How to Get an EIN for a Nonprofit Organization

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) that helps identify a nonprofit organization for tax purposes. Obtaining an EIN is a standard step for most nonprofits, even those without employees, as it enables bank accounts, grant applications, and many tax-related activities. The process is straightforward and can be completed online, by mail, or by fax. This guide explains the steps, required information, and practical tips to secure an EIN efficiently for a nonprofit entity.

What Is An EIN And Why Do Nonprofits Need It

An EIN, also known as a Federal Tax Identification Number, serves as the nonprofit’s official identifier in official documents and financial transactions. For nonprofit organizations, an EIN is essential for:

  • Opening a corporate bank account in the nonprofit’s name
  • Filing annual information returns with the IRS
  • Applying for grants and government contracts
  • Hiring employees and managing payroll
  • Exempt organizations applying for tax-exempt status under 501(c)(3) or other codes

Even if a nonprofit has no employees, an EIN helps separate personal finances from the organization’s finances and simplifies legal and financial reporting.

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Eligibility And Information You’ll Need

Most active nonprofit organizations are eligible to apply for an EIN directly with the IRS. The process requires basic information about the entity and its responsible party. Key details include:

  • Legal name of the nonprofit as registered with state authorities
  • Address of the nonprofit’s principal office
  • State of incorporation or formation
  • Reason for applying for an EIN (new nonprofit, change in ownership, etc.)
  • SSN or ITIN of the responsible party for verification (often the board president or officer)
  • Type of entity (nonprofit corporation, trust, association) and primary activity

It’s important to have accurate information before starting the application. Mistakes can delay processing and require corrections.

How To Apply Online With The IRS

The fastest and simplest method is the IRS online EIN application. It is available weekdays during normal business hours, and the system provides an immediate EIN upon completion. Steps include:

  • Go to the IRS EIN online application portal and select the reason for applying for an EIN
  • Enter organizational information, including legal name, address, and state of incorporation
  • Provide the responsible party’s personal information and tax identification numbers
  • Review the information for accuracy and submit the application
  • Receive the EIN instantly on the screen and save the confirmation notice

Tips for online application:

  • Use the nonprofit’s official address and official legal name exactly as registered
  • Have the responsible party’s SSN or ITIN ready for verification
  • Ensure the entity type matches state registrations (for example, nonprofit corporation vs. unincorporated association)

If the online system is unavailable or the nonprofit cannot complete it online, the IRS also offers a phone number for urgent or specialized cases, and mail or fax options remain possible.

Alternative: Applying By Mail Or Fax

For those who prefer or require a paper process, the IRS allows EIN applications by mail or fax using Form SS-4. This method takes longer, typically several weeks, but may be suitable for entities with limited internet access or complex ownership structures. Steps include:

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  • Download and complete Form SS-4 with accurate nonprofit details
  • Mail the form to the appropriate IRS address or fax it to the designated number
  • Await the IRS confirmation, which will include the assigned EIN

Processing times vary based on method and IRS workload, so plan accordingly for grants, bank setup, or payroll needs.

Special Considerations For 501(c)(3) And Other Exemptions

While obtaining an EIN is not the same as securing tax-exempt status, most nonprofits seek an EIN in preparation for applying for 501(c)(3) status. The EIN is required on Form 1023 or Form 1023-EZ and is used in correspondence with the IRS. Some important notes:

  • State and local registrations may require a copy of the EIN for compliance and fundraising
  • Even after tax-exempt status is approved, the nonprofit will use the same EIN
  • Do not apply for multiple EINs; a single nonprofit should have one primary EIN

Nonprofits with multiple entities (like a parent organization and a separate program) may need separate EINs for each entity, depending on legal structure.

What Happens After You Get An EIN

Once the EIN is issued, the nonprofit should update key stakeholders and begin using the number for all official activities. Practical next steps include:

  • Open a dedicated bank account in the nonprofit’s name using the EIN
  • Set up payroll, if applicable, including state employment taxes and withholding
  • File annual information returns (for example, Form 990, 990-EZ, or 990-N) with the IRS
  • Maintain proper record-keeping for grants, donations, and expenditures

It is advisable to keep the EIN confidential with internal documents and financial institutions, sharing it only with legitimate entities and personnel.

Common Mistakes And Best Practices

New nonprofits often trip on the following pitfalls. Addressing them early can prevent delays and compliance issues:

  • Inaccurate or mismatched legal name and state of incorporation between filings
  • Using personal contact information as the formal nonprofit address
  • Applying for multiple EINs due to confusion over entity structure
  • Delaying bank account setup or payroll because of missing EIN

Best practices include verifying all entity details with state filings, using a dedicated mail address for the nonprofit, and documenting all steps in a formal governance log.

Practical Tips For Nonprofit Leaders

To streamline the EIN process and subsequent operations, consider the following:

  • Prepare in advance: gather formation documents, board member information, and the responsible party’s tax ID
  • Consult with a nonprofit attorney or accountant if the entity has a complex ownership structure
  • Create a simple checklist to track the application status and post-issuance tasks
  • Integrate EIN usage into grant applications and fundraising materials for consistency

Key Point: An EIN is a foundational administrative step that enables legal, financial, and programmatic activities for a nonprofit, even before grants and donations begin.

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