As a donor, you rightfully want to ensure that your contributions go to legitimate organizations. Verifying a charity's IRS 501(c)(3) status is a crucial step in this process, allowing you to confirm that your donations are tax-deductible and that the charity maintains compliance with federal regulations.
This page will guide you through a straightforward, step-by-step process to verify a charity's status using the IRS Tax-Exempt Organization Search tool, check for revocation notices, and ensure registration with your state’s Attorney General's office. Doing your homework can protect your charitable intentions and your financial interests.
Step-by-step walkthrough
Access the IRS TEOS
Visit the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This is the official website where you can check a charity's tax-exempt status.
Enter the Organization's Details
You can search by the charity’s name or their Employer Identification Number (EIN). Enter the information in the provided fields and click 'Search.'
Review the Status
Look for the charity’s status in the search results. It should indicate 'Currently Exempt' and display the subsection 501(c)(3). This confirms that the organization is recognized as a public charity.
Check for Revocation
Ensure that there is no revocation date listed. If a charity has been revoked due to non-filing of Form 990, it can lead to disqualification for tax-deductible donations.
Verify State Registration
Visit your state Attorney General's website to check if the charity is registered. Each state maintains its own registry for charitable organizations to ensure compliance.
Save the Information
Make sure to save a printout or screenshot of the verification results as part of your donation records. This documentation can be useful for tax purposes.
Positive signals (green flags)
✓ Currently Exempt Status
A status of 'Currently Exempt' under 501(c)(3) indicates that the charity is officially recognized and can receive tax-deductible contributions.
✓ Transparent Financial Reporting
A charity that readily provides access to their Form 990 demonstrates transparency and accountability, which are positive indicators of a legitimate organization.
✓ Positive Reviews and Ratings
Endorsements from reputable organizations, like Charity Navigator or the Better Business Bureau, offer further confidence in the charity's effectiveness and ethics.
✓ State Registration Verified
If the charity is listed in your state's registry, it shows compliance with state regulations and a commitment to transparency.
Warning signals (red flags)
⚠ No Exempt Status
If the charity is listed as 'Not Exempt,' it is not eligible for tax-deductible donations. Be cautious as this could indicate potential issues.
⚠ Revocation Notice Present
A revocation date on the TEOS results warns that the charity may have lost its tax-exempt status due to non-compliance, affecting your donation's tax-deductibility.
⚠ Missing State Registration
If the charity is not registered in your state's Attorney General's registry, it may lack the necessary approval to solicit donations legally.
⚠ Lack of Transparency
If the charity does not provide easy access to their Form 990 or fails to respond to inquiries about their finances, this raises significant concerns about their legitimacy.
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
- Iowa Attorney General Charitable Organizations: https://ag.iowa.gov/consumers/charitable-organizations
Iowa state-level oversight
Iowa has specific regulations to protect donors and ensure transparency among charities. The Iowa Attorney General's office maintains a charitable registration database where you can verify local organizations. Additionally, the Better Business Bureau (BBB) offers reviews and ratings for charities in Iowa, helping you make informed decisions. Utilizing these resources can empower you to give wisely and support organizations that align with your values.