Nonprofit or exempt organizations do not have a blanket exemption from sales and use taxes. Some sales and purchases are exempt from sales and use taxes.To be taxexempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes. While organizations without 501c3 status can't apply for grants, there are still ways to legally accept donations, fund their business, and serve the community. This handy comprehensive checklist to help nonprofit 501(c)(3) organizations stay up-to-date with annual filing requirements. Find information on annual reporting and filing using Form 990 returns, and applying and maintaining taxexempt status. Prior to completing an application, non-profit organizations will need to ensure they are eligible to apply. If you are subject to this tax, you must file an income tax return on Form. In this letter we are. This exemption is available to religious, hospital, scientific, or charitable organizations, including low-income housing limited partnerships.