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—money that could be going back 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.

This applies to:

• Tangible personal property
• Certain services
• Digital property (not including some utility and vehicle-related expenses)

📄 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

Who Qualifies?

To qualify, you must:

• Be a 501(c)(3) nonprofit
• Have a sales tax refund account ID issued by the NC Department of Revenue (starts with “72”)
• Use the purchase to carry out your exempt mission

If your organization hasn’t registered, you’ll need to provide:

• Your EIN
• Your IRS 501(c)(3) determination letter
• Your NTEE code
  (Look up at IRS Exempt Organizations Tool)

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

When to File and What’s the Deadline?

Refunds are filed semiannually:

Period Covered: Filing Deadline

‍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

What Needs to Be Included?

To file Form E-585, you must:

• Break down sales tax by State and Food/County/Transit
• List qualifying purchases and corresponding sales tax
• If purchases were made in multiple counties, complete Form E-536R
• Keep all receipts and invoices on file for 3 years (do not mail them)

Contractor purchases (e.g. materials used on your property) must be supported by a certified statement from the contractor.

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 Nonprofit Sales Tax Refunds

To stay on top of your refund process:

• Pay directly from your organization (no staff reimbursements)
• Always ask for itemized receipts that include sales tax and vendor info
• Use a centralized system like Givefront to store receipts
• Set calendar reminders for April 15 and October 15
• Keep all documentation for 3 years in case of audit

Reclaim What’s Yours—Automatically

North Carolina’s refund process is generous—but only if you know how to use it. The effort is worth it, but the paperwork doesn’t have to be painful. Givefront lets you reclaim your refund without spreadsheets, binders, or last-minute stress.

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📩 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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