As a donor in Charlotte, you want to support causes that genuinely make a difference. Verifying a charity's IRS 501(c)(3) status is a crucial step in ensuring your contributions will qualify for tax deductions and truly benefit the intended cause. Knowing how to check this status empowers you as a donor.
This page guides you through the process of confirming a charity’s tax-exempt status using the IRS Tax-Exempt Organization Search (TEOS) and highlights the importance of verifying state charity registrations. By following these steps, you’ll be equipped to make informed decisions about your charitable donations.
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 search for a charity’s IRS status by entering the organization's name or its Employer Identification Number (EIN).
Enter EIN or Organization Name
Input the charity's EIN or name in the search bar. Once you do this, look for the status displayed in the results to confirm it shows 'Currently Exempt' along with the subsection '501(c)(3)'.
Check for Revocation
Ensure that the revocation date is blank on the TEOS results. If an organization has had its tax-exempt status revoked, it will not be eligible for tax-deductible donations, which can lead to issues during tax audits.
Verify State Registration
Check your state Attorney General’s (AG) website for charitable solicitation registration. Each state maintains its own registry, and verifying this can help confirm the charity is compliant with local laws.
Save Your Findings
After verifying both the IRS status and state registration, save a printout or screenshot of the findings. Keeping these documents with your donation records is essential for transparency and potential tax purposes.
Positive signals (green flags)
✓ Currently Exempt Status
A status of 'Currently Exempt' on TEOS confirms that the organization maintains its 501(c)(3) designation, enabling you to claim tax deductions for your contributions.
✓ Positive State Registration
Finding the charity registered with the state AG indicates compliance with local regulations, providing additional reassurance that the organization is legitimate.
✓ Accessible Financial Records
If the charity readily provides access to Form 990 and other financial documents, this transparency is a positive indicator of their accountability and responsible management.
✓ Good Ratings on Charity Review Sites
High ratings from platforms like Charity Navigator or Better Business Bureau reinforce the charity's credibility, indicating they are well-regarded and effective in their mission.
Warning signals (red flags)
⚠ Revocation Date Present
If the IRS TEOS indicates a revocation date, this means the charity has lost its tax-exempt status. Donations made to such organizations will not be tax-deductible, putting your charitable intentions at risk.
⚠ Inconsistent Information
If the charity's name or EIN does not match across different platforms, this inconsistency can be a sign of misinformation or fraudulent activity. Always double-check against trusted resources.
⚠ No State Registration
If the charity is not registered with your state’s AG office, it may not legally solicit donations. This could be a warning sign of a potential scam or an organization operating outside of legal requirements.
⚠ Lack of Financial Transparency
If you cannot find the charity’s Form 990 filings or other financial documents, it raises concerns about how they manage funds. Transparency is key to ensuring your donations are used effectively.
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
- North Carolina Secretary of State: https://www.sosnc.gov/CharitySearch
Charlotte state-level oversight
In Charlotte and across North Carolina, the state Attorney General’s office maintains a registry to oversee charitable organizations. This registry helps protect donors from fraudulent charities. Additionally, local chapters of organizations like the Better Business Bureau (BBB) review charitable practices, offering valuable insights into the legitimacy of nonprofits. Engaging with the North Carolina Center for Nonprofits can also connect you with resources that promote effective philanthropic practices.