How to Fill Out a W-9 for a Nonprofit

Filling out a W-9 form is a common requirement for nonprofit organizations engaging in various financial transactions. The W-9, or Request for Taxpayer Identification Number and Certification, obtains accurate taxpayer identification numbers (TINs) from U.S. persons and organizations. Its purpose is to ensure payers can correctly report payments to the Internal Revenue Service (IRS), often on forms like the 1099. For nonprofits, providing a completed W-9 is necessary when they receive certain types of income or are involved in financial activities that require tax reporting by the payer. The form helps maintain financial transparency and ensures compliance with federal tax regulations.

Gathering Essential Information for Nonprofits

Before beginning the W-9 completion process, a nonprofit organization must compile specific information to ensure accuracy. The nonprofit’s legal name, as registered with the IRS and found on its determination letter or articles of incorporation, is required. If the organization uses a “doing business as” (DBA) name, it should also be available.

The nonprofit’s complete mailing address is also needed. Nonprofits must provide their Employer Identification Number (EIN), a unique nine-digit number assigned by the IRS for tax purposes. An EIN is used by organizations and can be found on previous tax filings or the IRS determination letter. Nonprofits should use their EIN, not an SSN, on the W-9. Understanding the nonprofit’s specific tax-exempt status, such as 501(c)(3) or 501(c)(4), influences how certain W-9 sections are completed. The official W-9 form can be obtained directly from the IRS website or requested from the entity requiring its completion.

Step-by-Step Instructions for W-9 Completion

Completing the W-9 form for a nonprofit requires careful attention to each line to ensure the information accurately reflects the organization’s tax status.

Line 1 and 2: Legal Name and DBA

On Line 1, enter the nonprofit’s exact legal name as it appears on official IRS documents. If the nonprofit uses a “doing business as” (DBA) name, enter it on Line 2. If no DBA name is used, Line 2 can be left blank.

Line 3: Federal Tax Classification

Line 3, Federal Tax Classification, is important for nonprofits. Most tax-exempt organizations are structured as corporations, so check the “Corporation” box. Also check the “Exempt payee” box, indicating exemption from backup withholding. Some guidance suggests checking “Other” and writing “Nonprofit corporation exempt under IRS Code Section 501(c)(3).”

Line 4: Exemptions

For Line 4, Exemptions, two subsections may apply. The “Exempt payee code” is “1” for organizations exempt from tax under section 501(a) of the Internal Revenue Code. This code signifies exemption from backup withholding, a form of tax collection on certain payments. The “Exemption from FATCA reporting code” usually does not apply to U.S. nonprofits and can be left blank, unless the organization has specific foreign account obligations, where code “A” might apply.

Lines 5 and 6: Address and TIN

Enter the nonprofit’s complete mailing address on Lines 5 and 6. An optional box for the requester’s name and address can be filled for internal record-keeping. In Part I, Taxpayer Identification Number (TIN), enter the nonprofit’s Employer Identification Number (EIN) in the designated box.

Finalizing and Submitting the W-9

Once all relevant sections of the W-9 form have been completed, the final step involves certification and submission. Part II requires an authorized individual from the nonprofit to sign and date the form. By signing, the individual certifies the taxpayer identification number is correct and the organization is not subject to backup withholding.

Before submission, review the completed W-9 for errors or omissions. Submit the form directly to the requesting entity, not the IRS. Submission can be done via mail, email, or hand-delivery, depending on the requester’s preferred method. Maintain a copy of the signed W-9 for the nonprofit’s records.