As a donor, you have every right to ensure that your charitable contributions are going to legitimate organizations. Verifying a charity's IRS 501(c)(3) status is a crucial step in this process. Knowing the tax-exempt status of a nonprofit can not only guarantee that your donations are tax-deductible but also help you support organizations that truly make a difference in the community.
This page will guide you through the step-by-step process of verifying a charity’s status using IRS databases, as well as provide tips on recognizing red flags and green flags when assessing a charity. By the end, you will be equipped with the knowledge to confidently support charities like Wheels for Hope.
Step-by-step walkthrough
Visit IRS TEOS
Go to the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This official tool allows you to search for charities by their Employer Identification Number (EIN) or organization name.
Enter Information
Input the EIN or the name of the charity you wish to verify. For Wheels for Hope, you can find its EIN on our website or previous donation receipts.
Check Status
Look for the status of the organization in the search results. It should say 'Currently Exempt' with the subsection noted as 501(c)(3). This confirms that the charity is recognized as a tax-exempt organization.
Review State AG Registry
Each state has its own Attorney General (AG) registry for charitable organizations. Check the New York State AG website to confirm Wheels for Hope is registered for charitable solicitation in New York.
Save Verification
After you have confirmed both the IRS status and the state registration, save a printout or screenshot of the verification for your donation records. This will be helpful for tax purposes.
Positive signals (green flags)
✓ Positive IRS Status
A 'Currently Exempt' status at the IRS TEOS confirms that the charity is recognized as a legitimate 501(c)(3) organization, allowing for tax-deductible donations.
✓ State Registration Confirmed
If the charity appears on the New York State AG registry, it indicates that the organization meets state requirements for charitable solicitation.
✓ Accessible Financial Records
A reputable charity will have its financial records, including Form 990 filings, readily accessible for donors. This transparency is a good sign.
✓ Positive Reviews
Check resources like Charity Navigator or the Better Business Bureau (BBB) for positive reviews and accreditation, which signal a trustworthy organization.
Warning signals (red flags)
⚠ No Current Exemption
If the IRS TEOS indicates that the organization is not currently exempt, it may mean that the charity has lost its tax-exempt status. Avoid donating until verified.
⚠ Revocation Date Present
If the TEOS shows a revocation date, this indicates that the charity has had its status revoked due to non-compliance, such as failing to file Form 990 for three consecutive years.
⚠ Lack of State Registration
If the charity is not registered with the New York State Attorney General's office, it may not be legally allowed to solicit donations in the state.
⚠ Missing Required Documents
A legitimate charity should provide access to its Form 990 filings. If these documents are unavailable, it raises questions about transparency.
Tools + resources
- apps.irs.gov/app/eos
- charitynavigator.org
- projects.propublica.org/nonprofits
- bbb.org/charity-reviews
- ag.ny.gov/charities
- nass.org/can-I-vote
Buffalo state-level oversight
In Buffalo and throughout New York State, it’s important to ensure that the charities you support are registered with the New York State Attorney General’s office. This office maintains a registry of charitable organizations and oversees their compliance with state laws. Additionally, the Better Business Bureau offers charity reviews to help you make informed decisions. Resources like the New York State Nonprofit Association can also provide guidance on supporting local nonprofits effectively.
FAQ
What is a 501(c)(3) organization?
Why should I verify a charity's status?
What does it mean if a charity is revoked?
How often should I verify a charity?
What resources can help with verification?
What details should I save after verification?
Can I report a suspicious charity?
Other donor-verification guides
Before donating, empower yourself by verifying the charity’s status using the steps outlined above. By doing so, you ensure that your contributions to Wheels for Hope and similar organizations are secure and recognized for tax benefits. Your diligence supports ethical giving in our community and helps those in need.