NAICS Code for Non Profit Organizations

Updated: 2025
Reviewed By: SICCODE.com Industry Classification Review Team

“Nonprofit” is a legal and tax status—not an industry. NAICS classifies nonprofit organizations by primary activity (what the organization does day-to-day), which is why nonprofits can fall into different NAICS categories such as grantmaking, health advocacy, environmental conservation, civic organizations, and membership associations.

The most defensible way to select a nonprofit NAICS code is to identify the organization’s revenue/output-dominant activity, confirm the destination definition and exclusions, and document a short internal classification note for repeatability. Use the NAICS Code Lookup Directory to verify code boundaries.

For NAICS governance, definitions, and methodology context, see the NAICS Classification & Reference Center.

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Status vs. activity Most common confusion

Pro-tip: NAICS answers “What does this organization do?” while IRS status answers “What is this organization for tax purposes?”

  • Nonprofit status (e.g., 501(c)(3), 501(c)(4), 527) is determined by IRS rules and organizational purpose.
  • NAICS code is determined by the organization’s primary operational activity (services delivered, programs run, or membership function).
  • Risk if you choose wrong: misrouting in databases, incorrect benchmarking peer sets, and inconsistent reporting across partners and systems.

How to choose the correct nonprofit NAICS code

Rule of thumb

  • Choose the code that matches the primary activity that consumes the most resources and represents the organization’s core output.
  • Verify the definition and exclusions (avoid keyword-only matching).
  • Document the decision (a one-paragraph note is usually sufficient for repeatability).

For NAICS fundamentals, see What Is a NAICS Code?.

Quick verdict

  • Grantmaking entity: start with grantmaking categories (foundations and giving services).
  • Advocacy-first entity: start with social advocacy or human rights categories.
  • Membership-first entity: start with business or professional organizations.
  • Religious institution: start with religious organizations.

Validate by searching the NAICS Code Lookup Directory.

For code boundary interpretation (included vs. excluded activities), see NAICS Included vs. Excluded Activities.

Visualizing the classification logic

Question If YES If NO
Is the primary output distributing grants? Start with grantmaking codes (foundations and giving services) and confirm definition fit. Continue to the next question.
Is the primary output advocacy / rights / policy influence? Start with social advocacy or human rights categories and confirm included/excluded activities. Continue to the next question.
Is the organization membership-led (trade, profession, civic)? Start with membership association categories (business, professional, civic/social). Continue to the next question.
Is the organization religious services led? Start with religious organizations. Use the directory to locate the best-fit definition by activity.

Key NAICS codes commonly used for nonprofits

The codes below frequently appear in nonprofit classification workflows. Each link opens the SICCODE.com directory page for definition review and boundary confirmation.

Navigating exempt organizations and tax benefits

Many nonprofits seek tax-exempt status to support mission delivery and compliance. IRS categories are separate from NAICS classification, but they are commonly referenced together in governance, reporting, and audit contexts.

IRS categories (examples)

Best practice

  • Maintain both fields in your records: NAICS (activity) and IRS category/status (tax).
  • Do not infer NAICS from tax status (and do not infer tax status from NAICS).
  • Keep documentation for code assignment to preserve consistency across years and teams.

Common misclassifications and risk control

Most common errors

  • Grantmaking vs. operating programs: selecting a foundation code when the organization primarily runs direct services.
  • Advocacy vs. membership: choosing a social advocacy code when the primary output is member support and standards.
  • Cause-based guessing: classifying by mission theme (e.g., “education”) instead of operational activity.
  • Keyword-only matching: selecting the closest-sounding label without checking exclusions.

Risk control checklist

  • Identify the primary activity (resources consumed + output delivered).
  • Confirm boundaries (included/excluded activities) in the destination definition.
  • Record a short classification note (why this code fits, and what was excluded).
  • Re-check after change (new programs, restructuring, mergers, or expansion).

FAQ

  • Why isn’t there a single NAICS code for “nonprofits”?
    Because NAICS classifies organizations by primary activity. “Nonprofit” is a legal/tax status, while NAICS describes what the organization does operationally.
  • What is the most defensible way to choose a nonprofit NAICS code?
    Identify the organization’s primary activity, confirm the destination definition and exclusions, and document a short internal classification note for repeatability.
  • How do I decide between grantmaking and social advocacy codes?
    Choose grantmaking when the primary output is distributing grants; choose advocacy when the primary output is advocacy, rights, policy influence, or public education for social change.
  • Where can I verify NAICS code definitions and boundaries?
    Use the NAICS Code Lookup Directory to validate definitions and included/excluded activities.

Need to verify a nonprofit NAICS code defensibly?

Use the directory to validate the destination definition and exclusions based on the organization’s primary activity, then preserve a short classification note for traceability.

Open NAICS Code Lookup Directory Contact

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