IRS Determination Letter: What It Is and Why It Matters

Every nonprofit needs it at some point: a copy of the IRS determination letter. A grant application requires it. A bank account application asks for it. A state registration renewal demands it. A new board member wants to verify the organization's legitimacy.

And someone on the Finance team opens the file cabinet and discovers it is not there.

The IRS determination letter is one of the most important documents your organization possesses — and one of the most frequently lost. Here is what it is, why it matters, and what to do when you cannot find it.

What Is an IRS Determination Letter?

An IRS determination letter is the official letter from the Internal Revenue Service confirming that your organization has been recognized as exempt from federal income tax under a specific section of the Internal Revenue Code — typically Section 501(c)(3) for charitable organizations.

The letter specifies:

• Your organization's legal name and EIN (Employer Identification Number)
• The IRC section under which exemption has been recognized
• Your organization's public charity classification (or private foundation status)
• The effective date of exemption
• Any conditions attached to the exemption

For most organizations, the determination letter arrives as a result of filing Form 1023 (or Form 1023-EZ for smaller organizations) with the IRS. The IRS reviews the application and, if approved, issues the determination letter.

Why It Matters

Funders require it. Foundation grants, government contracts, and major donor gifts often require a copy of the determination letter before any funds are released. It is the document that proves your organization is legally authorized to receive tax-deductible contributions.

Banks require it. When opening an organizational bank account, banks typically require evidence of tax-exempt status along with your EIN. The determination letter satisfies this requirement.

State registration requires it. Most state charitable registration processes require a copy of the determination letter as part of the registration package.

Donors use it. Major donors sometimes request a copy to verify that contributions will be tax-deductible before making a significant gift.

It confirms your charity classification. The letter confirms whether your organization is a public charity or private foundation — a distinction that affects donor deductibility limits, grant eligibility, and regulatory requirements.

The Difference Between a Determination Letter and an EIN Confirmation

These are two entirely different documents that are frequently confused.

The EIN confirmation letter (Form CP 575) is issued by the IRS when you apply for an Employer Identification Number. It simply assigns your nine-digit EIN and confirms your organization's name. It says nothing about tax-exempt status.

The determination letter confirms that your organization has been granted tax-exempt status under the applicable IRC section. An organization can have an EIN without being tax-exempt — all organizations that employ people or file certain returns must have an EIN, regardless of tax status.

Submitting an EIN confirmation letter when a funder or government agency asks for a determination letter will not satisfy the requirement and will delay your application or registration.

How to Get a Replacement

If your original determination letter has been lost, you have several options:

Request IRS Letter 947. Contact the IRS Tax Exempt and Government Entities division at 877-829-5500 and request a verification letter (sometimes called an "affirmation letter"). The IRS can issue a letter confirming your organization's exempt status and public charity classification. Allow several weeks for processing.

Submit Form 4506-A. This form requests copies of exempt organization forms from the IRS. It can be used to request copies of previously filed applications for recognition of exemption.

Check the IRS Tax Exempt Organization Search. The IRS maintains a public database at apps.irs.gov/app/eos/ where you can search for your organization and verify your exempt status, classification, and most recent filing. While this is not a replacement for the actual letter, it provides immediate verification that many funders will accept.

Check your filing history. If your organization used a CPA or attorney to prepare the 1023 application, their files likely contain a copy.

Protecting and Organizing Your Determination Letter

Given how often the determination letter is needed, it should be stored:

• As a scanned PDF in your organization's secure cloud storage
• In your governing documents folder alongside your articles of incorporation and bylaws
• Provided to your CPA for their client file
• Referenced in your onboarding documentation for new Finance and Development staff

Many organizations keep their determination letter in an accessible location for years without issue — until a leadership transition or office move — and then spend weeks trying to reconstruct it during a time-sensitive grant application.

sherbertOSOS's onboarding process includes an IRS Business Master File (BMF) lookup that verifies your organization's tax-exempt status, public charity classification, and EIN at setup. This creates a verified record of your exempt status in the system from day one — reducing (though not eliminating) the need to locate the physical letter for routine verifications.

Frequently Asked Questions

How do I get a replacement determination letter?

Call the IRS Tax Exempt and Government Entities Customer Account Services line at 877-829-5500 and request a verification letter (Letter 947). You can also check your current exempt status at apps.irs.gov/app/eos/ for immediate online verification.

Is a determination letter the same as an EIN confirmation?

No. The EIN confirmation (CP 575) only confirms your Employer Identification Number. The determination letter confirms your tax-exempt status under a specific section of the Internal Revenue Code. These are different documents, and funders who ask for a determination letter will not accept an EIN confirmation.

Do all 501(c)(3) organizations have a determination letter?

Most do, but churches are not required to apply for formal recognition from the IRS and may not have a determination letter. Organizations with normally less than $5,000 in annual gross receipts are also not required to apply for formal recognition, though most do anyway.

What if our organization's name has changed since the letter was issued?

Notify the IRS of the name change and request an updated letter. In the meantime, be prepared to explain the name change to funders and banks, providing both the current legal name and the name on the determination letter along with documentation of the change (typically a state filing).

How long does it take to get a replacement?

Calling the IRS directly to request a verification letter typically takes several weeks for delivery. Online verification through the IRS Tax Exempt Organization Search is immediate, and most funders will accept a printout as supplementary verification.

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