Understanding NTEE codes: what they are and how to use them

And if you weren’t totally sure what it meant, you’re not alone.

NTEE codes (short for National Taxonomy of Exempt Entities) are how the IRS and other groups classify nonprofit organizations. It’s like giving your nonprofit a category or label based on what you do, whether that’s education, health care, animal rescue, or something else entirely.

That little code you get? It’s more important than it looks. Funders use it. Researchers use it. And yes, the IRS uses it to figure out who you are and what you’re all about. So having the right one matters. A lot.

Understanding the national taxonomy of exempt entities (NTEE)

Let’s break down what the NTEE system actually is. At its core, the National Taxonomy of Exempt Entities is just a way to organize and group all the different types of nonprofits that exist in the U.S. It was created by the National Center for Charitable Statistics (NCCS) and adopted by the IRS to help keep things standardized.

Think of it like sorting books in a library. There are broad categories (like health, education, or arts), and under each one, there are more specific types. For example, under “Health,” you might find hospitals, mental health organizations, or public health clinics. Every nonprofit fits somewhere in this system, even if it’s a small, local group with a unique mission.

Most organizations are assigned just one NTEE code when they first get their tax-exempt status. That code helps funders, government agencies, and data analysts understand what kind of work the organization does without digging through a full mission statement or website.

This system isn’t perfect, but it’s widely used, and knowing how it works makes it way easier to find your fit, explain your mission, and get noticed by the right people.

The structure of NTEE codes

Let’s get into how NTEE codes are actually built. They might look random at first, but there’s a clear system behind them. Each code has one letter followed by two numbers, like A23 or B11.

• The letter stands for a broad category, called a major group. For example:
  
  • A = Arts, Culture & Humanities
  • B = Education
  • E = Health
  • L = Housing
  • W = Public & Societal Benefit
  • (There are 26 total major groups, one for each letter A–Z.)
• The two numbers narrow it down to a specific focus within that group.
  So, if B is for Education, then B24 might mean “Elementary & Secondary Schools,” while B82 could be “Scholarships & Financial Aid.”

Some codes also include an IRS Activity Code, which is separate but sometimes used alongside your NTEE code. These give even more detail about what your nonprofit does, but they’re older and less commonly used now.

The main takeaway? Your full NTEE code gives a quick snapshot of who you are and what you focus on. It’s like your nonprofit’s category in a giant directory, and getting it right helps the right people find you.

How to find your nonprofit’s NTEE code

If you're not sure what your organization's NTEE code is, don’t worry, it’s actually pretty easy to find.

The first place to check is your nonprofit’s IRS determination letter. That’s the official letter you got when you were approved for tax-exempt status. The code might be printed right on it, especially if you filed using Form 1023 (the full version). If you used the shorter 1023-EZ, the code may have been selected automatically based on how you described your mission.

Another option is to look up your organization in a public database like the NCCS Exempt Organization Search or on Guidestar (now part of Candid). These platforms often list your assigned NTEE code alongside your nonprofit’s name and EIN.

Still can’t find it? You can call the IRS directly or ask a nonprofit expert (like us at Harness) to help walk you through it.

The important thing is this: your NTEE code isn’t just for forms. It affects how people find you, how funders evaluate you, and how clearly your mission comes across. Knowing your code, and making sure it fits, is a small step with a big impact.

How to choose the right NTEE code

Picking the right NTEE code isn’t just about checking a box. It’s about choosing the category that best reflects your nonprofit’s mission, so funders and partners instantly understand what you do.

Here’s how we recommend thinking about it, especially if you’re just getting started or your mission has shifted over time.

1. Start with your “why.”
   What’s the core reason your organization exists? If you had to explain it in one sentence to someone who had never heard of you, what would you say? That should point you toward the right major group, like health, education, housing, or arts.
2. Zoom in.
   Once you’ve figured out your broad category, look at the more specific options within it. Each group has dozens of subcategories. For example, if you’re in education, are you focused on early childhood, adult literacy, or scholarships?
3. Think about long-term fit.
   Choose a code that not only reflects what you’re doing now but also makes sense for where you’re headed. Some orgs pick a narrow code and outgrow it within a year.
4. Avoid the “miscellaneous” trap.
   Codes that end in “99” often mean “other” or “not elsewhere classified.” If you can avoid using one of those, do it. A more specific code usually gives you more visibility and credibility.

At Harness, we’ve helped plenty of nonprofits through this process. It’s not always obvious, and it’s okay to ask for help. The goal isn’t perfection, it’s clarity. The better your code fits, the easier it is for funders, partners, and supporters to align with your cause.

How to change or update your nonprofit’s NTEE code

Sometimes your mission evolves. Maybe you’ve added new programs, shifted focus, or narrowed your impact area. When that happens, your NTEE code might need to change too, and yes, you can update it.

Here’s how the process typically works:

1. Decide if a change is needed.
   If your original code no longer reflects your work, it’s time to look into changing it. A mismatch can confuse funders, affect search visibility, or make your org seem out of sync with its mission.
2. Contact the IRS.
   There's no special form just for changing your NTEE code. Instead, you’ll need to send a letter to the IRS EO (Exempt Organizations) Determinations Office explaining the change and why it’s needed. Include your EIN, your old and new NTEE codes, and a short description of your mission and programs.
3. Wait for confirmation.
   The IRS doesn’t always send a confirmation letter, but you can follow up by phone or mail if needed. It may take several weeks for updates to reflect in their system and public databases.
4. Update other platforms.
   Once the change is processed, make sure your new code shows up correctly on NCCS, Guidestar, or any databases that list your nonprofit. If it doesn’t, you may need to contact them directly with proof of the change.

Making this kind of update doesn’t happen often, but it’s an important move if you’ve grown in a new direction. It shows your nonprofit is serious about clarity and alignment, and it helps the people who matter most understand your purpose.

Common mistakes and pitfalls to avoid

After working with hundreds of nonprofits, we’ve seen a few common NTEE code mistakes pop up again and again. Most of them are easy to avoid once you know what to watch for.

1. Choosing a code too quickly.
   It’s tempting to pick the first one that “sort of fits” and move on. But a rushed decision can lead to years of confusion. Take the time to explore the full NTEE list and find the best match.
2. Picking something too broad, or too narrow.
   A general code like “Education: Other” (B99) won’t tell funders much about what you actually do. But going too niche can make it harder for people to find you. Aim for specific, but not obscure.
3. Forgetting to update after a mission change.
   Your org started with youth mentoring. Five years later, you’ve shifted to workforce development, but your NTEE code still says “Youth Services.” That mismatch can hurt funding opportunities. Keep it current.
4. Relying only on the IRS selection.
   If you used Form 1023-EZ, your code might’ve been automatically chosen based on limited info. That’s not always accurate. Check it, and request a change if it doesn’t reflect your real mission.
5. Assuming no one uses the code.
   This might be the biggest myth. Funders, grant databases, research tools, they all filter by NTEE codes. A bad fit won’t just look sloppy. It can block real opportunities.

At Harness, we’ve helped partners clean up messy codes more times than we can count. It’s one of those small details that can quietly hold your organization back, or set you up for growth.

How donors, grantors, and researchers use NTEE codes

Your NTEE code isn’t just for the IRS. It’s a behind-the-scenes tool that shapes how people discover, evaluate, and support your nonprofit.

Funders and grantmakers

Most large foundations and grant portals sort applications by NTEE code. They want to compare apples to apples, so if you’re applying for a health-related grant but your code says “Public Safety,” you might get filtered out before anyone reads your story.

Donors

Major donors and donor-advised funds often rely on nonprofit databases like Candid (Guidestar) to vet organizations. NTEE codes help them narrow down causes they care about. If your code doesn’t match your mission, you could lose visibility, and trust.

Researchers and policymakers

Groups like the Center for Charitable Statistics or public policy analysts use NTEE codes to track trends across the nonprofit sector. If your org is misclassified, the broader data about your field gets skewed, and you might miss out on reports or opportunities aimed at your true focus area.

This is why getting the code right really matters. It’s a quiet detail that sits in the background of a lot of decisions. But when it’s aligned with your mission, it builds credibility, trust, and access.

Comparing NTEE to other classification systems

While the NTEE system is the most common way to classify nonprofits in the U.S., it’s not the only one out there. Depending on where you’re located or who you’re working with, you might run into other systems too.

ICNPO: the international version

Globally, many researchers and policymakers use the International Classification of Nonprofit Organizations (ICNPO). It’s kind of like the NTEE system, but broader and designed for cross-country comparisons. You probably won’t need it for day-to-day operations, but if you’re applying for international funding or participating in global research, it may come up.

NAICS and SIC codes

These are business classification systems often used in economic reports and by government agencies. Some nonprofits are asked to provide a NAICS (North American Industry Classification System) code, especially if they operate like a social enterprise or apply for contracts. It’s not a replacement for NTEE, but sometimes it’s used alongside it.

Your takeaway?

If you’re a U.S.-based nonprofit, the NTEE code is still the main one that matters for IRS records, public databases, and most funders. But knowing what else is out there can help if you're working across sectors or countries.

Interactive resources and downloadable NTEE code list

If you’re looking for a complete list of NTEE codes, or trying to figure out where your organization fits, there are a few helpful tools out there.

Where to find the full NTEE code list

The easiest way is through the National Center for Charitable Statistics (NCCS). They publish a detailed breakdown of all NTEE codes, including the major groups (A–Z) and their subcategories. You’ll see both the code (like “P20”) and a short description (like “Human Service Organizations”).

You can also check the IRS website, which includes NTEE code definitions as part of its guidance for Form 1023 applicants. It's more technical, but still helpful.

Downloadable list

If you want something you can print or save, we recommend downloading a PDF version of the full NTEE code list. Some databases also let you export a spreadsheet, which is useful if you're managing multiple organizations or building reports.

Tools that make this easier

Sites like Guidestar (Candid) and the X4i NTEE Code Builder offer search tools that help you find and explore codes interactively. You just enter a few keywords or describe your mission, and they suggest the best-fit code.

We recommend bookmarking at least one of these tools. Having quick access to the full list makes it easier to double-check your classification, or explore alternatives as your mission evolves.

Stay organized

We get it, NTEE codes can feel like a small detail. But in our experience, they’re one of those behind-the-scenes pieces that can quietly shape your nonprofit’s future.

The right code doesn’t just help you stay organized. It opens doors. It gets you in front of the right funders, makes it easier for donors to understand your mission, and helps your organization show up where it matters most.

If you’re just starting out, take the time to get your classification right. And if you’ve been around for a while, it’s worth checking to make sure your code still matches the work you’re doing today.

And if you ever feel stuck? You don’t have to figure it out alone. At Harness, we’ve helped hundreds of nonprofits fine-tune their strategy, from picking the right NTEE code to building smarter, more sustainable fundraising systems.