As a donor, verifying a charity’s legitimacy is crucial to ensure your contributions make a positive impact. Organizations with IRS 501(c)(3) status are qualified to offer tax deductions, protecting your financial interests while supporting community efforts.
This page will guide you through the essential steps to verify a charity’s IRS status and state registration. By following our process, you can confidently donate knowing your support is going to a reputable organization.
Step-by-step walkthrough
Access the IRS Tax-Exempt Organization Search
Go to the IRS Tax-Exempt Organization Search tool at apps.irs.gov/app/eos. This is the official resource to check if a charity has the appropriate tax-exempt status.
Enter the Charity's EIN or Name
Input the charity's Employer Identification Number (EIN) or organization name into the search field. This will allow you to retrieve specific information about the charity's tax-exempt status.
Verify the Status
Once the results populate, check that the status reads 'Currently Exempt' under the subsection 501(c)(3). If it does, the charity is qualified for tax-deductible donations.
Check for Revocation
Look for any flags indicating a revocation date. A blank revocation date signifies that the organization maintains its exempt status. If there is a date listed, it indicates a loss of status.
Confirm State Registration
Visit your state Attorney General’s website to check the charity's charitable registration. Each state has its own registry, ensuring that the charity complies with local regulations.
Save Your Verification
Take a screenshot or print out the verification results and keep it with your donation file. This documentation is essential for tax purposes and in case of an IRS audit.
Positive signals (green flags)
✓ Clear 501(c)(3) Status
A straightforward listing of 'Currently Exempt' under 501(c)(3) signifies that your donations may be tax-deductible and the organization operates legally.
✓ Positive Reviews
Locate favorable reviews on sites like BBB or Charity Navigator. Consistent positive feedback demonstrates accountability and trustworthiness.
✓ Accessible Financials
A legitimate charity will readily provide access to their Form 990 and other financial documents, showcasing transparency in their operations.
✓ State Registration Confirmed
When a charity is listed on the state AG’s registry, it indicates compliance with local regulations, adding credibility and legitimacy to their operations.
Warning signals (red flags)
⚠ Revocation Date Listed
If the IRS registration shows a revocation date, the organization may no longer qualify for tax-deductible donations, leading to potential issues during audits.
⚠ Status Not 'Currently Exempt'
Any status other than 'Currently Exempt' indicates that the charity may not be tax-compliant. Avoid donating until further verification is obtained.
⚠ No State Registration
If the charity is not registered with the state Attorney General’s office, it could be operating illegally, which may compromise your donation.
⚠ Inconsistent Information
If the information from the IRS and state registry do not align, this inconsistency can be a sign of a potentially fraudulent organization.
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.nashville.gov
- https://www.tn.gov/attorneygeneral/
Nashville state-level oversight
Nashville and Tennessee residents can rely on the state Attorney General's website for verification of charitable organizations. The AG's office maintains a public registry of charities operating in the state. For additional guidance, consider reaching out to local resources such as the Better Business Bureau (BBB) for charity reviews and the Tennessee Nonprofit Association for insights on compliant organizations.