Where does Tax-exempt Status come from?
The tax-exempt designation is a status recognized by the IRS. All tax-exempt organizations under Section 501(c)3 of the Internal Revenue Code are also nonprofit organizations under state law but the reverse is not true. All nonprofit organizations are NOT automatically tax-exempt under Federal Law. They must obtain Federal tax-exempt status by: (1)applying separately with all of the costs of doing so, or (2) qualifying as a member of a tax-exempt group, such as the Amateur Athletic Union of the US Inc. The Internal Revenue Service issued a group ruling 501(C)3 determination letter to the Amateur Athletic Union of the US Inc. in January 1966. This letter from the IRS gives the Amateur Athletic Union of the US Inc. tax-exempt status. Each year the Amateur Athletic Union of the US, Inc. provides a list of subordinates to be included in this group ruling to the IRS. All Affiliated Organizations are listed as a subordinate. This means affiliate organization are recognized as tax-exempt orga
