Nonprofit vs. Tax-Exempt

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In the nonprofit legal community, many lawyers use legal jargon terms that seem to exist for the sole purpose of confusing the lay person. One such example of confusing legal jargon is the difference between nonprofit and tax-exempt. While many may, unknowingly, use these terms interchangeably, they are actually two different and distinct legal statuses at both the state and federal level.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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