What Is Form W-9?
The IRS Form W-9, officially titled “Request for Taxpayer Identification Number and Certification,” is a fundamental tax document for collecting information from contractors. This simple form helps organizations gather the correct taxpayer identification number and other essential details needed for tax reporting.
Organizations complete the form in its entirety, while contractors complete only the first page; the rest contains instructions and notices explaining backup withholding requirements and other IRS code sections. The primary purpose of Form W-9 is to provide the needed information for completing Form 1099, which reports miscellaneous income and non-employee compensation to the Internal Revenue Service.
When Do Nonprofits Need W-9s?
Your organization will typically file W-9s in two different situations.
Obtaining W-9s from Contractors
When your nonprofit hires independent contractors — like consultants, freelancers, or service providers — you’ll need their tax information. Instead of completing a W-9 yourself, you’ll ask your contractors to fill one out.
You should request a W-9 when the service provider:
- Isn’t your employee
- Is working as an individual, partnership, or through another business entity
- Will deliver services related to your organization’s operations
- Will be paid $600 or more during the calendar year
Smart nonprofit managers collect W-9s at the beginning of contractor relationships rather than waiting until tax season approaches. For ongoing partnerships, you can keep the same W-9 on file for multiple years, unless the contractor notifies you of changes to their information.
Providing Your Nonprofit’s W-9
Your nonprofit may also find itself on the other side of this equation. If another organization pays your nonprofit for services — perhaps for training workshops, consulting, or program implementation — they’ll likely request that you complete a W-9. This helps them properly report payments made to your organization.
How Does a Nonprofit Exempt Organization Fill Out a W-9?
If you need to complete a W-9 for your organization, follow these seven straightforward steps.
1. Put Your Legal and Common Names
Start by entering your organization’s legal name in Box 1. This should match exactly what appears on your incorporation documents and IRS filings. If your nonprofit operates under a different name (sometimes called a “doing business as” or DBA name), include that in Box 2.
For instance, if your formal name is “Metropolitan Youth Development Coalition” but everyone knows you as “Metro Youth,” you’d put the full legal name in Box 1 and the shortened version in Box 2.
2. Indicate Your Tax Type
In Box 3, your nonprofit must specify its federal tax classification from the following options:
- Individual/sole proprietor
- C corporation
- S corporation
- Partnership
- Trustee/estate
- Limited liability company
- Other
3. Check the Backup Withholding Box
Box 4, the exempt payee code, relates to backup withholding exemptions. Most nonprofit organizations will leave this box empty, as it primarily applies to specific financial transactions like dividend payments or broker dealings. However, it’s worth reviewing the exemption criteria in the form instructions to confirm this applies to your situation.
