The Nonprofit Finance Fund (NFF) conducted a survey to gain a better understanding of non-profit organizations in Los Angeles County. The survey was conducted to bring together the public, private, and non-profit sectors to drive positive change in Southern California. As a result of state legislation, the City of Los Angeles amended Section 21.22 of the LAMC to allow the Director of Finance to issue a tax-exempt registration certificate to charitable, religious, and non-profit institutions that are eligible for exemption under state or federal law. The Finance Office has three locations in the City of Los Angeles and a virtual public counter to better serve the needs of non-profits. Businesses are exempt from paying gross income tax if they are recognized as a non-profit, charitable, or religious organization under IRS Section 501 or State Tax Section 23701d.
Additionally, organizations that are recognized under IRS Section 501C and State Tax Section 23701d are exempt from paying business taxes regardless of how the tax is measured.