As a conscientious donor, you want to ensure that your charitable contributions are going to legitimate organizations that qualify for tax deductions. Understanding how to verify a charity's IRS 501(c)(3) status is essential for making informed decisions. This page will guide you through the process, ensuring your generosity is both impactful and compliant.
By following our step-by-step guide, you’ll learn how to use the IRS Tax-Exempt Organization Search (TEOS) to confirm a charity’s status, check for any potential issues, and understand why this verification is crucial before making your donation. Your diligence protects your financial contributions and supports the mission of trustworthy organizations.
Step-by-step walkthrough
Access the IRS TEOS
Visit the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This is the official IRS database where you can verify a charity's tax-exempt status using their Employer Identification Number (EIN) or organization name.
Enter Charity Details
Input the charity's EIN or name into the search field. Review the displayed results to ensure you find the correct organization, as multiple charities may share similar names.
Verify the Status
Check that the charity's status shows 'Currently Exempt' and specifically lists the subsection as 501(c)(3). This indicates that the organization is a qualified public charity eligible for tax-deductible donations.
Check for Revocation
Ensure that the revocation date is blank. If an organization has been revoked, it will not be eligible for tax deductions. Look for any flags indicating past revocation before proceeding with your donation.
Confirm State Registration
Visit your state Attorney General's website to ensure the charity is registered for charitable solicitation in Alabama. This additional step is crucial as each state has its own regulation and registration process.
Save Documentation
Before finalizing your donation, make a printout or screenshot of the verification results from the IRS TEOS and the state registry. Keep this documentation with your donation records for future reference.
Positive signals (green flags)
✓ Clear 501(c)(3) Status
The organization is listed as 'Currently Exempt' under 501(c)(3), confirming that it is a legitimate public charity eligible for tax-deductible donations.
✓ Good Standing in State
If the charity is registered with the state AG and has a clear charitable solicitation status, it indicates compliance with local regulations.
✓ Positive BBB Rating
If the charity has a good rating and positive feedback on the BBB, this demonstrates a track record of transparency and reliability in their operations.
✓ Transparent Reporting
Access to their Form 990 or Schedule L on platforms like ProPublica shows that the charity is transparent about its finances, enhancing your confidence in their operations.
Warning signals (red flags)
⚠ Revocation Status
If the charity's revocation date is listed, it indicates that the organization has lost its tax-exempt status, meaning your donation will not be tax-deductible.
⚠ No IRS Status
If the organization does not appear in the IRS TEOS, it may mean that they are not recognized as a legitimate 501(c)(3) charity, raising serious concerns about their legitimacy.
⚠ Inconsistent Information
If the charity's name, EIN, or status does not match across different databases (IRS TEOS, state AG registry), it may indicate a fraudulent operation or an administrative error.
⚠ Negative Reviews
Check platforms like the Better Business Bureau (BBB) for any complaints or negative reviews about the charity. This may indicate mismanagement or unethical practices.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.alaag.gov
- https://www.alabamanonprofits.org
Alabama state-level oversight
In Alabama, you can verify charitable organizations through the state Attorney General's website, which maintains a registry of charities registered for solicitation. Additionally, the Better Business Bureau (BBB) offers ratings and reviews for charities operating in the state. The Alabama Association of Nonprofits (AAN) is another valuable resource, promoting best practices among local nonprofits and ensuring community trust.
FAQ
Why is it important to verify a charity's status?
What if a charity is not listed in the IRS TEOS?
Can a charity lose its 501(c)(3) status?
How can I file a complaint against a charity?
What documentation should I keep after donating?
Is there a cost to check a charity’s status?
How often should I verify charities?
Other donor-verification guides
Before you donate, take a moment to verify the charity you’re considering. By following the steps outlined on this page, you can ensure your contributions support legitimate organizations while also securing your tax deductions. Your due diligence empowers your charitable giving and fosters trust in the nonprofit sector.