As a donor, your desire to support worthy causes is commendable. However, ensuring that the charity you're donating to is recognized as a legitimate 501(c)(3) organization is essential for your financial security and the impact of your generosity. This page will guide you through the process of verifying a charity's tax-exempt status, allowing you to give with confidence.
We will teach you how to use the IRS Tax-Exempt Organization Search (TEOS) to confirm a charity's 501(c)(3) status and why this verification protects you from potential tax issues during audits. Additionally, we will highlight how to check your charity's registration with your state attorney general to ensure compliance and legitimacy.
Step-by-step walkthrough
Visit the IRS TEOS Website
Go to the IRS Tax-Exempt Organization Search tool at apps.irs.gov/app/eos. This platform allows you to search for charities by their Employer Identification Number (EIN) or by their name.
Search for the Charity
Enter the charity's EIN or name into the search bar. Click 'Search' to retrieve information on the organization including its current tax-exempt status.
Verify the Status
Check that the charity's status is marked as 'Currently Exempt' and that it falls under subsection 501(c)(3). This indicates that your donations may be tax-deductible.
Check for Revocation
Ensure that the revocation date listed is blank. Charities that have been revoked can no longer claim tax-exempt status, affecting your donation's deductibility.
Confirm State Registration
Visit your state Attorney General's website to verify that the charity is registered for charitable solicitation. Each state maintains its registry for transparency.
Save Your Findings
Take a printout or screenshot of the verification results from the IRS TEOS and the state registry. Store these documents with your donation records for future reference.
Positive signals (green flags)
✓ Transparency in Reporting
If the charity readily provides access to their IRS Form 990 or other financial documents, it demonstrates a commitment to transparency and accountability.
✓ Positive Reviews
Finding the charity listed on reputable sites like Charity Navigator or the Better Business Bureau indicates they are recognized for fiscal responsibility and effective charity practices.
✓ Active Registration
The charity's active status on the state AG website indicates compliance with state laws and regulations, offering additional assurance of their legitimacy.
✓ Clear Mission Statement
A clear and compelling mission statement on the charity's website often reflects a genuine commitment to their cause, building trust with potential donors.
Warning signals (red flags)
⚠ Status Not Currently Exempt
If the charity's status indicates it is not currently exempt, this may mean it has lost its IRS 501(c)(3) status, potentially disqualifying your donations from tax deductions.
⚠ Revocation Date Listed
A listed revocation date means the charity has lost its tax-exempt status, and contributions made post-revocation are not considered tax-deductible, which could lead to issues during an audit.
⚠ Lack of State Registration
If the charity is not registered with the state Attorney General's office, it may be operating illegally or without proper oversight, putting your donations at risk.
⚠ Inconsistent Information
If the information found on the IRS TEOS doesn't match the charity's claims on their website or in promotional materials, this could indicate potential fraud or misrepresentation.
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
- California Attorney General Charitable Trusts: https://oag.ca.gov/charities
- Association of Fundraising Professionals: https://afpglobal.org
Fresno state-level oversight
In Fresno, California, verifying a charity's legitimacy is particularly crucial due to the diverse range of organizations seeking donations. The California Attorney General's office maintains a detailed registry for charitable organizations, ensuring compliance with state laws. Local resources like the Better Business Bureau (BBB) offer reviews and ratings for charities operating in the area, providing additional layers of assessment for donors. Engaging with the California Association of Nonprofits can also provide insights into reputable charities within Fresno.