As a responsible donor, it's crucial to confirm that your contributions go to legitimate organizations. Verifying a charity's IRS 501(c)(3) status is a vital step in ensuring your donation is tax-deductible and supports a credible mission.
This page will guide you through the process of verifying a charity’s status using the IRS Tax-Exempt Organization Search, checking state registration, and what to look for to protect your philanthropic efforts.
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 the tax-exempt status of organizations by entering their Employer Identification Number (EIN) or name.
Enter EIN or Name
Input the charity's EIN or its name in the search fields. This will help you locate the specific charity you are interested in and verify its IRS status.
Review Status
Ensure that the status shows 'Currently Exempt' and lists subsection 501(c)(3). This indicates that the organization is recognized as a public charity and eligible for tax-deductible donations.
Check for Revocation
Look closely to ensure there is no revocation date listed. If the charity has lost its 501(c)(3) status, your tax-deductible claim could be at risk during an audit.
Confirm State Registration
Research the organization’s registration with the Massachusetts Attorney General’s office. Each state maintains its own registry for charitable organizations that must be verified separately for compliance.
Save Your Verification
Take a screenshot or print out the verification confirmation from the IRS TEOS and the state register. Keep these documents together with your donation records for future reference.
Positive signals (green flags)
✓ Current 501(c)(3) Status
A charity that shows 'Currently Exempt' under 501(c)(3) on IRS TEOS is a positive sign that your contributions are tax-deductible and the charity is in good standing.
✓ Positive State Registration
If the charity is registered with the Massachusetts Attorney General's office, it indicates compliance with state regulations and a commitment to transparency.
✓ Good BBB Standing
A positive rating on the Better Business Bureau’s charity reviews reflects accountability and trustworthiness in the charity’s operations.
✓ Accessible Financial Reports
Charities that provide easy access to Form 990 or Schedule L show transparency regarding their financial practices and accountability in operations.
Warning signals (red flags)
⚠ No EIN Listed
If the charity does not have an EIN listed on the IRS TEOS, it may not be a legitimate 501(c)(3) organization, raising potential issues for your donation.
⚠ Revocation Date Present
A revocation date indicates that the charity is no longer eligible for tax-deductible donations, meaning your contributions could be disallowed in an audit.
⚠ Lack of State Registration
If a charity is not registered with the Massachusetts Attorney General's office, it raises questions about its legitimacy and adherence to state laws.
⚠ Negative BBB Reviews
A poor rating or negative reviews on the Better Business Bureau's charity review site can indicate operational issues or a lack of transparency.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.mass.gov/guides/charitable-organizations
Massachusetts state-level oversight
In Massachusetts, it's important to check both the IRS TEOS and the state Attorney General's charitable registration site to ensure a charity's legitimacy. The local Better Business Bureau also provides insights into a charity's reputation. Utilize Massachusetts Nonprofit Network resources for additional information and support in verifying nonprofits’ operational integrity.