field_block:node:guide:title

Qualifying for Nonprofit Exempt Status

field_block:node:guide:body

Minnesota law exempts certain nonprofit organizations from paying Sales and Use Tax.

To get this exemption, an organization must apply to the Minnesota Department of Revenue for authorization, known as Nonprofit Exempt Status.

Note: Being exempt from federal income tax does not automatically mean an organization is exempt from sales and use tax in Minnesota. You must apply for the state’s sales tax exemption.

field_block:node:guide:field_paragraph

What Organizations Can Apply? [+]

To apply, your nonprofit must be exempt from federal income tax and meet other requirements. The requirements are listed in the table below.

Must be exempt from income tax under	Must also be
Internal Revenue Code, section 501(c)(3)	Organized and operated exclusively for charitable, religious, or educational purposes
Internal Revenue Code, section 501(c)	Senior citizen group organized for pleasure, recreation, or other nonprofit purposes. Limited to members who are 55 or older, or disabled.

Organizations that may qualify include:

Churches
Museums and historical societies
Private schools, colleges, and universities
Senior citizen groups
Volunteer fire departments
Youth organizations, including scouts, 4-H clubs, YMCA, YWCA, and youth sports associations

How to Apply [+]

Organizations That Do Not Qualify [+]

If your organization does not meet the criteria listed above, your organization does not qualify for nonprofit exempt status. Examples include:

Adult sports clubs of any type
Chambers of Commerce
City-run celebrations
Fraternities or sororities
Homeowners’ associations
Jaycees, Kiwanis, and Lions Clubs
Knights of Columbus and Masonic Lodges
Lake improvement associations
Medical clinics
Prayer societies
Social clubs
Trade and professional associations

Note: Veteran organizations do not qualify for Nonprofit Exempt Status but may claim a limited exemption on some purchases. For details, see Purchases.

Guide Menu

Qualifying for Nonprofit Exempt Status