The University is exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3) because of our educational purpose. This is often referred to as our “nonprofit status.” University departments may receive requests for proof of our nonprofit status. If so, provide a copy of our IRS 501(c)(3) determination letter (see link below). Further, the University is tax-exempt under IRC Section 115 as an agency of the State of Virginia.
IRS 501(c)(3) determination letter (for a copy, click here)
Federal Tax Identification Number
The University’s federal tax identification number is 54-6001756. Use of the University’s tax identification number is limited to departments, organizations and accounts authorized by the Assistant Vice President for Finance or his designee. Generally, most student organizations and clubs conduct business through a separate federal tax identification number.
Sales Tax Exemption
The University, as a state agency, does not pay state sales and use tax with certain exceptions (Code of Virginia, Section 58.1-609.1). All purchases made on behalf of the University with institutional funds should be made using the University’s tax exempt certificate (for a copy, contact Accounts Payable at 568-7397), regardless of the method of payment. The University’s sales tax exemption number is 208 069909-8.
Contributions to the University
The University’s Advancement Office records and receipts all charitable gifts to the James Madison University Foundation, a not-for-profit corporation, exempt from federal taxation under IRC Section 501(c)(3) and eligible to receive charitable contributions under IRC Section 170(b)(2). The Foundation was established in 1969 to act on behalf of the university as fiduciary in the administration and fiscal management of private support received from the university’s donors. The JMU Foundation deposits, invests and disburses private donations.
Unrelated Business Income Tax (UBIT)
The University’s federal tax exempt status does not apply to “unrelated business activities.” On these activities, the University is required to report and pay federal income tax. A copy of the University’s Exempt Organization Business Income Tax Return (Form 990-T) is available upon request. (Contact the Financial Reporting Office, MSC 5715, Harrisonburg, VA 22807).
For more information on Unrelated Business Income Tax, click here.
Payroll Tax Information
Contact the Payroll Services Office for payroll tax information (http://www.jmu.edu/payroll/taxinfo.shtml)