As a conscientious donor, it’s crucial to ensure that your charitable contributions are going to legitimate organizations. Verifying a charity's IRS 501(c)(3) status not only confirms its eligibility for tax-deductible donations but also protects you from potential auditing issues. In this guide, we will walk you through the steps to verify a charity's status, highlighting why this process matters.
Understanding the nuances of charitable giving allows you to make informed decisions. You’ll learn how to use the IRS Tax-Exempt Organization Search, check state charitable registrations, and recognize red flags that may indicate a charity is not legitimate. Empower your giving with knowledge!
Step-by-step walkthrough
Access IRS TEOS
Visit the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This tool allows you to check if an organization has a valid 501(c)(3) status.
Enter Charity Details
Input the charity's Employer Identification Number (EIN) or the organization’s name into the search bar. Ensure the details are accurate to get the right information.
Check Status
Once you find the organization, verify that its status reads 'Currently Exempt' and that it falls under subsection 501(c)(3). This indicates eligibility for tax-deductible donations.
Verify State Registration
Visit your state's Attorney General’s website to confirm that the charity is registered for charitable solicitation in Ohio. Each state has its own requirements for registration.
Document Your Findings
Before making any donations, save a printout or screenshot of the TEOS search results and the state registration. This documentation will be useful for your records.
Positive signals (green flags)
✓ Clear 'Currently Exempt' Status
✓ Positive Reviews
✓ Active State Registration
✓ Timely Form 990 Filings
Warning signals (red flags)
⚠ No 'Currently Exempt' Status
If the organization does not show 'Currently Exempt' in the IRS TEOS, it is not eligible for tax-deductible donations, posing a risk for your charitable contributions.
⚠ Revocation Notice
If the charity's status shows a revocation date, it indicates that the organization lost its 501(c)(3) status, rendering any donations non-deductible and potentially problematic.
⚠ Missing State Registration
If the charity is not registered with the Ohio Attorney General’s office, it may not be authorized to solicit donations, casting doubt on its legitimacy.
⚠ Failure to File Form 990
A charity that has not filed Form 990 for three consecutive years automatically loses its 501(c)(3) status. Check if the organization has filed its paperwork to maintain compliance.
Tools + resources
- IRS Tax-Exempt Organization Search: https://apps.irs.gov/app/eos
- Charity Navigator: https://www.charitynavigator.org
- ProPublica Nonprofit Explorer: https://projects.propublica.org/nonprofits
- BBB Charity Reviews: https://www.bbb.org/charity-reviews
- Ohio Attorney General Charitable Registration: https://www.ohioattorneygeneral.gov/Charities
Ohio state-level oversight
In Ohio, verifying a charity's registration is crucial for ensuring that your donations are making an impact. The Ohio Attorney General maintains a registry of charitable organizations, which can be a valuable resource. Additionally, the Better Business Bureau offers charity reviews to assess legitimacy and credibility. For local nonprofit insights, consider connecting with the Ohio Association of Nonprofits, which supports transparency and best practices in the nonprofit sector.