When you apply for recognition of tax-exempt status, you’ll be asked about your nonprofit’s purpose and activities. Behind the scenes, the IRS assigns your organization a classification code. This is known as the NTEE code—short for National Taxonomy of Exempt Entities.

What Is an NTEE Code?
The NTEE system was developed by the National Center for Charitable Statistics and is used by the IRS and other agencies to group nonprofits into broad categories based on their mission and programs. Each nonprofit is assigned a three-character code, such as “B20” for elementary and secondary education or “E62” for health services like emergency care.

Why It Matters

• IRS Data – The IRS uses NTEE codes to organize its database of exempt organizations.
• Funders and Researchers – Philanthropy databases, grantmakers, and watchdog groups often filter nonprofits by NTEE code when analyzing trends or searching for grantees. If your NTEE code does not align with your mission, some funders may exclude you from consideration or deny funding outright.
• Public Disclosure – Your organization’s NTEE code appears in the IRS Exempt Organizations Business Master File, which is publicly available.

How NTEE Codes Are Assigned
Nonprofits do not formally select their own NTEE code. The IRS assigns one based on the activities described in the exemption application (Form 1023 or 1024). Sometimes, the assigned code may not perfectly capture an organization’s work, especially if the mission spans multiple categories.

Changing an NTEE Code
Historically, nonprofits had no mechanism to change their NTEE code. That has changed. Today, a nonprofit can request a new code if its mission or primary activities have shifted.

How to Request a Change
To formally change your NTEE code with the IRS, you must submit a written request. Here’s the process:

1. Draft a written request including:
   • Your nonprofit’s official name
   • The Employer Identification Number (EIN)
   • The NTEE code currently assigned
   • The new NTEE code you are requesting
   • An explanation of why the change is needed, describing the shifts in your mission and activities
2. Include supporting documents – such as a revised mission statement or updated program descriptions.
3. Mail your request to the IRS Correspondence Unit:Internal Revenue Service Attn: Correspondence Unit P.O. Box 2508, Room 6403 Cincinnati, Ohio 45201
4. Note the change on Form 990 – While optional, mentioning the new code in your annual filing helps bring the update to the IRS’s attention.

Before You Submit a Request

• Review the code definitions – Ensure the new classification accurately reflects your purpose. Full NTEE descriptions are available through the Urban Institute.
• Keep records – Retain copies of all correspondence with the IRS.

Examples of NTEE Codes

• A23 – Cultural/Ethnic Awareness
• C27 – Recycling
• D20 – Animal Protection and Welfare
• F22 – Community Health Systems
• P20 – Human Service Organizations

Takeaway
The NTEE code is more than an administrative label. Funders often rely on it to identify eligible grantees. If your code doesn’t match your mission, you may miss out on funding opportunities—even if your work is squarely within a foundation’s priorities. Since nonprofits can now request changes, it is wise to review your assigned NTEE code and ensure it reflects what you actually do.

Ellis Carter is a nonprofit lawyer with Caritas Law Group, P.C. licensed to practice in Washington and Arizona. Ellis advises nonprofit and socially responsible businesses on federal tax and fundraising regulations nationwide. Ellis also advises donors concerning major gifts. To schedule a consultation with Ellis, call 602-456-0071 or email us through our contact form.