As a donor, it's vital to ensure that your contributions go to legitimate organizations. One crucial step in this process is verifying a charity's IRS 501(c)(3) status. This not only confirms the organization is recognized as tax-exempt, but also that your donations are eligible for tax deductions.
This page will guide you through the steps to verify a charity's tax-exempt status, using resources like the IRS Tax-Exempt Organization Search. Understanding these steps can protect you from potential audits and ensure you support organizations that truly deserve your generosity.
Step-by-step walkthrough
Access the IRS TEOS Tool
Go to the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This tool allows you to verify the tax-exempt status of various organizations in the U.S.
Enter Charity Information
Input the charity's Employer Identification Number (EIN) or the organization’s name in the search box. Click on 'Search' to proceed with the verification.
Check the Status
Review the results. The charity's status should display as 'Currently Exempt' along with the designation of 501(c)(3). If the status shows otherwise, reconsider your donation.
Verify State Registration
Check your state Attorney General’s website for the charity’s charitable solicitation registration. Each state has its own registry, which ensures compliance with state laws.
Document Your Findings
Save a printout or screenshot of the verification results. This documentation can be essential for your records when claiming tax deductions.
Positive signals (green flags)
✓ Currently Exempt
A status of 'Currently Exempt' on the IRS TEOS confirms that the charity maintains its 501(c)(3) status and can receive tax-deductible contributions.
✓ Positive State Registration
Finding the charity registered with your state’s AG office indicates compliance with state regulations, further assuring its legitimacy.
✓ Transparency in Reporting
If the charity provides access to its Form 990 or other financial documents, it exhibits transparency and accountability to its donors.
✓ Good Ratings on Charity Websites
Favorable reviews on charity watchdog sites like Charity Navigator or the Better Business Bureau signify responsible management and effectiveness.
Warning signals (red flags)
⚠ Status Not Exempt
If the IRS TEOS indicates that the organization is not currently exempt, it may not qualify for tax-deductible donations, and you should avoid donating.
⚠ State Registration Issues
If the charity is not listed in your state’s AG registry, it may be operating unlawfully, which puts your donation at risk.
⚠ Revocation Dates
Check for any revocation dates on the IRS TEOS. If a charity has been revoked, it may not be able to offer you tax deductions for your contribution.
⚠ High-Pressure Fundraising
Be cautious of organizations that use high-pressure tactics for donations. Legitimate charities allow you to verify their status before donating.
Tools + resources
- IRS Tax-Exempt Organization Search: apps.irs.gov/app/eos
- ProPublica Nonprofit Explorer: projects.propublica.org/nonprofits
- Charity Navigator: charitynavigator.org
- BBB Charity Reviews: bbb.org/charity-reviews
- South Dakota Attorney General's Office: atg.sd.gov
South Dakota state-level oversight
In South Dakota, verifying charitable organizations is essential for donors. The South Dakota Attorney General’s office maintains a charitable registry that can help you ensure an organization’s legitimacy. Additionally, local resources like the Better Business Bureau can provide insights into charities' reputations and operational practices. Being vigilant can protect your donations and help you support causes that truly make a difference.