How to Determine Your Organization’s NTEE Code

An NTEE, or National Taxonomy of Exempt Entities, code is a classification system used by the Internal Revenue Service (IRS) to categorize nonprofit organizations. This alphanumeric code provides a standardized way to describe a tax-exempt organization’s primary purpose and activities. Having an accurate NTEE code ensures compliance with IRS regulations, enhances visibility for potential grant applications, assists donors in identifying organizations that align with their philanthropic interests, and helps researchers analyze trends within the nonprofit sector.

The NTEE Classification System

The NTEE system is structured hierarchically, allowing for broad categorization that narrows down to specific types of organizations. It begins with 10 broad categories, represented by a single letter, such as ‘A’ for Arts, Culture, and Humanities or ‘B’ for Education. These broad categories then branch into 26 major groups, providing a more refined classification of an organization’s primary focus. For example, within the ‘Health’ category, denoted by ‘E’, there are subcategories like ‘E20’ for Hospitals or ‘E30’ for Community Health Systems.

Further specificity is achieved through a two-digit number following the initial letter, which can be followed by an optional single digit for even finer detail. An NTEE code like “B116” indicates an organization primarily focused on education (B), specifically adult education (11), and providing monetary support (6) within that area. This detailed alphanumeric structure enables a precise understanding of an organization’s mission and operational scope. The system helps differentiate diverse nonprofits, such as an organization for environmental beautification (C50) from one focused on animal welfare (D01).

Steps to Identify Your NTEE Code

To determine your organization’s NTEE code, begin by thoroughly understanding your nonprofit’s mission statement, goals, and primary activities. This foundational understanding is important for accurately navigating the classification system. With a clear picture of your organization’s core purpose, you can identify the most suitable NTEE code.

Next, review the NTEE code list, which is divided into major categories represented by letters and further detailed through two-digit numbers. Identify the broad category that most closely aligns with your mission, such as Arts, Education, or Human Services. For instance, an organization providing after-school programs would likely start with the Education category.

After selecting a broad category, refine your classification by drilling down into the subcategories. Compare your specific activities and programs against the detailed descriptions provided for each subcategory. For example, within the Education category, you might find codes for Elementary and Secondary Schools (B20) or Libraries (B70), allowing you to select the most precise fit. Organizations filing Form 1023-EZ must include their NTEE code on the application for tax-exempt status.

Official Resources for NTEE Code Accuracy

For verifying or refining your NTEE code selection, relying on official resources from the Internal Revenue Service (IRS) and the National Center for Charitable Statistics (NCCS) is important. The IRS Tax Exempt Organization Search Tool allows you to look up an organization’s official NTEE code by entering its name or Employer Identification Number (EIN). The NCCS website also provides a list of NTEE categories and full descriptions, which can help in making an accurate selection.

If your organization’s mission or activities evolve, it may be necessary to update your NTEE code. You should submit a written request to the IRS Exempt Organizations Determinations Office, including your organization’s name, EIN, and a detailed explanation of the new activities or mission changes. Supporting documents, such as updated mission statements or program descriptions, can be included with your request.