As a donor, it's crucial to ensure that your contributions are going to reputable charities that adhere to legal and ethical guidelines. In an era where transparency is paramount, verifying a charity's IRS 501(c)(3) status not only safeguards your financial contributions but also confirms that your donations can qualify for tax deductions.
This guide will walk you through the simple steps to verify a charity's tax-exempt status using the IRS Tax-Exempt Organization Search (TEOS). You'll also learn why this verification is important and what to look for to ensure your donations are making the impact you intend.
Step-by-step walkthrough
Access IRS TEOS
Visit the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This user-friendly tool allows you to check the tax-exempt status of any organization.
Enter Charity Information
Input the EIN (Employer Identification Number) or the organization's name into the search box. This will help you locate the specific charity you intend to verify.
Verify Status
Once you enter the information, check the results. The status should show 'Currently Exempt' and specify the subsection as 501(c)(3). This indicates the organization is a tax-exempt public charity.
Check for Revocation
Make sure there is no revocation date listed. A blank revocation date means the organization has maintained its 501(c)(3) status and has filed its required forms.
Verify State Registration
Visit your state Attorney General's website to confirm the charity's registration for charitable solicitation. Each state has different regulations and registries to ensure compliance.
Save Documentation
Take a screenshot or print out the verification results and keep them in your donation file. This will serve as proof of due diligence in case of an audit.
Positive signals (green flags)
✓ Currently Exempt
✓ Timely Form 990 Filings
✓ Registered with State AG
✓ Positive Reviews and Ratings
Warning signals (red flags)
⚠ Expired or Revoked Status
If the status shows 'Revoked' or indicates that the charity has lost its 501(c)(3) status, do not proceed with your donation as it won't be tax-deductible.
⚠ No Charitable Registration
If the charity is not registered with your state Attorney General's office, it may be operating illegally or outside regulations, raising serious concerns about its legitimacy.
⚠ Missing Form 990 Filings
Charities are required to file Form 990 annually. If a charity has not filed for three consecutive years, it automatically loses its tax-exempt status.
⚠ Inconsistent Information
Be wary if the charity's name, EIN, or address doesn't match across different platforms. Inconsistent information can be a sign of a fraudulent organization.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org/
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.colorado.gov/pacific/ago/charitable-organizations
- https://www.afpnet.org/
Denver state-level oversight
In Denver and across Colorado, donors can verify charity registration through the Colorado Secretary of State's website and the state Attorney General's office. Local resources such as the Better Business Bureau (BBB) and the Colorado Nonprofit Association also provide valuable insights on local charities. Engaging with these resources can enhance your confidence in the organizations you choose to support.