How To Change Ntee Code With Irs

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Decoding the IRS: A Step-by-Step Guide to Changing Your NTEE Code

Hello there, fellow non-profit warriors! Ever felt like your organization's mission has evolved, but your official classification is stuck in the past? Or maybe you've just discovered your Non-profit Type, Size, and Ethnicity (NTEE) code doesn't quite capture the essence of the incredible work you do. If you've been scratching your head wondering, "How in the world do I change my NTEE code with the IRS?" then you've come to the right place.

This isn't just about a simple administrative tweak; it's about accurately reflecting your impact and ensuring your organization is categorized correctly for grants, public perception, and even future collaborations. Let's dive in and demystify this process, one clear step at a time.

Step 1: Understanding Your Current NTEE Code and Why It Needs a Change

Before we even think about touching a form, let's get introspective.

What is your current NTEE code? Do you know it offhand? If not, a quick way to find it is to look at your organization's Form 990, Part I, Line 1. It's usually a single letter followed by two digits (e.g., "A12"). Go ahead, pull up your last Form 990 and find it. Don't worry, I'll wait!
Why do you believe it needs to be changed? This is the crucial first question. Is your organization:
- Expanding into new program areas that fall under a different primary classification?
- Narrowing its focus to a more specialized niche?
- Realizing an initial misclassification when you first applied for 501(c)(3) status?
- Undergoing a significant mission shift that renders the old code obsolete?
Take a moment to truly articulate the reason for the change. The clearer you are on why you need to change it, the easier it will be to justify your request to the IRS. Perhaps your animal shelter initially focused on dog rescue (NTEE code D20), but now you've become a leading advocate for wildlife rehabilitation (NTEE code D40). This is a perfect example of a legitimate reason for a change.

Step 2: Researching and Identifying Your New NTEE Code

This is where you become a detective, sifting through the NTEE code possibilities.

Access the NCCS NTEE Code List: The National Center for Charitable Statistics (NCCS) maintains the most comprehensive and up-to-date list of NTEE codes. You can find it on their website or through various non-profit resource portals.
- Search for "NCCS NTEE Codes" on your preferred search engine.
- Navigate through the categories. The NTEE system is organized into major groups (A-Z) and then further broken down into more specific subcategories. For example, "Education" is "B," and then "Higher Education" might be "B40."
Carefully Review Descriptions: Don't just pick a code that sounds right. Read the detailed descriptions associated with each potential code. Ensure the description accurately and thoroughly reflects your organization's primary purpose, activities, and beneficiaries.
- Think about your core programs and services. Which NTEE description aligns most closely with the majority of your organization's efforts?
- Consider your target audience. Does the new code's description resonate with who you serve?
Consult Multiple Codes (If Necessary): Sometimes, an organization's work can span multiple NTEE categories. While you'll ultimately choose one primary code, it's helpful to understand where your other activities might fit. This can help you refine your primary choice.
- Example: A community development organization might also have a significant educational component. While their primary code might be "P" (Community Improvement & Capacity Building), they might also operate programs that fall under "B" (Education). Your goal is to select the most fitting primary code.

Step 3: Gathering Supporting Documentation

The IRS likes evidence, and so should you!

Amended Articles of Incorporation/Bylaws (if applicable): If your organization has formally changed its purpose or mission as reflected in its foundational documents, you'll need to include these. This is particularly important if your original NTEE code was based on an outdated purpose statement.
- Ensure these documents clearly state the revised purpose that aligns with the new NTEE code.
Updated Program Descriptions: Provide detailed descriptions of your current programs and activities. Highlight how these programs align with the newly selected NTEE code.
- This should be more than just a bulleted list. Describe the impact of your programs and how they serve your mission.
Financial Statements: Recent financial statements (e.g., your latest Form 990 or internal financial reports) can provide context about your organization's expenditures and revenue sources, indirectly supporting your claim of a shift in focus.
Board Resolutions: If your board of directors has formally approved a change in mission, program focus, or NTEE code, include a copy of the resolution. This demonstrates a clear organizational decision.
Website Content/Marketing Materials: While not strictly "official" documents, including printouts of relevant pages from your website or marketing brochures can help the IRS understand your current operations and how you present yourselves to the public. These can provide a clear picture of your current activities.

Step 4: Preparing Your Request – The Cover Letter is Key!

This is where you make your case to the IRS.

Draft a Formal Cover Letter: This letter will be your primary communication with the IRS. It should be concise, professional, and clearly state your request.
- Use your organization's official letterhead.
- Address it to the Internal Revenue Service, Exempt Organizations Determinations Office. (Specific address typically found in IRS publications or by searching for "IRS Exempt Organizations Determinations Office address").
- Clearly state your organization's full legal name, Employer Identification Number (EIN), and current NTEE code.
- State your request to change your NTEE code to the new, desired code.
- Provide a clear and concise explanation for the change. Refer back to your reasons from Step 1.
- Briefly describe your organization's current primary activities and how they align with the new NTEE code.
- List all attached supporting documentation.
- Include contact information for your organization.
- Sign the letter by an authorized officer (e.g., President, Executive Director).
Pro-Tip: Make your cover letter compelling and easy to understand. The IRS examiner should be able to grasp your request and its justification quickly.

Step 5: Submitting Your Request to the IRS

There's no specific IRS form for changing your NTEE code, so a letter is your method.

Mail Your Package: Your request, including the cover letter and all supporting documentation, should be mailed to the IRS.
- Use certified mail with a return receipt requested. This provides proof of mailing and delivery, which is essential for your records.
- Keep a complete copy of everything you send for your own files.
- The Address: While it can vary, the most common address for such requests is:
  Internal Revenue Service Exempt Organizations Determinations Office P.O. Box 12192 Covington, KY 41012-0192
  Always double-check the most current IRS guidance or website for the precise address before mailing.

Step 6: Following Up and Awaiting a Response

Patience is a virtue, especially when dealing with government agencies.

Processing Time: The IRS does not provide a specific timeline for NTEE code change requests. It can vary significantly depending on their workload.
- Be prepared for a waiting period that could range from several weeks to several months.
What to Expect:
- You may receive a letter acknowledging receipt of your request.
- The IRS may contact you for additional information or clarification. Be prepared to respond promptly and thoroughly.
- Eventually, you should receive a formal letter from the IRS confirming whether your NTEE code has been changed.
What if you don't hear back? If a significant amount of time has passed (e.g., 3-4 months) and you haven't received any communication, you can attempt to contact the IRS Exempt Organizations customer service line. Have your EIN and a copy of your mailed request ready.

Step 7: Updating Your Records and Communicating the Change

Once you receive confirmation, the work isn't over!

Update Internal Records: Make sure your organization's internal databases, financial software, and any other relevant records reflect the new NTEE code.
Update External Profiles: If your organization is listed on charity navigators (e.g., GuideStar, Charity Navigator), philanthropic databases, or other public platforms, update your NTEE code there as well.
Inform Stakeholders (Optional but Recommended): While not always necessary, you might consider informing key stakeholders, such as major funders or relevant government agencies, about your updated NTEE code, especially if the change significantly impacts how your organization is perceived. This demonstrates transparency and a commitment to accurate representation.

FAQs: How to...

How to find my current NTEE code?
- Check your organization's most recently filed Form 990, Part I, Line 1.
How to determine the correct new NTEE code?
- Consult the NCCS NTEE Code List online and carefully read the descriptions to find the code that best reflects your organization's primary purpose and activities.
How to format my cover letter to the IRS?
- Use formal business letter format, include your organization's EIN, current and desired NTEE codes, and a clear explanation for the change.
How to know what supporting documents I need?
- Include documents that demonstrate your organization's shift in primary activities, such as amended articles, updated program descriptions, and board resolutions.
How to send my request to the IRS?
- Mail your package via certified mail with a return receipt requested to the IRS Exempt Organizations Determinations Office.
How to track the status of my NTEE code change request?
- The IRS generally does not provide an online tracking system for these requests. Keep your certified mail receipt, and contact their customer service if a long period passes without a response.
How to handle an IRS request for more information?
- Respond promptly and thoroughly to any IRS inquiries, providing all requested documentation or clarification.
How to update GuideStar or Charity Navigator with my new NTEE code?
- Once the IRS confirms the change, access your organization's profile on those platforms and follow their specific instructions for updating organizational information, which typically includes NTEE codes.
How to prevent future NTEE code discrepancies?
- Regularly review your organization's mission and programs. If there's a significant shift, proactively consider if your NTEE code still accurately represents your work.
How to get help if I'm unsure about the process?
- Consult with an attorney specializing in non-profit law or an experienced non-profit consultant. They can provide tailored advice and ensure compliance.

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