As a committed donor, ensuring your contributions support legitimate charities is essential. One of the most important steps in this process is verifying a charity's IRS 501(c)(3) status. When a charity has this status, your donations are generally tax-deductible, meaning you can claim these contributions on your tax returns.
This page walks you through the steps necessary to verify a charity's status using the IRS Tax-Exempt Organization Search. We will also highlight the importance of checking state charitable registration, ensuring that your charitable contributions are both valid and secure.
Step-by-step walkthrough
Access IRS Tax-Exempt Organization Search
Go to the IRS Tax-Exempt Organization Search tool at apps.irs.gov/app/eos. This tool allows you to search for organizations based on their name or EIN.
Enter EIN or Organization Name
In the search tool, type in either the charity's Employer Identification Number (EIN) or its name. Take care to enter the details accurately to avoid any errors in your search.
Check Status and Subsection
Review the results to ensure the charity's status shows 'Currently Exempt' and includes the subsection 501(c)(3). This confirms that the organization is recognized as a public charity.
Verify State Charitable Registration
Check the state attorney general's website for charitable-registration information specific to Virginia. Each state maintains its own registry, and it's crucial to ensure the charity is registered to solicit donations in your state.
Save Your Findings
Before donating, be sure to save a printout or screenshot of the IRS status verification and state registration as part of your donation records. This documentation may be necessary for tax purposes.
Positive signals (green flags)
✓ Currently Exempt Status
A 'Currently Exempt' status with 501(c)(3) designation means the charity is approved by the IRS. This is a strong indicator of its legitimacy and compliance.
✓ Registered with State Attorney General
If the charity appears in your state's charitable registry, it shows that they are authorized to operate and solicit donations within your area, enhancing their credibility.
✓ Accessible Form 990
If the charity provides its IRS Form 990 for public viewing, this level of transparency is a positive sign. It reflects accountability regarding their financial practices.
✓ Positive Ratings from Charity Evaluators
If the charity receives positive ratings from organizations such as Charity Navigator or the Better Business Bureau, it adds an additional layer of confidence in its legitimacy.
Warning signals (red flags)
⚠ Status Shows Revoked
If the IRS search indicates the charity's status is 'Revoked,' it means they are no longer legally recognized as a 501(c)(3). Contributions to revoked organizations won't be tax-deductible.
⚠ No State Registration
If the charity does not appear in your state’s charitable registration, this may indicate that it isn't authorized to solicit donations in your area. This could be a significant red flag.
⚠ Inconsistencies in Information
If the information you receive from the IRS and state AG does not match, it's essential to investigate further. Discrepancies can suggest potential issues with the charity’s legitimacy.
⚠ Lack of Transparency
If the organization does not provide access to its IRS Form 990 or does not respond to inquiries about its operations, it may not be transparent about its practices, which is a concern for donors.
Tools + resources
- IRS Tax-Exempt Organization Search: https://apps.irs.gov/app/eos
- Virginia State Attorney General Charitable Registration: https://www.oag.state.va.us
- Charity Navigator: https://www.charitynavigator.org
- ProPublica Nonprofit Explorer: https://projects.propublica.org/nonprofits
- Better Business Bureau Charity Reviews: https://www.bbb.org/charity-reviews
Norfolk state-level oversight
In Norfolk and throughout Virginia, it's crucial to verify the legitimacy of charities soliciting donations. The Virginia Attorney General's Office provides a charitable registration database enabling residents to confirm if nonprofit organizations are authorized to operate in the state. Additionally, local chapters of organizations like the Better Business Bureau can provide valuable insights into charities’ reputations, helping donors make informed decisions about their contributions.