As a thoughtful donor, you want to ensure that your contributions make a meaningful impact. Verifying a charity's IRS 501(c)(3) status is a crucial step in your due diligence. This process gives you peace of mind that your donations are going toward a legitimate nonprofit organization, which in turn qualifies you for tax deductions.
This page will guide you through the necessary steps to confirm a charity's tax-exempt status using the IRS Tax-Exempt Organization Search (TEOS) tool, as well as checking state registrations. Protect your charitable contributions by ensuring that the organizations you support are compliant and operational.
Step-by-step walkthrough
Access IRS TEOS
Visit the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This is the official tool to verify if a charity is recognized as tax-exempt under section 501(c)(3) of the IRS code.
Enter the Charity's EIN or Name
Input the Employer Identification Number (EIN) or the complete name of the organization you want to verify. This will help you locate the specific charity in the IRS database.
Check the Status
After searching, confirm that the charity status shows 'Currently Exempt' and indicates subsection 501(c)(3). This means the organization is eligible for tax-deductible donations.
Verify State Registration
Next, check the state attorney general's website for charitable registration. Each state maintains its own registry, and it's essential to confirm that the charity is registered to solicit donations in your state.
Document Your Findings
Save a printout or screenshot of the verification results and the state registration. Keep this documentation with your donation records for future reference and proof of legitimacy.
Positive signals (green flags)
✓ Current IRS Status
A current 'Currently Exempt' status in TEOS confirms that the organization meets IRS requirements and is eligible for tax-deductible donations.
✓ Positive State Registration
If the charity is listed on the state AG's website as a registered entity, it shows compliance with state regulations and a commitment to transparency.
✓ Accessible Financial Reports
A charity that regularly files and makes its Form 990 and financial reports publicly available demonstrates accountability and financial health.
✓ High Charity Ratings
Charities with high ratings on platforms like Charity Navigator and the Better Business Bureau (BBB) are often well-managed and trustworthy organizations.
Warning signals (red flags)
⚠ Revocation Notice
If the IRS TEOS indicates that the organization has a revocation date, this means it has lost its tax-exempt status, which can lead to tax-deductible claims being disallowed during an audit.
⚠ Inactive Status
If the status shows 'Inactive' or 'Not Found,' be cautious. It may indicate that the organization is no longer operational or has not filed required documentation.
⚠ Lack of State Registration
If the charity is not registered with the state attorney general’s office, this could signal potential issues with its legitimacy or compliance with state laws.
⚠ Missing Form 990
Charities are required to file Form 990 annually. If you can't find a recent Form 990 for a charity, it may indicate financial mismanagement or non-compliance.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://www.bbb.org/charity-reviews
- https://www.nasconet.org
Melbourne state-level oversight
In Melbourne, Florida, you can check the Florida Department of Agriculture and Consumer Services for the state's charitable organization registry. This is a critical step in ensuring that the organizations you consider supporting are compliant with state laws. Additionally, local organizations like the Better Business Bureau can provide insights into the charity's reputation and operational transparency. For a comprehensive understanding of local nonprofits, consider reaching out to the Florida Nonprofit Alliance.