Tax-exempt organizations are entities that are exempt from paying certain taxes, such as federal income tax or state and local sales tax, because of their status as a nonprofit or charitable organization.

Tax-exempt organizations can include a wide range of entities, such as charities, religious organizations, educational institutions, and social welfare organizations. In order to qualify for tax-exempt status, organizations typically need to meet certain criteria and apply for recognition from the relevant tax authorities.

Tax-exempt organizations may also be subject to certain restrictions on their activities, such as limits on political lobbying or restrictions on private benefits.

The tax-exempt status of organizations can have significant financial and legal implications, both for the organization itself and for donors or supporters who may be eligible for tax deductions on their contributions.