Q&As

A determination letter is the most important legal document your organization possesses. The IRS sends you this letter after you have successfully applied for the recognition of your organization's tax-exempt status. In this document the IRS indicates under which section of the Internal Revenue Code your organization is qualified.

For instance, if you file Form 1023, you expect to be recognized as a 501(c)(3) tax-exempt organization. In order to avoid revocation of your status, your organization must continue operating according to the manner you described in your application.

The determination letter is the only official document and proof that your organization is recognized as a tax-exempt organization. Keep it in a safe place.

For more information, see Financial Responsibilities of Nonprofit Boards in our bookstore.