As a thoughtful donor, ensuring your contributions are effectively utilized is a priority. Before donating to a charity, it’s essential to verify its IRS 501(c)(3) status. This verification not only empowers you to ensure your donations are tax-deductible but also protects you from potential issues during audits.
This guide will walk you through how to confirm a charity's tax-exempt status using the IRS Tax-Exempt Organization Search (TEOS). You'll learn the steps to check the organization’s standing and what to look for in state registries. Empowering yourself with this information can enhance your charitable giving experience.
Step-by-step walkthrough
Access the IRS TEOS
Navigate to the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This is a reliable source for confirming a charity's tax-exempt status and ensures transparency in your charitable giving.
Enter EIN or Name
You can use either the charity's Employer Identification Number (EIN) or its official name. This will help you get specific results and confirm that you are checking the correct organization.
Verify Status
Look for a status that shows 'Currently Exempt' and a subsection of 501(c)(3). This indicates that the organization is recognized as a public charity by the IRS and that your donations are likely tax-deductible.
Check for Revocation
Ensure the revocation date is blank, indicating that the charity has not lost its tax-exempt status. Organizations can be automatically revoked after three consecutive years of non-filing Form 990.
Confirm State Registration
Visit your state's Attorney General (AG) website to check if the charity is registered for charitable solicitation. Each state has its own requirements, and this step adds an extra layer of assurance.
Document Your Findings
Save a printout or screenshot of the verification results and state registration. Keep this in your donation file to have a record of your due diligence.
Positive signals (green flags)
✓ Clear 501(c)(3) Status
An organization listed as 'Currently Exempt' under 501(c)(3) means it qualifies for tax-deductible donations, validating its legitimacy.
✓ Responsive Communication
A charity that promptly answers queries and provides documentation can be a strong indicator of a reputable organization focused on transparency.
✓ Positive Reviews
Check platforms like Charity Navigator or the Better Business Bureau for positive reviews and ratings. This reflects the charity's effectiveness and community trust.
✓ Available Financial Records
Legitimate charities publish their IRS Form 990 and annual reports. Accessing these documents demonstrates accountability in their financial dealings.
Warning signals (red flags)
⚠ Inactive Status
If the IRS TEOS shows that the organization is inactive, this raises a significant red flag. Inactive charities could mean they have lost their tax-exempt status, making your donations non-deductible.
⚠ Revocation Date Present
A charity with a listed revocation date has lost its 501(c)(3) status. Donating to such an organization could lead to issues with tax deductions and compliance.
⚠ No State Registration
If the charity is not registered with your state’s AG office, it may not be operating legally. This could indicate potential fraud or mismanagement of funds.
⚠ Lack of Transparency
Charities that fail to publicly share their financial documents or IRS Form 990 may be hiding information. Transparency is vital for any legitimate organization.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://portal.ct.gov/AG/Charitable-Solicitation
Hartford state-level oversight
In Hartford, Connecticut, verifying a charity's status includes checking the Connecticut Attorney General's charitable registry. The Attorney General oversees charitable organizations to ensure compliance with state regulations. Additionally, the Better Business Bureau (BBB) provides detailed reviews of local charities, helping donate confidently. Engaging with local nonprofit associations can further enhance your understanding of reputable charities operating in the area.