How do organizations get tax-exempt status?

Marielle Segarra Apr 29, 2019
Share Now on:
HTML EMBED:
COPY
Zach Gibson/Getty Images

How do organizations get tax-exempt status?

Marielle Segarra Apr 29, 2019
Zach Gibson/Getty Images
Share Now on:
HTML EMBED:
COPY

New York’s attorney general is investigating the National Rifle Association to determine whether it has violated its tax-exempt status. Federal law clearly regulates the steps an organization can take to become tax-exempt (that is, exempt from paying certain taxes, including income tax). Once an organization gets this designation, it isn’t for life. Although revocations are not common, an organization can risk its tax-exempt status if it is involved in illicit activities or pays its executives too much, for example.

Click the audio player above to hear the full story.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.