Information About Tax-Exempt Status

In response to funders who often say they fund only 501(c)(3) organizations, libraries have questions about this designation, since public libraries typically do not have the IRS 501(c)(3) tax-exempt status determination letter. Public libraries are typically tax-exempt as a governmental unit as a subsection under the 501(3)(c) code and funders will often accept applications with a letter from the city attorney stating something to that effect. 

Keep in mind that the funding body with the grant funds decides what status an applicant is required to have in order to be eligible for consideration. A funding body's decision usually depends on its own IRS status and what type of organizations it is allowed to fund. Contact the funding body to verify what status is required and the documentation it requires for establishing that status. If the funding body says, "organizations without a 501(c)(3) exempt status are excluded from consideration," you could still contact the funding body to ask if a public library would be eligible for the grant and explain your tax-exempt status as a governmental unit, 170(B)(1)(a)(v) under 501(3)(c). The funding body has the final say on which applicants are eligible for consideration.