How to Get a Tax ID for Donations

Key Takeaways

• A tax ID (EIN) is required for nonprofits to open bank accounts, file taxes, and receive donations.
• Listing your charity’s EIN publicly helps donors verify legitimacy and encourages corporate donations.
• EINs are essential for participating in CSR platforms and matching gift programs.
• The IRS requires specific eligibility for tax-exempt status, which must be obtained separately from the EIN.
• Charities should avoid common EIN-related errors, such as assuming tax exemption is automatic.
• Displaying your EIN on donation materials builds donor trust and improves financial transparency.

How to get a tax ID number for a charity allows a charity to complete any legal activities under this number, including opening bank accounts, hiring employees, applying for business license applications, and filing tax forms. This tax ID is known as the Employee Identification Number (EIN).

You can establish a nonprofit by completing all necessary paperwork and requirements in order to be seen as a legal charity. This process begins with acquiring an EIN. The EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (TIN).

Why Nonprofits Need an Employee Identification Number

An EIN is similar to a Social Security number. Issued by the IRS, the EIN is used for all of an organization's legal activities, such as:

• Opening a bank account.
• Hiring employees.
• Business license applications.
• Filing tax forms.

Unlike a Social Security number, an EIN is formatted like this: 12-3456789.

The EIN is recommended because it will:

• Help organization members protect themselves by not having to use their own Social Security numbers.
• Document the charity's current address.
• Help document charitable deductions at tax time.
• Help donors find the correct charity and ensure their money is spent correctly.
• Help a charity avoid being caught in a scam because all charities have a distinct number.

Charity scams are unfortunately common. Fake charities will choose similar names as well-known charities to try to siphon funds from donors that have not searched via the charity's EIN number. Law enforcement can help combat this issue by tracking the real EIN and name against the fake entities.

Importance of Displaying Your EIN for Donations

Displaying your organization's tax ID for donations (EIN) on your website, donation receipts, and corporate giving pages builds credibility and transparency. It helps donors confirm your nonprofit's legitimacy and ensures their contributions are tax-deductible. Many corporate giving and volunteer grant programs also require your EIN to process matching donations. Failing to list your EIN can result in missed funding opportunities from donors who require verification before contributing​​.

Nonprofits should consider including their EIN on:

• Online donation forms
• Email acknowledgments and tax receipts
• CSR/matching gift portals
• Event registration forms
• Major gift or grant proposals

This simple step reassures supporters and may increase your organization’s success with corporate partnerships and third-party fundraising platforms.

Applying for an EIN

Applying for an EIN requires a person who must be a "responsible and duly authorized member or officer of the exempt organization." This person must provide:

• His or her own Social Security number.
• The legal name of the organization.
• The organization's mailing address.
• The organization's physical address.

The steps to apply for an EIN can be completed via phone, mail, fax, or online. The preferred method is online, as it is the fastest method and provides confirmation via email. Prior to completing the form, you should print a hard copy of it to be sure all necessary information is available when you start the online form. This also prevents the IRS webpage from timing out before you are done.

If you prefer, you can reach the IRS on the phone by calling 1-800-829-4933. You can also download IRS Form SS-4, fill it out, then fax or email it to the IRS. If you fax the application, it will take approximately a week to receive a response. If you mail the form, it will take between four and six weeks for it to be processed.

Most questions regarding the EIN application process and what is required can be answered by reviewing the IRS PDF Instruction Guide.

Once you receive you EIN, begin using the number on all legal documents and transactions, such as opening a bank account or filing annual tax forms. You'll no longer need to use your personal Social Security number. In some states, you need to provide your EIN number prior to applying for tax-exempt status from the IRS.

Common Mistakes When Applying for a Charity EIN

When applying for a tax ID for donations, nonprofits often make mistakes that delay processing or create compliance issues. Avoid these pitfalls:

• Assuming the EIN equals tax-exempt status: While an EIN is necessary, nonprofits must still apply separately for IRS tax-exempt recognition (typically via Form 1023 or 1023-EZ).
• Using the wrong business structure: You must clearly identify your organization as a nonprofit when applying for an EIN to ensure proper classification.
• Not designating a responsible party: The IRS requires one responsible party with a valid Social Security number or ITIN when applying.
• Failing to keep the EIN confirmation letter secure: This letter is essential for opening bank accounts and proving nonprofit status during audits or grant applications.

To avoid these errors, review the IRS EIN application instructions in detail before submission​.

EIN and Tax-Exempt Status

If a nonprofit organization has an EIN, it is not automatically deemed a tax-exempt nonprofit. Entities that request tax-exempt status for a charity should confirm they match the requirements needed to be deemed exempt. The organization must fall into one of the following categories:

• Charitable
• Educational
• Scientific
• Literary
• Part of a sports competition
• Public safety testing
• Prevention of cruelty to children or animals

You can prove your nonprofit status with an IRS determination letter received at the time tax-exempt status was granted. The letter is imperative to proving tax-exempt status, to receive grant money, and to prove status to new board members who want to confirm the charity is properly certified. Keep the IRS determination letter in a secure location. If you lose the letter, the EIN cannot act as proof of tax-exempt status.

Using Your EIN to Support Donor Confidence

Once you obtain an EIN, use it strategically to strengthen donor confidence. Many prospective contributors—especially those donating large sums or applying for matching gifts—will research your nonprofit’s status using the EIN. Listing it prominently on your site and in donation communications reduces fraud concerns and helps differentiate your charity from similarly named organizations.

Additionally, platforms like Double the Donation and Paybee recommend including your EIN on corporate giving pages to make it easier for donors and employers to process matching contributions efficiently​​.

Frequently Asked Questions

1. Is an EIN required to receive donations for a nonprofit?
   Yes. An EIN is essential for legal and financial transactions, including accepting tax-deductible donations.
2. Can I use my personal Social Security number instead of an EIN for my nonprofit?
   No. For security, legal protection, and tax compliance, a nonprofit must have a separate EIN.
3. Does an EIN automatically mean my nonprofit is tax-exempt?
   No. You must separately apply for tax-exempt status with the IRS after receiving your EIN.
4. Where should I display my nonprofit’s EIN?
   List it on donation forms, thank-you emails, receipts, and any matching gift platforms or grant applications.
5. What if I lose my EIN confirmation letter?
   You can request a replacement from the IRS, but it’s best to store it securely with your official documents.

If you need help with how to get a tax ID number for a charity, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.