Does being a nonprofit mean the organization is exempt from federal and state taxes?

No. To become exempt, the organization must meet certain requirements and formally apply with both the IRS and the state in which it is seeking an exemption. The IRS and the state of Texas require certain provisions to be included in the governing documents of the organization. They also each require formal applications requesting tax exempt status. Exemption from federal income taxes is determined by the IRS. Exemption from Texas state taxes is determined by the Texas Comptroller of Public Accounts.

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