As a donor, your desire to ensure that your contributions are going to legitimate charities is commendable. Verifying a charity's IRS 501(c)(3) status not only protects your donations but also ensures that you can claim tax deductions when applicable. Understanding how to navigate the verification process can empower you to make informed decisions.
This page will guide you through the steps necessary to check a charity's tax-exempt status using the IRS Tax-Exempt Organization Search (TEOS). You'll also learn about the importance of state charitable registrations and what to look for during your verification process.
Step-by-step walkthrough
Access the IRS TEOS
Visit the IRS Tax-Exempt Organization Search at https://apps.irs.gov/app/eos. This tool allows you to search for tax-exempt organizations by entering their Employer Identification Number (EIN) or organization name.
Enter the Charity's Name or EIN
Input the charity’s name or EIN into the search bar. This will pull up the organization’s information so you can check their status directly from the IRS.
Verify Tax-Exempt Status
Review the status displayed on the TEOS. You want to see 'Currently Exempt' along with the designation of 501(c)(3), confirming the organization is a public charity eligible for tax-deductible donations.
Check for Revocation
Make sure the revocation date is blank. If the organization has been revoked, this will be indicated, and it’s a red flag for your donation.
Confirm State Registration
Visit your state Attorney General’s website to check the charity’s registration status. Each state has its own registry for charities that solicit donations, ensuring compliance with local laws.
Save Verification Documentation
Take a screenshot or print out the verification details and save them with your donation records. This documentation is crucial in case of an IRS audit.
Positive signals (green flags)
✓ Current 501(c)(3) Status
Seeing 'Currently Exempt' with a 501(c)(3) designation on TEOS is a strong signal that the organization is legitimate and able to receive tax-deductible donations.
✓ Good State Registration Standing
If the charity is registered with the state AG and in good standing, it indicates compliance with local regulations, enhancing its credibility.
✓ Positive Reviews
Finding favorable reviews on platforms like Charity Navigator or the Better Business Bureau suggests that the organization is well-regarded and transparent in its operations.
✓ Accessible Financial Information
If the charity readily provides its Form 990 and other financial documents, it demonstrates transparency and accountability, qualities of a trustworthy organization.
Warning signals (red flags)
⚠ No IRS Listing
If the charity does not appear in the IRS TEOS, it may not be recognized as a tax-exempt organization. Avoid donating until their status can be verified.
⚠ Revocation Noted
If the TEOS indicates a revocation date, the organization has lost its 501(c)(3) status and cannot provide tax-deductible receipts for donations.
⚠ Inconsistent Information
If the charity’s name or EIN doesn’t match what is listed on IRS TEOS or the state registry, this inconsistency raises questions about legitimacy.
⚠ Lack of Transparency
If the organization is unable or unwilling to provide its financial information or Form 990s upon request, it may be a sign of mismanagement or fraud.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.nebraska.gov/ag/charities/
Nebraska state-level oversight
In Nebraska, it’s essential to verify a charity’s status not only at the federal level but also through the Nebraska Attorney General's office. The AG's office maintains a charitable registration database where you can check if the organization is compliant with state laws. Additionally, the Better Business Bureau in Nebraska provides charity reviews to help you assess the legitimacy of local nonprofits. Always ensure that the organization you wish to support is compliant with both federal and state regulations.