As a thoughtful donor, verifying the legitimacy of a charity is essential to ensure your contributions are going to a qualified organization. With many charities claiming to be tax-exempt, it can be challenging to navigate the landscape and confirm their IRS 501(c)(3) status. In this guide, we will walk you through the process of using the IRS Tax-Exempt Organization Search (TEOS) to verify a charity’s status effectively.
Understanding how to check a charity’s tax-exempt status not only protects your contributions but also ensures you can claim tax deductions where applicable. This page will equip you with the knowledge to verify a charity's IRS status, check for any revocation, and inform you about additional resources to ensure your donations are both impactful and tax-deductible.
Step-by-step walkthrough
Access the IRS TEOS Tool
Visit the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This tool allows you to search for organizations that have been granted tax-exempt status.
Enter EIN or Name
Input the Employer Identification Number (EIN) or the name of the charity (RideRebirth) into the TEOS search box. Ensure the spelling is correct to get accurate results.
Check for 'Currently Exempt'
Review the search results carefully. You should see a status of 'Currently Exempt' along with the subsection noted as 501(c)(3). This indicates the organization is eligible for tax-deductible donations.
Verify State Registration
In addition to the IRS check, visit your state Attorney General's website to confirm that the charity is registered for charitable solicitation. Each state maintains its own registry of authorized charities.
Document Your Findings
Save a printout or screenshot of the TEOS results and state registration. Keep this documentation with your donation records for future reference and to substantiate your tax deductions.
Positive signals (green flags)
✓ Transparency in Reporting
A legitimate charity will make their IRS Form 990 available for public viewing. This form provides crucial information about the nonprofit's finances and operations.
✓ Positive State Registration
If the charity is listed as registered with the state Attorney General's office for charitable solicitation, this is a strong indicator that the organization is compliant with state regulations.
✓ Consistent Good Reviews
Positive feedback and high ratings on sites like Charity Navigator or the BBB show that the organization is well-regarded and trusted by donors.
✓ Effective Communication
An organization that is responsive to inquiries and openly shares information about their programs and finances demonstrates a commitment to transparency and accountability.
Warning signals (red flags)
⚠ Revocation Status
If the TEOS shows a revocation date or indicates the organization is no longer exempt, this is a significant red flag. Donations to revoked organizations may not be tax-deductible.
⚠ Mismatch Information
If the name or EIN you enter does not match what is listed in TEOS, proceed with caution. This could indicate that the organization is not legitimate or may have changed its status.
⚠ Missing State Registration
If the charity is not registered with the state Attorney General's office, it may not be authorized to solicit donations in your state. This could affect the legitimacy and transparency of the organization.
⚠ Negative Reviews
Check for negative reviews or complaints about the charity on sites like the Better Business Bureau. Poor ratings can indicate potential issues with the organization's transparency or operations.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://www.bbb.org/charity-reviews
- https://www.atg.wa.gov/charities
- https://www.afpglobal.org
Seattle state-level oversight
In Seattle and throughout Washington State, ensuring a charity is compliant with state regulations is crucial. The Washington State Attorney General’s office provides a charitable registration database where you can research local nonprofits. Additionally, the Better Business Bureau (BBB) offers charity reviews to help donors make informed decisions. Engaging with local resources like the Washington Nonprofit Association (WNA) can also enhance your understanding of nonprofit operations in the region.