Nonprofit Status

Understanding AHA’s Group Exemption: Your Path to 501(c)(3) Status

What is a group exemption? AHA is a 501(c)(3) organization with group exemption status with the IRS. This arrangement is an administrative convenience for both the IRS and organizations with many affiliated entities. As a “subordinate organization” under AHA’s group exemption, your group can receive 501(c)(3) status without filing a separate application with the IRS. Consequently, your group will not receive an individual exemption letter from the IRS, you’ll use the AHA’s instead, which we will provide to you.

Who qualifies for AHA’s group exemption? Only legitimate nonprofit organizations that align with AHA’s purpose and mission are eligible for status through our group exemption. AHA reserves the right to reject any organization that does not meet our requirements or purpose for nonprofit status.

How to Obtain NonProfit Status via AHA:

  1. Online application first. Submit your application through our online form, linked here.
  2. Adopt bylaws that comply to AHA and IRS requirements. 
  • Use ours as an example! Here is a link to the AHA bylaws. This can be a great template to work from. Due to IRS regulations, your bylaws must be substantially similar to ours. 
  • Essentials for IRS compliance:
  1. A purpose statement that is similar to AHA’s mission
  2. A statement affirming that your organization is affiliated with AHA
  3. A clear definition of your board of directors: no fewer than three unrelated individuals, elected at least every other year
  4. A guideline for how your board members will be elected and what their terms will be
  5. A statement that your fiscal year will be January 1 – December 31 (to match AHA’s)
  6. A Conflict of Interest Policy with disclosure requirements for your board. 

3. Obtain an EIN: Secure a federal employer identification number (EIN) through the IRS. Click here to learn how to apply for an EIN. 

4. Draft a request letter: Draft a letter, signed by an officer, requesting tax-exempt status under the AHA group exemption. It must include (ideally in bullet points)…

  • Your EIN, official name, and address
  • Your fiscal year (January 1 – December 31)
  • A statement that your organization is not a private foundation. 
  • A statement that your organization has not been previously rejected for tax-exempt status
  • A statement that your organization agrees to abide by AHA and IRS nonprofit policies
  • A statement of purpose reflecting your bylaws

5. Submission: Submit your request letter, bylaws, and conflict of interest policy to [email protected]. 

6. Review and Approval: Your documents will be reviewed, and you will be notified of any necessary changes. Upon approval, you’ll receive a confirmation letter stating that your chapter is exempt from federal tax under our group exemption. We will send a copy of the AHA’s federal nonprofit determination letter for your records. At times, both letters will be needed to prove nonprofit exemption when working with local government or corporate entities. 

Know the lingo! “Through the American Humanist Association, our chapter is a tax-exempt nonprofit organization.”