Nonprofit organizations must apply for exemption with the Comptroller's office and receive exempt status before making tax-free purchases. To apply for exemption, complete AP-209 and provide all required documentation as listed in the application.See Form 202 (Word 152kb, PDF 142kb). To get this exemption, you will need to have your 501(c)3 nonprofit status from the IRS and your Texas Franchise tax exemption. In a nonprofit corporation, no person owns the nonprofit or its property. Not all of the purposes for which a nonprofit corporation can be formed would qualify the organization for federal taxexempt status, and a. Inkind donations allow nonprofits to access goods and services that they may not be able to afford to purchase. Charitable contributions will only be granted to organizations with 501(c) (3) status. No third party requests. The Houston Food Bank is registered as a 501(c)(3) non-profit organization.