For nonprofits in North Carolina, tax-exempt status doesn’t always mean you’re exempt from paying sales tax. In fact, unless you take action, your organization could be paying 6.75% to 7.5% extra on everything from office supplies to program costs, That is money that could be reinvested directly into your mission.

Fortunately, North Carolina offers a semiannual refund process through Form E-585 for qualifying 501(c)(3) organizations. While this can add up to thousands of dollars saved per year, many nonprofits never claim it due to paperwork, confusion, or lack of awareness.

Here’s exactly how to make sure your nonprofit gets every dollar it’s entitled to, and how Givefront can make the process seamless.

What Is the North Carolina Nonprofit Sales Tax Refund?

Under NC Gen. Stat. § 105-164.14(b), qualifying nonprofits can request a refund of state, county, and transit sales and use taxes paid on purchases that support the organization’s mission.

📄 The official refund form is:
Form E-585 – Nonprofit and Governmental Entity Claim for Refund

🧾 You may also need to complete:
Form E-536R – County Sales and Use Tax Schedule if your purchases span multiple counties.

What Can Be Refunded?

You can claim refunds on:

• Office furniture and equipment
• Program supplies
• Marketing, printing, and software
• Building materials used by contractors on nonprofit-owned property
• Qualifying food items (2% food tax)

You cannot claim refunds on:

• Utilities (electricity, gas, telecom)
• Motor vehicles or related fees
• Alcohol or tobacco
• Prepared food taxes, lodging taxes
• Travel reimbursements paid to staff

Full list of exclusions:
NC DOR Sales and Use Tax Bulletin – SUTB 74-3

What Nonprofits Qualify for the Refund?

To qualify for the North Carolina nonprofit sales tax refund, your organization must be recognized as a 501(c)(3) and have a sales tax refund account ID issued by the NC Department of Revenue, which begins with “72.” Purchases must also directly further your exempt mission.

If you have not registered before, you will need to provide your EIN, your IRS determination letter, and your NTEE code (which can be looked up through the IRS Exempt Organizations Tool). All application materials should be mailed to:

📬 Mail application materials to:
NC DOR Nonprofit Sales and Use Tax
PO Box 25000
Raleigh, NC 27640-0640

Filing Deadlines and Process

Refunds are filed semiannually:

‍January 1 – June 30: October 15 of the same year

July 1 – December 31: April 15 of the following year

You cannot:

• File claims for multiple periods on one form
• File for refunds more than 3 years after the original deadline

When filing Form E-585, you will need to separate sales tax by category (state, food, county, and transit) and list qualifying purchases with their tax amounts.

If your organization made purchases in multiple counties, Form E-536R will also be required.

Receipts and invoices should not be mailed but must be retained for at least three years in case of audit. If contractors made purchases for building projects, a certified statement from the contractor must be included.

How Givefront Makes Refunds Automatic

At Givefront, we’ve worked with hundreds of nonprofits to automate this exact process—saving them from hours of administrative work every 6 months.

Here’s how we help:

• Automatically collect receipts by text or email
• Extract sales tax from each receipt
• Categorize purchases by county and by eligible vs. ineligible
• Track food vs. general vs. transit tax in real time
• Pre-fill your E-585 and E-536R so all you have to do is review and sign

Many of our organizations recover $3,000 to $15,000 per year, often without realizing how much they were leaving on the table before.

Best Practices for North CarolinaNonprofit Sales Tax Refunds

To ensure your organization receives the maximum refund, make all purchases directly through the nonprofit rather than staff reimbursements, request itemized receipts that clearly show sales tax and vendor details, and keep documentation organized for at least three years. Setting reminders for the April 15 and October 15 deadlines ensures no filing window is missed. Using a centralized system such as Givefront helps nonprofits stay compliant without relying on binders and spreadsheets.

Reclaim Your Refund Without the Hassle

The North Carolina nonprofit sales tax refund is a powerful way to reduce costs, but many organizations fail to claim it. By understanding eligibility requirements, filing deadlines, and proper documentation, your nonprofit can recover thousands of dollars every year. With Givefront, the process becomes effortless, allowing you to reclaim what is yours and focus fully on your mission.

📩 Ready to start saving?
Let Givefront handle your nonprofit’s sales tax refund process.

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📧 Email us at contact@givefront.com

🌐 Visit www.givefront.com/demo to book a demo today

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