How Nonprofits Get an EIN: Step-by-Step Guide

Starting or growing a nonprofit is all about turning passion into action—taking the steps that allow you to chase your mission, build credibility, and (yes!) bring funding in the door. But there’s a process to making your nonprofit “official” in the eyes of banks, the IRS, funders, and partners. One of your very first administrative keys to unlock is the Employer Identification Number, known as the EIN. If you’re less excited about government forms than community impact, this guide is written for you—a practical walk-through for nonprofits, large and small, to get their EIN calmly, quickly, and confidently.

Let’s start with the basics—what’s an EIN, and why does your nonprofit need one? Think of the EIN as your organization’s Social Security Number, but for all things official: banking, reporting, fundraising, and tax compliance. Whether you’re about to open that first checking account or are dreaming ahead to federal grant applications, it’s all going to start with those nine little digits from the IRS.

An EIN is more than a requirement—it’s a door opener. Without it, banks can’t create an account for your nonprofit, major funders can’t process your grants, and you can’t file required IRS documents. For any nonprofit planning to hire staff, run a payroll, or even just handle donations above the table, your EIN is non-negotiable. If your vision for community change is picking up steam, the EIN is the first foundational building block—so let’s make sure you have it in your toolkit.

Here’s where the process becomes refreshingly straightforward: applying for an EIN as a nonprofit is simpler and faster than many expect. The IRS has an online, phone, mail, and even fax process—so you can work in a way that fits your comfort level and timeline. For most smaller nonprofits, the online approach is a breeze, getting you an EIN in about fifteen minutes. Even if your organization is just at the grassroots and you don’t have a formal finance team, this is a task you can confidently tackle without outside help.

Before you start the IRS application, you’ll want to gather a few basics: your official nonprofit name (exactly as you registered it with your state), your mailing address, your purpose (what the IRS calls the “reason for applying,” which, for nonprofits, is usually “formed a new organization”), and information about your responsible party (this is typically your board president or executive director). If you’re still deciding on your founding board’s exact structure, know that the EIN process doesn’t require every detail nailed down—just your responsible party’s name and Social Security Number (or ITIN).

Most nonprofits will want to use the IRS’s online portal, which is only open during standard business hours. It’s simple enough for advocacy startups, the smallest community group, or a founder working solo on nights and weekends. When you apply online, you’ll get your EIN immediately—perfect for orgs eager to open a bank account, apply for a grant, or register for online fundraising platforms. From the second you finish, you’re ready to get real with your finances and bring supporters into your mission.

If online forms aren’t your thing, or if you run into issues with the website, the IRS provides solid alternatives. You can mail in Form SS-4 (the EIN application), which is the go-to route for organizations still waiting on certain paperwork to arrive, or for founders who prefer a more traditional approach. Mailing your application takes a bit longer—a few weeks—but it’s reliable, and there’s no penalty for taking your time. Those with easy access to a fax machine (think larger grassroots orgs or those with a home office) can also fax the form directly, trimming the turnaround to just under a week.

There are sometimes special circumstances, like international programs or those without a physical U.S. address. If that’s you, the IRS allows phone applications—a unique option where a helpful agent can walk you through the process. No nonprofit left behind, wherever you or your mission may be located.

What you’ll need to get your EIN is straightforward, but attention to detail counts. Your nonprofit’s legal name (matching exactly what’s on your state registration or articles of incorporation) is key. Use the address where you’d like to receive official mail—think renewal reminders, grant checks, or notices from IRS partners. If your org is in the process of establishing its structure—perhaps caught between a scrappy volunteer team and your first paid staff—select the person who is legally responsible as the “responsible party.” This doesn’t need to be forever, but in the early days, it’ll commonly be the founder, board chair, or executive director.

One thing to remember: the EIN application is always free. Any website or company offering to get your EIN for a fee is either providing a paid service on top of a free process or may not be legitimate. You don’t need to pay to play, and the IRS is crystal clear that its EIN application is provided at no charge. Savvy nonprofit leaders keep this in mind, especially when budgets are tight.

Mistakes can delay your setup, so take a second look at your paperwork before hitting submit. The most common hiccups? Nonprofits sometimes use a slightly different name than what’s on their incorporation docs, or they mistakenly file for multiple EINs if their paperwork isn’t approved right away. Make sure you save the confirmation letter (Form CP 575)—that document is gold when you open a bank account, apply for a foundation grant, or fill out future compliance forms. Store it digitally and in print if possible, so no one on your team has to dig for it under a deadline.

If all this paperwork feels daunting—especially if your focus is on programming, fundraising, or building community instead—know that you have options. Many states have nonprofit resource centers or networks that provide free workshops on getting set up. Your local SCORE chapter or library might offer hands-on help, and there’s always the approach of scanning the many free nonprofit startup guides online. If your organization is large or complex, or if you’re navigating a merger or fiscal sponsorship, consider looping in a nonprofit-specialized attorney or CPA for peace of mind. But for most, the EIN is a do-it-yourself milestone, signaling your organization’s arrival and readiness to handle funds responsibly.

Once you have your EIN, the real adventure of nonprofit finance begins—opening a bank account under the organization’s name. This is not only required for compliance but best practice for building transparency and audit-ready financials. Grantmakers, government funders, and individual donors all look for controls and professionalism—a clean separation of nonprofit and personal funds is the hallmark of both. Your EIN makes this possible, and eligible.

For the smallest nonprofits, even with funds moving through a single checking account, your EIN ensures you’re compliant and ready for the next step. But as you grow—adding programs, team members, or funders—it lays the groundwork for setting up accounts with more control and reporting. Many modern finance platforms, like Holdings, let you segment money by grant or program without ever needing a separate physical account at your bank. Your EIN is what gets that architecture up and running.

If you’re working with an outside bookkeeper or planning to use tools like QuickBooks, Sage Intacct, or Holdings, your EIN gets entered into all those systems. It acts like a bridge, making sure your reporting is consistent, filings are accurate, and your organization’s reputation is protected. Funders love when they see a nonprofit with their admin house in order, and your EIN is the unheralded hero of the whole setup.

There’s another benefit—applying for grants, whether city, state, or federal. Many foundations request (and sometimes require) your IRS EIN confirmation letter before they’ll consider your proposal. The ability to confidently fill out that field on a grant application can speed up reviews and remove one more hurdle to unlocking vital funding.

Don’t forget that some funders, especially government entities, will verify your EIN through IRS systems before releasing checks or direct deposits. Keeping your confirmation document stored alongside your bylaws and incorporation paperwork isn’t just helpful—it might actually unlock future funding on a deadline if a foundation asks for rapid proof.

Many grassroots nonprofits come together quickly—friends, neighbors, or local leaders responding to a need. In these cases, time is often of the essence. The online EIN application process suits this perfectly, helping teams go from community meeting to “official organization” in a single afternoon. That opens the partnership doors faster, gets you eligible for payment tools, and allows you to accept online gifts from day one.

EINs aren’t just for banking—they often unlock nonprofit rates with tech services, discounts at office supply stores, and allow you to sign up for nonprofit software. Major vendors use the EIN as their verification key, so you’ll want to have it handy as you’re applying for every donation platform or back-office service you intend to use.

For growing nonprofits, your EIN is the first link in the chain when automating finance. You can’t sync your new systems—expense tracking, accounting, payment solutions—without it. Once entered, it follows your data, ensuring your entire financial stack is built on the right legal foundation. This means fewer headaches at audit time and more time to work on your actual mission.

Nonprofits using platforms like Holdings enjoy another layer of peace of mind—once your EIN is set up in the platform, it stays there as you create new virtual accounts for different grants or programs. You never have to worry whether your financial software is aligned with your formal IRS status—the EIN you provide on day one ensures all subsequent reporting links back seamlessly.

As a side note, for organizations running payroll (or even considering paying a stipend or honorarium), an EIN is not optional. The government and payroll services need it to withhold and report taxes, file year-end forms, and keep your organization compliant. If your operations are run by volunteers now but you expect to hire in the next year, it makes sense to get your EIN in place even before the first paid hour of work.

What about fiscal sponsorship? Sometimes, new nonprofits operate under the umbrella of an established 501(c)(3) before launching as an independent legal entity. In those setups, your fiscal sponsor’s EIN is used until you spin out. But once you’re ready to stand alone, you’ll need your own EIN right away, for everything from opening accounts to signing grant agreements.

Organizations updating their names or legal structure should also know—IRS rules require you to get a new EIN if you undergo certain changes, like merging with another org or fundamentally altering your mission or structure. It’s smart to keep this in mind as you grow and shift, so your tax filings and reporting always match your real status.

A last but important point—EINs don’t expire. Once you receive your number, it’s attached to your nonprofit “for life.” Even if you close down programs or pause operations, that number stays with your organization and should be referenced on all historical documents. Lost your confirmation letter? The IRS can send another, but it’s always easier if you keep the original safe from day one.

As you look to the future, your EIN stands as the beginning, not the end, of building durable nonprofit finances. It means you can move money responsibly, empower staff or volunteers with cards, track spending by program or grant—and articulate your financial picture in any audit, annual report, or donor update. Platforms like Holdings make all of this smoother by keeping every dollar, every transaction, and every compliance step linked to your EIN from the start.

For nonprofits still searching for a banking home, make sure to keep your EIN ready. Some banks and financial partners might request not only your EIN, but also your formation documents, bylaws, and leadership roster. Having your EIN cleanly documented simplifies the process—no matter how large or small your budget.

If you ever switch banks or add on new payment or donation systems, the process starts with entering your EIN. It’s a single source of truth across every tool—from basic bank accounts to cutting-edge virtual cards for team spending. That’s why it pays to do it right at the start.

Is your nonprofit ready for its next chapter—applying for a foundation grant, adding grant-funded positions, or even just swapping out clunky financial apps for modern platforms like Holdings? Your EIN unlocks every step. Think of it as the universal password for responsible, transparent nonprofit money management.

Whether you’re a solo program founder with a coffee shop as your “office,” a grassroots group running bake sales and mutual aid, or a CFO at a large, complex organization, your EIN ties everyone together under one legal, auditable, and accountable roof. Get it right the first time, and you’ll only have to focus on what really matters—serving your community.

If you run into snags along the road—confusion about forms, mismatched names, uncertainty about responsible parties—don’t shrug and hope for the best. Reach out to local nonprofit support groups, scan trusted IRS resources, or even drop us a note. The steps are real, but the solutions exist, and it’s very doable no matter your team size.

And remember, as your nonprofit grows, your needs change. Simple is good at the start, but your EIN travels with you as you add complexity—segmenting funds by grant, rolling out virtual expense cards, or integrating with robust bookkeeping systems. Holdings was designed so that no matter how sophisticated things get, your EIN-centered profile keeps everything clean, aligned, and easy to audit.

Let’s be honest—navigating IRS forms isn’t most people’s favorite part of nonprofit life. But it doesn’t need to be a barrier, just a step. Take it on confidently, and you’ll gain the freedom to use every banking, grant, and expense management tool available to the modern nonprofit leader.

Your EIN is a small but mighty piece of your nonprofit’s origin story. It signals you’re open for good, ready to bank, fundraise, spend, and grow—all in a way that's above-board and grant-ready. Being able to track every dollar, every program, and every grant—with platforms like Holdings acting as an all-in-one or best-in-class add-on—starts with those first nine digits.

Whether you’re submitting your IRS application between meetings or making it the first agenda item of your board’s launch retreat, rest easy knowing that you’re building a foundation for stability, trust, and the strongest possible financial future. And whatever your next fundraising or operational milestone, your EIN will be right there with you—quiet, essential, and always the first step in opening the doors to your nonprofit’s full potential.