As a responsible donor, it’s commendable that you want to verify the legitimacy of a charity before making a contribution. Understanding how to confirm an organization’s IRS 501(c)(3) status is essential for ensuring that your donations are tax-deductible and effectively support the cause you care about. This page will walk you through the process of verifying a charity’s tax-exempt status, helping you make informed decisions.
In this guide, you will learn how to use the IRS Tax-Exempt Organization Search (TEOS) to verify an organization’s status by entering its Employer Identification Number (EIN) or name. You'll also find out why this verification is crucial and how to protect yourself from potential audits or issues with non-deductible donations.
Step-by-step walkthrough
Access the IRS TEOS
Go to the IRS Tax-Exempt Organization Search tool at apps.irs.gov/app/eos. This resource will help you determine the tax status of a charity you are considering donating to.
Enter EIN or Organization Name
Input the organization’s EIN or its name into the search bar. This will allow you to find the specific charity in question and view its tax-exempt status.
Check the Status
Look for the results that indicate 'Currently Exempt' along with the designation 501(c)(3). Only charities with this status can offer tax-deductible donations.
Verify State Registration
Visit your state Attorney General’s website to confirm that the charity is registered for charitable solicitation in Texas. Each state has its own registry, so be sure to check this vital step.
Save Your Verification
After performing your checks, take a screenshot or print the verification page showing the charity's status. Keep this documentation with your donation records for reference.
Positive signals (green flags)
✓ Currently Exempt
A status of 'Currently Exempt' on the IRS TEOS confirms that the charity is recognized as a valid 501(c)(3), allowing for tax-deductible donations.
✓ Good Standing in State
If the charity is registered with the Texas Attorney General’s office, it indicates compliance with state regulations, adding to its credibility.
✓ Transparent Financials
Regular filings of Form 990 show that the organization practices transparency and is accountable for its financial activities.
✓ Positive Ratings
High ratings on platforms like the Better Business Bureau or Charity Navigator suggest that the organization is reputable and effectively managing its resources.
Warning signals (red flags)
⚠ Revoked Status
If the charity's status shows as revoked or there is a revocation date listed, this indicates that the organization has lost its tax-exempt status, making your contributions non-deductible.
⚠ No State Registration
If the charity is not listed in the state’s charitable solicitation registry, it may not be authorized to solicit donations in Texas, raising questions about its legitimacy.
⚠ Missing Form 990
A lack of Form 990 filings for three consecutive years can lead to automatic revocation of 501(c)(3) status. Always check for recent filings to ensure continued compliance.
⚠ Negative Reviews
If the charity has poor ratings on trusted sites like the Better Business Bureau or Charity Navigator, this might suggest financial mismanagement or other concerning practices.
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/
- Better Business Bureau Charity Reviews: https://www.bbb.org/charity-reviews
- Texas Attorney General Charitable Registration: https://www.texasattorneygeneral.gov/consumer-protection/charity-registration
San Antonio state-level oversight
In San Antonio and throughout Texas, verifying a charity's legitimacy is essential to ensure your donations are impactful. The Texas Attorney General's office maintains a charitable registration database, ensuring that organizations comply with state laws. Additionally, you can check the locally focused Better Business Bureau for further reviews of charities operating in our area, as well as the Texas Nonprofit Alliance for additional resources. Ensuring a charity’s compliance at both federal and state levels provides peace of mind for donors.