As a dedicated donor, it's vital to ensure that your contributions are going to legitimate organizations. This page will guide you through the process of verifying a charity's IRS 501(c)(3) status, ensuring that your donations are tax-deductible and that your philanthropic efforts are truly making an impact.
By following the steps outlined here, you can protect yourself from potential pitfalls, such as donating to organizations that may not meet IRS guidelines. We will walk you through the IRS Tax-Exempt Organization Search tool and other necessary checks to empower your giving decisions.
Step-by-step walkthrough
Access IRS TEOS
Visit the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This tool allows you to verify a charity's exempt status easily.
Enter EIN or Name
Input the charity's Employer Identification Number (EIN) or its official name in the search bar. This will help you find the specific organization you're interested in.
Check Exempt Status
Review the search results to ensure the charity's status shows 'Currently Exempt' and specifies subsection 501(c)(3). This confirms that the organization is eligible for tax deductions.
Confirm State Registration
Separate from the IRS check, visit your state Attorney General's website to confirm the charity's registration for charitable solicitation. Each state has its own requirements and registry.
Save Documentation
Before finalizing your donation, take a screenshot or print out the verification results. Keep this documentation with your donation records for future reference.
Positive signals (green flags)
✓ Currently Exempt
A status of 'Currently Exempt' in IRS TEOS assures you that the organization is maintaining its tax-exempt status and complying with IRS regulations.
✓ State Registration Verified
Confirming that the charity is registered with the state AG shows that it adheres to state laws governing charitable organizations, enhancing its legitimacy.
✓ Positive Reviews
Look for positive reviews on platforms like Charity Navigator and the Better Business Bureau. This indicates that others trust and support the organization.
✓ Transparent Financials
Access to Form 990 and other financial documents demonstrates transparency in how the charity operates and uses its funds.
Warning signals (red flags)
⚠ Status Not Currently Exempt
If the IRS TEOS indicates that the charity is not currently exempt, it may no longer qualify for tax-deductible donations. This should raise immediate concerns.
⚠ Revoked Status
A blank revocation date in TEOS is crucial. If a charity has been revoked, it can no longer accept tax-deductible donations, which is a major red flag.
⚠ No State Registration
If the charity is not registered with the state Attorney General, it may not be complying with local laws, potentially indicating a lack of legitimacy.
⚠ Missing Form 990
Legitimate 501(c)(3) organizations are required to file Form 990 annually. If this is missing for three consecutive years, they may lose their tax-exempt status.
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
- BBB Charity Reviews: https://www.bbb.org/charity-reviews
- Michigan Attorney General Charitable Registration: https://www.michigan.gov/ag
- American Fundraising Professionals: https://afpglobal.org
Michigan state-level oversight
In Michigan, the Attorney General's office oversees charitable registration and compliance. It's essential to use their registry to confirm that the charity you wish to donate to is operating legally. Additionally, organizations like the Better Business Bureau provide independent evaluations and ratings of charities, which can further guide your decision-making process. The Michigan Nonprofit Association is another valuable resource that supports transparency and accountability among local nonprofits.