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Is there a difference between a non-profit organization and a tax-exempt organization?

April 26, 2017difference non-profit organization tax-exempt

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Is there a difference between a non-profit organization and a tax-exempt organization?

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Yes. Not all non-profit organizations are tax-exempt. In order to be a tax-exempt organization as determined by the Internal Revenue Service, an organization must file a Form 1023, Application for Recognition of Exemption. Without a determination letter from the IRS granting such exemption, an organization, even a non-profit organization, will not be tax-exempt.