Is For
Free, from the IRS on Form SS-4, usually issued immediately online. You need it before a bank account and before your exemption application, and it is not the same thing as tax-exempt status, which people conflate constantly.
An employer identification number is the federal identifier for your organization. It is free, it takes minutes to obtain, and it is one of the first things you do after incorporating.
It is not tax-exempt status. That confusion causes real problems, so it is worth settling immediately: an EIN identifies you, and exemption is granted separately by the IRS on Form 1023 or 1023-EZ. Having an EIN says nothing about whether donations to you are deductible.
What you need it for
| Use | Required |
|---|---|
| Opening a bank account | Yes, always. Banks will not open a nonprofit account without one. |
| Applying for tax exemption | Yes. Form 1023 and 1023-EZ both ask for it. |
| Filing your annual return | Yes, on every 990 series form |
| Employing anyone | Yes, for payroll reporting |
| Completing a W-9 | Yes. This is the number that goes in Part I. |
| Grant applications | Almost always requested |
| Corporate matching gift programmes | Usually, to identify you |
| State registrations | Commonly required |
Note the first two rows together. You need an EIN to open a bank account, and you need a bank account before accepting donations, so this step gates almost everything else.
Getting one
Apply on Form SS-4. The online application is the fastest route and in most cases issues the number immediately at the end of the session.
Before you start, have ready: your organization’s exact legal name as filed with the state, the formation date, your state of incorporation, the mailing address, and the name and taxpayer identification number of the responsible party.
Two practical points about the online application. It must be completed in one session, since it times out after a period of inactivity, and it is available only during certain hours. Alternative routes exist by fax and post, and both take considerably longer.
It is free. Any site charging a fee to obtain an EIN is charging you for something the IRS provides at no cost.
The responsible party
The application asks for a responsible party: a natural person who controls or manages the organization, with their own taxpayer identification number. For most new nonprofits this is a founder, an officer or the board chair.
Two things follow that people do not expect. It must be an individual rather than an entity, and their personal identification number is given even though the EIN belongs to the organization.
And it must be kept current. When the person named leaves the organization, file Form 8822-B to change the responsible party. Organizations frequently have a responsible party on record who departed years ago, which becomes a problem when the IRS needs to contact someone about the account.
Common mistakes
| Mistake | Consequence |
|---|---|
| Applying before incorporating | The legal name may not match your articles, causing mismatches later |
| Using a trading name rather than the legal name | Name and TIN mismatches on W-9s and information returns |
| Applying more than once | Duplicate EINs, which then need resolving with the IRS |
| Paying a service for it | Money spent on something free |
| Assuming it grants exemption | Telling donors gifts are deductible when they are not yet |
| Never updating the responsible party | IRS correspondence going to someone who left |
The first row is worth planning around. Incorporate first, then apply for the EIN using the exact legal name on your filed articles. A mismatch between the two is the origin of most later administrative friction.
If you have lost it
The number itself is not confidential and there are several places to look before contacting the IRS.
Your IRS determination letter carries it. So does any Form 990 you have filed, and those are public, searchable free on ProPublica Nonprofit Explorer and confirmable on IRS Tax Exempt Organization Search. Your bank has it, as does any payroll provider, and it appears on any W-9 you have issued.
If none of those work, the IRS business and specialty tax line can provide it to an authorised person after verifying their identity.
One consequence of that sequence worth flagging: you can hold a bank account and receive money long before your exemption is recognised. That is legitimate, and it means an organization can be operating, banking and fundraising while its 501(c)(3) application is still pending. Be clear with donors about which stage you are at, because the account existing is not evidence of anything about deductibility.
Keeping the record current
An EIN is issued once and the information attached to it needs maintaining. Organizations rarely think about this until something breaks.
| What changed | What to file |
|---|---|
| Mailing address | Form 8822-B |
| Responsible party | Form 8822-B, when the named person leaves |
| Legal name | Amend with the state, then report on your next annual return |
| Structure, for example a merger | Take advice. A new EIN is sometimes required. |
The responsible party row is the one most often neglected. It is common to find an organization whose IRS record still names a founder who left five years ago, and the problem surfaces when the IRS sends correspondence that nobody current receives.
Make it part of your officer handover checklist alongside bank signatories, the registered agent address and your state filings. All four go stale the same way, quietly, and all four are discovered at the worst moment.
Where the EIN sits in the sequence
| Order | Step | Depends on |
|---|---|---|
| 1 | Incorporate with your state | Nothing |
| 2 | Obtain the EIN | The legal name from step 1 |
| 3 | Open a bank account | The EIN, plus your articles and usually a board resolution |
| 4 | Adopt bylaws and a conflict policy | A board |
| 5 | Apply for federal exemption | The EIN and the documents from steps 1 and 4 |
| 6 | Apply for state tax exemptions | Usually the federal determination letter |
| 7 | Register to solicit donations | Varies, often the determination letter |
Steps two and three are where new organizations lose the most time, and usually for the same reason. Banks generally want the articles of incorporation, the EIN confirmation, and a board resolution authorising the account and naming who may sign on it. Arriving with only two of the three means a second trip.
Draft that resolution at your first board meeting even if you are not opening the account for another month. It costs nothing and it is one of the documents you will be asked for repeatedly.
Keep the confirmation notice the IRS issues when the number is assigned. Banks, funders and payroll providers ask for it, and reproducing it later is more trouble than filing it now.
What it does not do
Three things people assume an EIN provides, and it provides none of them.
It does not make donations deductible. That requires 501(c)(3) recognition, applied for separately.
It does not exempt you from state taxes. State income, sales and property tax exemptions are separate applications through your state, and federal recognition does not grant them automatically.
It does not permit you to solicit donations. Most states require charitable solicitation registration before you ask their residents for money, and that is a separate process again.
The EIN is the first step of several, and treating it as the finish line is how organizations end up operating for a year believing they are something they are not.
Questions people ask
How do I get an EIN for a nonprofit?
Apply on Form SS-4. The online application is the fastest route and usually issues the number immediately at the end of the session.
Have ready your organization's exact legal name as filed with the state, its formation date, state of incorporation, mailing address, and the name and taxpayer identification number of a responsible party who is a natural person.
The online application must be completed in one session and is available only during certain hours. Fax and post are alternatives and take considerably longer.
Incorporate first, then apply, so the legal name on the EIN matches your filed articles exactly.
Is an EIN free for nonprofits?
Yes. The IRS charges nothing to issue an EIN, for any type of organization.
Sites offering to obtain one for a fee are charging for something free. Some are formation services bundling it with other work, and some exist purely to charge for the application itself.
Apply directly through the IRS. The form takes a few minutes and requires no specialist knowledge.
The fees you cannot avoid are the state incorporation filing and the IRS user fee for the exemption application, which is $275 for Form 1023-EZ and $600 for the full Form 1023.
Is an EIN the same as tax-exempt status?
No, and this is the most consequential confusion in this area.
An EIN identifies your organization to the federal government. Every employer and most entities have one, including taxable businesses.
Tax-exempt status under section 501(c)(3) is granted separately by the IRS after you apply on Form 1023 or 1023-EZ, and it is what makes donations deductible and exempts you from federal income tax on exempt activities.
An organization with an EIN and no determination letter is a taxable entity whose donors receive no deduction. Telling donors otherwise, however innocently, causes them a real loss.
Do I need an EIN before incorporating?
No, and applying beforehand is a mistake.
Incorporate first with your state, then apply for the EIN using the exact legal name on your filed articles of incorporation.
Applying first means guessing at a name that may not be the one the state ultimately accepts, and a mismatch between your EIN record and your legal name is the origin of most later administrative friction: rejected W-9s, mismatch notices to payers, and problems on your exemption application.
If it has already happened, you can correct the name on the EIN record rather than applying for a second number.
Can I look up a nonprofit's EIN?
Yes. EINs of exempt organizations are public information.
IRS Tax Exempt Organization Search is the authoritative source and lets you search by name, EIN or location. It confirms exempt status, deductibility and whether exemption has been revoked.
ProPublica Nonprofit Explorer gives you the organization's actual Form 990 filings, which carry the EIN on the first page.
Match on the EIN rather than the name whenever the decision matters. Names are not protected, several unrelated organizations may use similar ones, and the EIN is the only reliable identifier.
What is a responsible party on an EIN application?
A natural person who controls, manages or directs the organization and its funds. For a new nonprofit this is typically a founder, an officer or the board chair.
It must be an individual rather than an entity, and their own taxpayer identification number is required even though the EIN belongs to the organization.
The name given is not a permanent statement about who runs the organization, and it does need maintaining. When that person leaves, file Form 8822-B to change the responsible party.
Many organizations have a responsible party on record who departed years ago, which becomes a problem the first time the IRS needs to reach someone about the account.
What if we lose our EIN?
Look in several places before contacting the IRS, because the number is not confidential and appears in many of your own records.
Your IRS determination letter carries it. So does every Form 990 you have filed, and those are public: searchable free on ProPublica Nonprofit Explorer and confirmable on IRS Tax Exempt Organization Search.
Your bank holds it, as does any payroll provider, and it appears on every W-9 you have issued.
If none of those work, the IRS business and specialty tax line can provide it to an authorised person after verifying their identity. Do not apply for a second EIN, since duplicates create problems that then need resolving.
Does an EIN mean donations to us are deductible?
No. Deductibility depends on 501(c)(3) recognition, which is a separate application and a separate determination.
Until you have a determination letter, be straightforward with donors: say the application is pending and that deductibility depends on approval. If you apply within 27 months of the end of the month you formed in and are approved, recognition is generally retroactive to your formation date, so earlier gifts are covered.
Claiming status you have not been granted is not a technicality. A donor who loses a deduction because of it has a real financial loss and a legitimate grievance.
Donors can check your status themselves on IRS Tax Exempt Organization Search, and sophisticated ones do.
This is reference information, not legal or tax advice. Rules vary by state and change over time. For a decision that carries real consequences, check the current text at irs.gov or your state registry, and talk to a nonprofit attorney or CPA.