TAX STATUS OF THE UNIVERSITY:

The University of California is NOT exempt from Sales Tax. For a discussion of California Sales and Use tax, please go to Sales and Use tax,.

Assignment of a Federal Taxpayer Identification Number (TIN) by the IRS does not grant tax-exempt status to a nonprofit organization. In order to establish its exemption from tax, an organization must file an Application for Exemption (Form 1023) with the IRS District Director for its region.

The University of California is exempt from Federal tax because of its status as an agency of the State of California under Article IX, Section 9, of the California State Constitution. The University also qualifies as an exempt organization under section 501(c)(3) of the Internal Revenue Code (IRC) as set forth in a September 8, 1982 letter signed by the IRS District Director (see Appendix A). This letter confirms the University's tax-exempt status as originally recognized by the IRS in a letter dated September 14, 1939.

The 1982 exemption letter also confirms that:

a)  The University is not required to file a Form 990, Return of Organization Exempt from Income Tax, because it is a State institution;

b) The University is required to file a Form 990-T, Exempt Organization Business Income Tax Return, if it has gross income during the year of $1,000 or more from an unrelated trade or business;

c)  Donors may deduct their contributions to the University from income in accordance with IRC Section 170, Charitable Contributions; and

d) Bequests and similar gifts to the University are deductible for Federal estate and gift tax purposes, as provided in the applicable provisions of IRC Sections 2055, 2106, and 2522.

Some Donors and granting agencies will require a 501(c)(3) letter with the Federal Employer ID Number (FEIN). There is no "501(c)(3) letter" for the local campus FEIN. We must use the UC system-wide 501(c)(3) letter, which displays the UC system-wide FEIN. Please do not use the system-wide FEIN for any purpose other than donor/grantor agencies. We have local "sub" ID numbers for all other purposes.