As a conscientious donor, you want to ensure that your contributions are going to legitimate charities. One of the critical steps in your due diligence is verifying whether a charity has a valid IRS 501(c)(3) status. This designation signifies that the organization is recognized as a tax-exempt entity, allowing your donations to be tax-deductible. Without this verification, you risk having your tax-deductible claims denied during an audit.
This page will guide you through the steps needed to verify a charity’s 501(c)(3) status using the IRS Tax-Exempt Organization Search (TEOS). You'll also learn about the importance of checking state charitable registrations. Protect your charitable contributions by following these steps and ensuring that your donations are secure and count toward your tax deductions.
Step-by-step walkthrough
Visit the IRS TEOS website
Go to the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This tool enables you to verify a charity's tax-exempt status and view important details about the organization.
Enter the Charity's EIN or Name
Type in either the Employer Identification Number (EIN) or the full name of the charity you wish to verify. This will help you find the specific organization you are considering for your donation.
Check the Status Displayed
Once you’ve entered the details, check for the status to show 'Currently Exempt' and ensure that it indicates the subsection 501(c)(3). This confirms the charity's eligibility for tax-deductible contributions.
Check for Revocation Dates
Look for any indication of revocation dates. An absence of a revocation date suggests that the charity's 501(c)(3) status is current, which is crucial for your tax-deductible donations.
Verify State Registration
Visit your state’s Attorney General’s website to check if the charity is registered for charitable solicitation. Each state maintains its own registry, and it's essential to confirm compliance.
Save Your Verification
After completing your checks, save a printout or screenshot of the verification. Keep this documentation with your donation records for future reference, especially when claiming tax deductions.
Positive signals (green flags)
✓ Currently Exempt Status
Seeing a 'Currently Exempt' status in TEOS confirms the charity meets IRS requirements for tax-exempt status, providing you with peace of mind regarding your donation.
✓ 501(c)(3) Subsection Listed
If the organization is classified under subsection 501(c)(3), it’s a public charity and your donations are likely to be tax-deductible, ensuring your support is beneficial.
✓ Positive State Registration
Verification of the charity’s registration with the state AG indicates compliance with local laws, which is another layer of protection for your contributions.
✓ Clear Contact Information
A legitimate charity will have clear and accessible contact information. Transparency is a good indicator that the organization is trustworthy and open to donor inquiries.
Warning signals (red flags)
⚠ Missing EIN
If the charity does not have an EIN listed on the IRS TEOS, it may not be a legitimate 501(c)(3). Only established organizations receive an EIN, which is crucial for tax purposes.
⚠ Status Not 'Currently Exempt'
If the charity's status does not display as 'Currently Exempt,' this raises a red flag. It means they may not be eligible for tax-deductible donations, putting your contribution at risk.
⚠ Revocation Dates Present
Should the TEOS show a revocation date, the charity has lost its 501(c)(3) status. Donating to such an organization could jeopardize your ability to claim a tax deduction.
⚠ No State Registration
If the charity is not registered with the state’s AG, it may be operating unlawfully. Check local regulations to ensure compliance before making a donation.
Tools + resources
- IRS Tax-Exempt Organization Search: apps.irs.gov/app/eos
- Charity Navigator: charitynavigator.org
- ProPublica Nonprofit Explorer: projects.propublica.org/nonprofits
- Better Business Bureau - Charity Reviews: bbb.org/charity-reviews
- South Carolina Secretary of State: scc.usc.edu
- Association of Fundraising Professionals: afpglobal.org
South Carolina state-level oversight
In South Carolina, it is vital to verify a charity’s status not only through the IRS but also via the State Attorney General's Office. The SC AG maintains a charitable organization registration database, which can help ensure that the charity you're considering complies with state laws. You can access this database through the SC Secretary of State’s website. Additionally, local chapters of organizations like the Better Business Bureau can provide valuable insights and reviews of charities operating in your area, contributing to your informed giving.