Nonprofit save money FUTA exempt grants
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
United States
501(c)(3) employers do not pay federal unemployment tax (FUTA), and in many states can choose to reimburse actual benefits instead of paying state UI tax (check your state). Tax-exempt small employers can get a refundable health care credit of up to 35% of premiums (Form 8941). Nonprofit postage rates are available from USPS (PS Form 3624). For federal grants, register in SAM.gov and Grants.gov. Many states exempt nonprofits from sales tax; apply to your state.
Official source: irs.gov