Summary: Learn how Tithely handles state sales tax, understand the difference between nonprofit status and tax-exempt status, and find out how to upload your tax exemption certificate.
Currently available for New York State only
This is a phased release. At this time, certificate uploads apply to organizations in New York State.
Signed up for Tithely after May 2025?
The steps to find the tax exemption section are different for accounts who signed up prior to May 2025. Follow the steps in this article instead.
Before you begin
- Federal vs. state exemption: Being a registered 501(c)(3) nonprofit only grants your organization federal income tax exemption. It does not automatically exempt you from paying state sales tax. Sales tax is set at the state level, so you must apply for and hold a state-issued sales tax exemption certificate under your state's laws.
- Tithely and ExempTax: To manage state-level exemptions, Tithely partners with ExempTax, a secure third-party compliance platform that collects and verifies tax-exempt certificates. You upload your certificate directly in your Tithely dashboard. ExempTax then reviews and validates it.
- Verify your name: Your church or organization name in Tithely must exactly match the legal entity name or "Doing Business As" (DBA) name on your tax-exempt certificate.
Certificate requirements
Before you upload, make sure your certificate meets ExempTax's validation criteria:
- Include Tithely: "Tithely" or "YourGiving Inc" must be explicitly listed as the seller or vendor on your sales tax certificate.
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Use Tithely's legal address: If your certificate asks for the seller's or vendor's address, enter Tithely's legal address:
901 Woodland Street, Suite 104
Nashville, Tennessee 37206 - Complete all fields: Every required field must be filled in, signed, and dated. ExempTax automatically rejects forms with blank or incomplete sections.
Step-by-step instructions
Check your status and upload your certificate
- Open the Tax exemptions page to see your current status. In the top right corner, select the Global Settings, then Billing, then Tax exemptions.
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You will see one of the following statuses:
Status or field What it means Tax Exempt Your certificate is approved, and you are not being charged sales tax. Taxable You are currently subject to sales tax. Pending Your uploaded certificate is under review. Approved / Rejected The final decision on your most recent certificate upload. Expiration Date The date your current certificate expires. -
Upload your tax-exempt certificate directly in the Tithely product, on the same Tax exemptions page.
- Wait for your notification. You will receive an in-app notice and an email from ExempTax telling you whether your certificate was Approved or Rejected.
- Review any rejection and upload a corrected file. If your certificate is rejected, ExempTax emails you a detailed notice with the specific reasons. The email prompts you to log in to a secure portal, where you can upload a new, corrected file.
Where sales tax applies
Sales tax rules are set by each state and can change. Tithely reviews them once a year, and we will tell you if sales tax starts to apply in your state or a state law changes.
States where you can upload an exemption certificate
Churches and 501(c)(3) organizations in these states can avoid sales tax by uploading a valid state exemption certificate. Select your state to open its official exemption resources.
- Maryland (MD)
- Massachusetts (MA)
- New York (NY)
- Ohio (OH)
- Pennsylvania (PA)
- Tennessee (TN)
- Texas (TX)
- West Virginia (WV)
States where nonprofits are not exempt
State law does not exempt nonprofits from sales tax on software in these states, so an exemption certificate cannot be used: Alabama (AL), Arizona (AZ), California (CA, starting January 1, 2027), Hawaii (HI), Iowa (IA), South Carolina (SC), South Dakota (SD), and Washington (WA).
Troubleshooting & FAQs
ExempTax emails you a detailed notice with the specific reasons. Common causes are a certificate that does not list "Tithely" or "YourGiving Inc" as the seller or vendor, blank or unsigned fields, or an organization name that does not match the name in Tithely. Follow the link in the email to upload a corrected file, or login to your Tithely account and update on the Tax Exemption page.
What address do I use for Tithely on my tax-exempt certificate?
When your sales tax exemption certificate asks for the seller's or vendor's address, use Tithely's legal address: 901 Woodland Street, Suite 104, Nashville, Tennessee 37206.
State certificates expire, often every 4 to 5 years. ExempTax monitors your expiration date and emails you 30 days before it to request a renewal. You will also receive a notice on the actual expiration date.
No. Neither Tithely nor ExempTax is authorized to refund sales tax that was collected before your certificate was approved. Upload your certificate to avoid future sales tax charges, and contact your state's Department of Revenue to request a refund for past charges.
Upload your certificate directly in your Tithely dashboard, on the Tax exemptions page. ExempTax is the secure platform Tithely uses to review and verify it. If your certificate is rejected, ExempTax's email links you to a secure portal where you can upload a corrected file.
Taxability can change when states pass new legislation or when Tithely completes its annual review. If we become newly required to collect sales tax in your state, we will tell you proactively and begin collecting it as soon as reasonably practicable.