As a thoughtful donor, ensuring that your contributions go to reputable charities is essential. Understanding how to verify a charity's IRS 501(c)(3) status empowers you to make informed decisions about your philanthropic efforts. This page will guide you through the steps needed to validate a charity's tax-exempt status and give you peace of mind.
In the following sections, you’ll learn how to use the IRS Tax-Exempt Organization Search (TEOS) to check an organization's status, as well as the importance of verifying that your chosen charity is in good standing with both federal and state authorities. This knowledge not only protects your charitable contributions but also reinforces the integrity of the giving community.
Step-by-step walkthrough
Access the IRS TEOS
Go to the IRS Tax-Exempt Organization Search at https://apps.irs.gov/app/eos. This tool allows you to verify the tax-exempt status of charities across the United States.
Enter the Organization's EIN or Name
Input the Employer Identification Number (EIN) or the name of the charity you wish to verify. This will help you locate the specific charity's tax-exempt status quickly.
Check the Status Display
Look for the status indication—ensure it shows 'Currently Exempt' and lists the subsection as 501(c)(3). This confirms that the charity is recognized as a tax-exempt organization under the IRS guidelines.
Verify State Registration
Separate from the IRS check, visit your state's Attorney General website to confirm that the charity is registered for charitable solicitation. Each state has its own registration requirements.
Document Your Findings
Save a printout or screenshot of the status verification and state registration. Keeping this documentation with your donation file ensures you have records in case of an audit.
Positive signals (green flags)
✓ Clear Tax-Exempt Status
A clear indication of 'Currently Exempt' and 501(c)(3) status in TEOS is a solid sign that the charity operates above board and is eligible for tax-deductible donations.
✓ Positive State Registration
If the charity appears in your state AG’s registry, it indicates compliance with local regulations, which adds to its legitimacy.
✓ Available Financial Reports
Access to Form 990 and other financial documents shows transparency in the charity’s operations and financial health, reassuring you of their accountability.
✓ Good Ratings from Charity Watchdogs
Receiving high ratings from charity evaluators like Charity Navigator or the Better Business Bureau indicates a trusted organization that effectively manages donations.
Warning signals (red flags)
⚠ Status Not 'Currently Exempt'
If the charity does not show 'Currently Exempt,' it may have lost its tax-exempt status. Donating to such organizations can result in disallowed tax deductions.
⚠ Revocation Date Listed
Any indication of a revocation date in the TEOS database means the organization is no longer eligible for tax-exempt status. Avoid donating to such entities.
⚠ No State Registration
If the organization is not registered with the state AG's office, it may not be legally permitted to solicit donations, raising concerns about its legitimacy.
⚠ No Financial Disclosure Forms
Check if the charity is filing required forms, like Form 990. Lack of transparency in reporting can indicate financial mismanagement or operations.
Tools + resources
- https://apps.irs.gov/app/eos
- https://charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.irs.gov/charities-non-profits
Milwaukee state-level oversight
In Milwaukee, the Wisconsin Department of Justice serves as the state Attorney General, where you can find the charitable registration database. Additionally, the Better Business Bureau (BBB) offers charity reviews specific to our local organizations, helping you make informed choices. The Wisconsin Nonprofits Association also provides resources to better understand nonprofit operations and their impact on our communities.