Oil & Gas Lease Taxes for a Non-Profit

My question is whether a non-profit 501-c-3 charitable organization is required to pay taxes on their oil and gas leases. We have received several mineral interests as donation and contributions and have secured leases on those properties. We do not file a federal tax return because of our non-profit status. The O&G companies are routinely deducting the taxes and forwarding them on, on our behalf. But are we required to pay those taxes?

Thank you for your input.

Dear Mr. Green,

If you are speaking of severance, production and/or ad valorum, I am sorry to say that your 501 C-3 does have to pay its share.

Prior to leasing in the future, contact a professional who might be able to get some of those items negotiated out for you.

I am currently a consulting mineral manager for a charitable foundation in southeast Texas.