As a thoughtful donor, it's crucial to ensure that your contributions go to legitimate organizations. Understanding how to verify a charity's 501(c)(3) status is a vital step in safeguarding your donations. This page will guide you through the process of confirming a charity's tax-exempt status, helping you make informed and responsible contributions.
By learning to navigate the IRS Tax-Exempt Organization Search and checking state charitable registrations, you'll be equipped to ensure that your chosen charity adheres to legal and ethical standards. This proactive approach not only protects your donations but also fosters greater transparency in charitable giving.
Step-by-step walkthrough
Access the IRS TEOS
Go to the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This tool is designed to help you verify a charity's tax-exempt status quickly and easily.
Enter the Charity’s EIN or Name
Input the charity's Employer Identification Number (EIN) or its name in the provided search fields. Be sure to spell the name correctly to avoid any confusion.
Check the Status
After searching, check that the status displays 'Currently Exempt' and includes the subsection 501(c)(3). This confirms that the organization is a recognized public charity eligible for tax-deductible donations.
Verify State Registration
Visit your state's Attorney General's website to confirm the charity's registration for charitable solicitation. Each state maintains its own registry, so checking this is essential.
Save Documentation
Before completing your donation, save a printout or screenshot of the IRS TEOS result and state registration. This documentation will be important for your records.
Positive signals (green flags)
✓ Transparent Financials
A legitimate charity will make its financial records public, including Form 990 filings. Transparency about funds shows commitment to accountability and donor trust.
✓ Good Standing with State AG
If the charity is registered and in good standing with the state’s Attorney General, this serves as a positive signal that they comply with local laws and regulations.
✓ Positive Reviews
Check platforms like Charity Navigator or the Better Business Bureau for positive reviews and ratings. High ratings often reflect a charity's effectiveness and reliability.
✓ Active Community Engagement
A charity that engages frequently with the community and provides updates about their programs demonstrates a commitment to transparency and accountability to their donors.
Warning signals (red flags)
⚠ Status Not 'Currently Exempt'
If the IRS TEOS shows that the organization is not 'Currently Exempt,' it may indicate a loss of tax status. This could affect your ability to claim deductions on your donations.
⚠ No State Registration
If the charity is not registered with your state’s attorney general, this may suggest they are operating unlawfully. Unregistered charities may not adhere to regulations protecting donor interests.
⚠ Revocation Date Present
If the TEOS indicates the organization has a revocation date, this means their 501(c)(3) status has been revoked. Donating to revoked organizations can lead to tax disallowances.
⚠ Missing Form 990 Filings
Organizations that fail to file Form 990 for three consecutive years automatically lose their tax-exempt status. If you cannot find their filings, it may point to serious compliance issues.
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.attorneygeneral.gov/individuals/charities/
Pennsylvania state-level oversight
In Pennsylvania, the Attorney General’s office maintains a registry of charities to ensure compliance with state laws. Be sure to check this registry before donating. The Pennsylvania Association of Nonprofits is another valuable resource for understanding local charitable organizations. Additionally, local chapters of the Better Business Bureau provide insights into charity reputations and transparency efforts.