As a responsible donor, verifying a charity’s legitimacy before supporting it is essential. In Philadelphia, ensuring that a charity has IRS 501(c)(3) status helps confirm that your donations are tax-deductible and that the organization adheres to regulatory standards.
This page will guide you through the process of verifying a charity's 501(c)(3) status using the IRS Tax-Exempt Organization Search tool. By understanding how to check for revocation and compliance, you can make informed choices about your charitable contributions.
Step-by-step walkthrough
Access the IRS TEOS Tool
Go to the IRS Tax-Exempt Organization Search at apps.irs.gov/app/eos. This tool allows you to confirm an organization's tax-exempt status based on their EIN or name.
Enter the Charity's EIN or Name
Input the charity’s Employer Identification Number (EIN) or its name into the search bar. Make sure you have the correct information to get accurate results.
Verify Status
Check the results and ensure that the charity's status is listed as 'Currently Exempt' and that it falls under subsection 501(c)(3). If it does, you can proceed with greater confidence.
Check for Revocation
Ensure that there is no revocation date noted in the TEOS results, as a revoked status means the organization is no longer eligible for tax-deductible contributions.
Confirm State Registration
Visit your state Attorney General's website to check for the charity's registration as a charitable organization in Pennsylvania. This step verifies compliance with state fundraising laws.
Save Your Findings
Keep a printout or screenshot of the verification results with your donation records. This documentation will be valuable for tax purposes should you need to claim deductions.
Positive signals (green flags)
✓ Currently Exempt Status
Seeing 'Currently Exempt' under the charity's IRS status confirms that it is in good standing and eligible for tax-deductible donations.
✓ Active State Registration
An active registration with the Pennsylvania AG signifies that the charity complies with state laws regarding fundraising.
✓ Filed Form 990
The presence of a recently filed Form 990 indicates that the charity is adhering to IRS regulations and is transparent about its finances.
✓ Positive Reviews
Positive ratings on platforms like Charity Navigator or the Better Business Bureau show that the charity is reputable and trusted by other donors.
Warning signals (red flags)
⚠ Revocation Date Listed
If the IRS TEOS results show a revocation date, the charity is no longer tax-exempt. Donating to such an organization can lead to disallowed deductions.
⚠ Inactive Registration
If the state AG registry indicates that the charity is not currently registered or has an inactive status, it may not be compliant with state laws.
⚠ No Available Form 990
A charity must file IRS Form 990 annually to maintain 501(c)(3) status. Lack of a filed Form 990 for three consecutive years can result in automatic revocation.
⚠ High Percentage of Overhead Costs
If a charity spends a large portion of its funds on overhead rather than programs, it might not be maximizing the impact of your donation.
Tools + resources
- https://apps.irs.gov/app/eos
- https://charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.attorneygeneral.gov/charity/
Philadelphia state-level oversight
In Philadelphia and throughout Pennsylvania, it's important to conduct thorough checks on local charities. The Pennsylvania Attorney General maintains a charitable organization registry to help donors verify compliance. Additionally, the local Better Business Bureau provides reviews and ratings, ensuring that you can make informed decisions about where to donate. Engaging with organizations like the Pennsylvania Association of Nonprofits can also provide valuable insights into reputable charities in the area.
FAQ
What is a 501(c)(3) organization?
Why is it important to verify a charity's status?
How can I report a suspicious charity?
What happens if a charity loses its 501(c)(3) status?
How often should I check a charity's status?
Can I trust online charity evaluation platforms?
What should I do if I find discrepancies?
Other donor-verification guides
Before you make a donation, take the time to verify the charity's IRS 501(c)(3) status and state registration. This simple step empowers you as a donor, ensuring that your contributions support legitimate organizations that are committed to making a positive impact. Your diligence today can lead to a more significant difference in your community tomorrow.