As a donor, verifying a charity’s IRS 501(c)(3) status is paramount to ensure that your contributions are not only meaningful but also eligible for tax deductions. By taking a few simple steps, you can safeguard your charitable donations and ensure they are going to organizations that are legitimate and compliant with IRS regulations.
This page will guide you through the process of verifying a charity’s status using the IRS Tax-Exempt Organization Search (TEOS) and checking state registrations. Understanding these processes can help you avoid potential pitfalls, such as donating to revoked organizations or non-exempt entities.
Step-by-step walkthrough
Access IRS TEOS
Go to the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. Here, you can search for charities using either their Employer Identification Number (EIN) or the name of the organization.
Enter EIN or Name
Input the charity’s EIN or name into the search fields. Make sure you enter information accurately to retrieve the correct organization's status on the IRS website.
Check IRS Status
Once you locate the organization, check its status. You should see 'Currently Exempt' and the subsection listed as 501(c)(3) to ensure it qualifies as a public charity.
Verify State Registration
Next, confirm the charity’s registration with the Indiana Attorney General’s office. Each state has its own registry, and you can find Indiana's information on the AG's official website.
Document Your Findings
Before making a donation, save a printout or screenshot of the charity's IRS TEOS page and the state registration. Keeping clear documentation in your donation file is essential for your records.
Positive signals (green flags)
✓ Positive IRS Status
If you find the organization listed as 'Currently Exempt' under 501(c)(3), it typically indicates that the charity is legitimate and compliant with IRS regulations.
✓ Clear Documentation
A charity that provides clear documentation, such as financial reports and proof of IRS status, demonstrates transparency and accountability.
✓ Good State Registration
Finding the charity in the state AG registry is a good sign. It shows that the organization is complying with state charitable solicitation laws.
✓ Positive Ratings
If the charity has positive ratings on platforms like Charity Navigator or the Better Business Bureau, it's a strong indication of its integrity and impact.
Warning signals (red flags)
⚠ No 'Currently Exempt' Status
If the charity's IRS status does not indicate 'Currently Exempt' under 501(c)(3), do not donate. This indicates that the organization may not be eligible for tax-deductible contributions.
⚠ Revocation Date Present
If you see a revocation date on the IRS TEOS page, this means the charity has lost its tax-exempt status. Donating to such an organization could put your tax deduction at risk.
⚠ Inconsistent Information
If the charity claims to be registered but does not appear in the state AG registry, it raises a red flag. Always ensure that the information is consistent across platforms.
⚠ History of Non-Filing
Be cautious if the organization has been flagged for non-filing of Form 990. Three consecutive years of non-filing can lead to automatic revocation of tax-exempt status.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.in.gov/attorneygeneral/consumer-protection/charitable-solicitations/
Indianapolis state-level oversight
In Indianapolis, you can verify charity registrations through the Indiana Attorney General’s website, which maintains a database of registered charities. The Better Business Bureau also provides charity reviews to help donors make informed decisions. Additionally, organizations like the Indiana Nonprofit Resource Network offer valuable resources for both donors and nonprofits, enhancing transparency and accountability in the local charitable landscape.