Do all charter schools file for non-profit status?
Charter schools are public schools by law and, therefore, are tax exempt. Charter schools also are allowed to form as non‐profit organizations, which most do. Filing Articles of Incorporation as a non‐profit organization is all that is required to obtain a separate tax identification number and establish the school as a non‐profit corporation. In addition, most charter schools take the additional step of filing Form 1023 with the Internal Revenue Service to apply for a specific designation as a 501(c)(3) organization. This refers to a specific section of the Internal Revenue Code. Receiving an official designation as a 501(c)(3) organization does not change the tax exempt status of the charter school. It merely clarifies it for some entities, most notably charitable organizations and potential funders who require official 501(c)(3) documentation in order to give grants. Official recognition also may require the charter school to file informational tax returns (Form 990) annually. There
