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This study aims to analyze the taxation of non-profit organizations and foundations according to the Turkish Legislation. In the first part the basic concepts of tax, civil society, non-profit organization and foundation as well as the process of these concepts historical development are explained and elaborated whereas in the second part the taxation of non-profit organizations and foundations, tax-exemption of the foundations, charities and tax incentives provided for the foundations, the duties of and the required documents for these institutions are investigated. The taxation of non-profit organizations and foundations is similar to that of natural persons to a great extent. Basically, non-profit organizations and foundations are exempt from tax liability due to their legal personality but they are obliged to tax paying in case of actions that are subject of a tax. The economic enterprises established by non-profit organizations and foundations for specific purposes are also liable to tax obligation. The crucial issue in taxation of non-profit organizations and foundations is the priviliged status bestowed upon them in order to provide tax advantages. A kind of tax immunity is warranted to non-profit organizations and foundations as well as to the economic enterprises established by them via consignment of the ?public good organization to the first and tax-exempt foundation? to the latter by the Cabinet. This study explores the conditions under which non-profit organizations and foundations are eligible for the said tax exemption and an analysis of the afromentioned situation is presented within the framework of Turkish Legislation along with an in-depth examination of the current practices.