As a donor, verifying the legitimacy of a charity is crucial for ensuring your contributions are put to good use. Knowing how to check a charity's IRS 501(c)(3) status is an important step in your donation process. Charitable organizations with this designation are eligible for tax-deductible donations, which can impact your financial decisions.
This page will guide you through the necessary steps to verify a charity's status using the IRS Tax-Exempt Organization Search, along with additional resources to check state registration. You'll gain valuable insights on how to protect your donations against potential fraud, ensuring that your generosity truly benefits those in need.
Step-by-step walkthrough
Access IRS TEOS
Go to the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This is the official IRS tool to check a charity's tax-exempt status.
Enter EIN or Name
Input the charity's Employer Identification Number (EIN) or its official name in the search bar. This will help you find the specific charity you want to verify.
Verify Status
Review the search results to ensure the charity shows 'Currently Exempt' and is listed under the 501(c)(3) subsection. This indicates that the charity is eligible for tax-deductible donations.
Check for Revocation
Ensure that the revocation date is blank. A blank field means the charity has not lost its tax-exempt status. If there’s a date, proceed with caution.
Review State Registration
Visit your state's Attorney General's website to confirm that the charity is registered for charitable solicitation. Each state maintains its own registry.
Save Your Findings
Take a screenshot or print the verification results. Keep this documentation with your donation file for future reference.
Positive signals (green flags)
✓ Positive IRS Status
A charity showing 'Currently Exempt' under 501(c)(3) status is a good sign. This means it can offer tax-deductible donations, confirming its legitimacy for your support.
✓ Registered in State AG
If the charity is registered with the state Attorney General’s office, it indicates compliance with state regulations, enhancing its credibility as a legitimate organization.
✓ Good Ratings on Charity Platforms
Check for strong ratings on platforms like Charity Navigator or the Better Business Bureau. High marks often indicate responsible financial management and transparency.
✓ Accessible Financial Records
If the charity provides easy access to its financial records, including Form 990 and Schedule L, it shows transparency and a commitment to responsible governance.
Warning signals (red flags)
⚠ No Current Exemption
If the charity's status shows 'Not Currently Exempt', this is a significant red flag. It indicates that contributions may not be tax-deductible and could compromise your charitable intent.
⚠ Revocation Date Present
If you find a revocation date on the IRS TEOS search, the charity has lost its tax-exempt status. Donating to revoked organizations can result in disallowed tax deductions.
⚠ Lack of State Registration
A charity not registered with the state Attorney General's office may not be operating legally. This can put your donation at risk and raises questions about its legitimacy.
⚠ Frequent Name Changes
If a charity frequently changes its name, it could indicate instability or attempts to evade scrutiny. Verify its history with state and federal databases.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://www.bbb.org/charity-reviews
- https://www.tn.gov/attorneygeneral/consumer-protection/charitable-organizations.html
Knoxville state-level oversight
In Knoxville, Tennessee, potential donors should be aware of the state Attorney General’s office, which oversees charitable registrations and ensures organizations comply with state laws. Additionally, the Better Business Bureau provides valuable charity evaluations to help you make informed decisions. For more localized assistance, the Tennessee Nonprofit Association offers resources aimed at promoting effective and ethical charitable practices within the state.
FAQ
What is a 501(c)(3) charity?
Why is it important to verify charity status?
What happens if a charity loses its 501(c)(3) status?
How often should I verify a charity’s status?
What should I do if a charity is not registered?
Can I check financials for local charities?
Is there a risk in donating to unverified charities?
Other donor-verification guides
Before donating to any charity, take the time to verify their IRS 501(c)(3) status and state registration. This simple step empowers you to ensure that your generous contributions are tax-deductible and truly help those in need. By being proactive in your giving, you can protect your financial interests and support organizations that share your values. Let’s make a difference with informed choices!