As a donor, your desire to support causes that matter is commendable. To ensure that your contributions make a difference and are tax-deductible, it’s essential to verify the IRS 501(c)(3) status of any charity you consider supporting. This page will guide you through the steps needed to validate a charity's status.
Understanding the importance of this verification process protects you from potential tax issues and helps you identify genuine organizations. We will walk you through the steps to verify a charity's status using the IRS Tax-Exempt Organization Search (TEOS) and how to check state registrations. Let's empower your charitable giving journey!
Step-by-step walkthrough
Access the IRS TEOS Tool
Navigate to the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This tool allows you to check the tax-exempt status of a charity by entering either the charity’s EIN or its name.
Enter EIN or Organization Name
Input the charity's Employer Identification Number (EIN) or their full legal name in the search box. Click 'Search' and wait for the results to appear.
Verify Status
Once the results are displayed, confirm that the charity is listed as 'Currently Exempt' and that it falls under the 501(c)(3) subsection. This status indicates that your donations are potentially tax-deductible.
Check for Revocation
Ensure the revocation date is blank within the TEOS results. A blank date indicates that the charity has not lost its tax-exempt status, which is crucial for your donation's eligibility.
Confirm State Registration
Visit your state's Attorney General (AG) website to check the organization’s registration status for charitable solicitation. This adds another layer of verification to the charity's legitimacy.
Save Your Verification
After completing your verification, save a printout or screenshot of the TEOS results and state registration confirmation. Keep these documents with your donation files as proof of your due diligence.
Positive signals (green flags)
✓ Currently Exempt Status
A listing of 'Currently Exempt' on TEOS confirms that the organization maintains its tax-exempt status, enhancing your trust in its operations.
✓ Good State Standing
Verification with your state's AG shows that the charity is compliant with state laws, indicating accountability and transparency in its fundraising practices.
✓ Positive Reviews
If you find favorable reviews on platforms like Charity Navigator or the BBB, it's a strong indicator of the charity's reliability and commitment to its mission.
✓ Up-to-Date Form 990
Accessing the charity's Form 990 on sites like ProPublica shows transparency in its financial reporting, suggesting responsible management of donor funds.
Warning signals (red flags)
⚠ Revoked Status
If the TEOS shows that the charity has a revoked status, your tax deduction for donations to them may be disallowed, leading to potential issues in audits.
⚠ No State Registration
A lack of registration with the state AG may suggest the organization is operating illegally or is not committed to transparency about its fundraising efforts.
⚠ Inconsistent Information
If the charity's name or EIN does not match other sources, such as their official website or state registration, it could be a sign of a fraudulent organization.
⚠ No Form 990 Filing
Legitimate 501(c)(3) charities are required to file Form 990 annually. If you can't find this form, it may indicate noncompliance or poor financial practices.
Tools + resources
- IRS Tax-Exempt Organization Search: https://apps.irs.gov/app/eos
- Charity Navigator: https://www.charitynavigator.org
- ProPublica Nonprofit Explorer: https://projects.propublica.org/nonprofits
- Better Business Bureau Charity Reviews: https://www.bbb.org/charity-reviews
- Indiana Attorney General Charitable Registrations: https://www.in.gov/attorneygeneral/consumer-protection/charitable-registrations/
Indiana state-level oversight
In Indiana, it's crucial to check with the state Attorney General's office for charitable registrations to ensure that organizations are compliant with local laws. Resources such as the Indiana Nonprofit Association provide additional support and information about local charities. If you're unsure about a charity's legitimacy, organizations like the Better Business Bureau can offer insights and reviews to help you make informed decisions.