How to Verify the 501(c)(3) Status of a Nonprofit

Co-authored by Rob Wu

Last Updated: October 25, 2022 References

You might want to donate to a non-profit organization so that you can get a deduction on your federal income tax. However, you need to verify whether the non-profit has received tax-exempt status from the Internal Revenue Service (IRS). In the United States, this status is called 501(c)(3) after the relevant part of the Internal Revenue Code.^{[1]
X
Research source} You can search for non-profit status by using the IRS Select Check database or by asking the non-profit to show you proof of their status.

Things You Should Know

Enter the organization’s name or EIN on the IRS Select Check website to check the status of a nonprofit.
Ask the organization for a determination letter or check the Secretary of State's website for the state in which the nonprofit is registered.
Religious organizations are automatically tax-exempt if they meet IRS requirements and may not always appear on exemption lists.

Method 1

Method 1 of 3:

Checking the IRS Database

1
Gather information about the non-profit. To properly check whether a non-profit has exempt status, you need to gather as much of the following information as possible:
- Name
- City
- State
- County
- Employer Identification Number (EIN)
2
Visit the IRS Select Check website. The IRS maintains an Exempt Organization List, which you can check using the Select Check website.^{[2]
X
Research source} Visit here: https://apps.irs.gov/app/eos/.
- You need to select a database. Choose “Are eligible to receive tax-deductible charitable contributions.”
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3
Enter the requested information. Organizations will be listed under whatever name is on file with the IRS, either their legal name or the name they’re doing business under (or both). If you enter Red Cross, then entries with either the word “Red” or “Cross” will show up. Put the name between quotation marks to search for the phrase.^{[3]
X
Trustworthy Source
Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code
Go to source}
- When searching, avoid using common words such as Foundation or the.
- You may also download the entire database of eligible organizations by clicking on the relevant link.
4
Check if the nonprofit status has been revoked. This is a separate database. Select “Were automatically revoked” from the options on this page: https://apps.irs.gov/app/eos/.
- You can search the Revocation database using the same information: name, EIN, location, etc.
- You can also search by Revocation Posting Date. Enter a date range.
- Alternately, download the entire database of organizations that have had their federal tax exemption revoked.

Method 2

Method 2 of 3:

Using Other Methods

1
Ask for a copy of the determination letter. Once an organization has been given 501(c)(3) status, the qualified non-profit will receive a determination letter from the IRS.^{[4]
X
Expert Source

Rob Wu
Nonprofit Advisor
Expert Interview. 1 April 2020.} You can ask for a copy of the letter. If the organization hesitates to show you its letter, you should hesitate to donate to them.
- The organization might claim they can’t find their letter. Tell them they can request a new copy from the IRS at 1-877-829-5500.
2
Check with your Secretary of State. In the U.S., a charity typically needs to register with the state where it is located before it can start fundraising. Check with the Secretary of State for the state where the charity is located. You can visit their website or call.
3
Identify whether a religious organization is tax exempt. Religious organizations such as churches, mosques, and synagogues do not need to apply for tax-exempt recognition. Instead, they are automatically tax exempt if they meet the IRS requirements.^{[5]
X
Trustworthy Source
Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code
Go to source} For this reason, many will not appear in the IRS Exempt Organization List. Check whether the religious organization meets the following requirements:
- It has been organized exclusively for religious purposes.
- Net earnings do not benefit any private individual or shareholder. The organization can pay a minister or other faith leader a reasonable salary. However, it cannot pay an excessive salary or transfer property to any insider for less than market value.
- The organization cannot be substantially involved in influencing legislation. For example, it cannot encourage members to contact politicians either in support or in opposition to legislation.
- The religious organization cannot participate in political campaigns. Although a church might invite a political candidate to speak, it should provide an opportunity for opposing candidates to speak as well.
- The organization’s purpose and activities cannot be illegal.

Method 3

Method 3 of 3:

Researching a Non-Profit

1
Ask for information about the non-profit. Legitimate charities should be willing to provide substantial information to potential donors. You can often find this information listed on their website.^{[6]
X
Expert Source

Rob Wu
Nonprofit Advisor
Expert Interview. 1 April 2020.} For example, they should share the following information:^{[7]
X
Trustworthy Source
Federal Trade Commission
Website with up-to-date information for consumers from the Federal Trade Commisson
Go to source}
- The charity’s identity and mission
- Costs
- Financials, including how donations will be used
- Staff and board members^{[8]
  X
  Expert Source
  
  Rob Wu
  Nonprofit Advisor
  Expert Interview. 1 April 2020.}
2
Look at the financial statements. You can learn a lot about a non-profit by reviewing their financial statements. Many non-profits put their financial information online for you to look at. You may also check a website such as GuideStar. Pay attention to the following:
- Are the statements audited? If not, then that’s a red flag.^{[9]
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  Research source}
- Do sources of revenue change dramatically year to year? That’s atypical for a non-profit.
3
Resist high-pressure sales tactics. If you feel like the charity representative is a used-car salesperson, then you are probably not dealing with a legitimate charity. Avoid any charity that tries to pressure you into giving a donation.
- For example, the rep might insist time is of the essence and not let you do proper research. There is no reason for a non-profit to apply pressure to get you to donate.
4
Identify other red flags. A fraudulent non-profit might be hard to spot. However, there are common red flags you should be aware of, including the following:
- The non-profit has a name that is similar to a better known organization.^{[10]
  X
  Trustworthy Source
  Federal Trade Commission
  Website with up-to-date information for consumers from the Federal Trade Commisson
  Go to source} They may be trying to confuse the public.
- The non-profit thanks you for a donation you don’t remember giving.
- The non-profit asks for cash donations. You should be able to donate using a check or credit card.
- The charity attempts to collect the donation quickly. For example, they ask for overnight delivery service. There’s no reason a legitimate charity would need a donation that quickly.
5
Beware of sweepstakes. Some non-profits employ sweepstakes to raise funds. Under this scheme, you get a chance to win the sweepstakes in exchange for a donation. However, federal law in the U.S. prohibits making eligibility contingent on giving a donation.^{[11]
X
Trustworthy Source
Federal Trade Commission
Website with up-to-date information for consumers from the Federal Trade Commisson
Go to source} Avoid any non-profit that employs this scheme.
6
Find information online. Fortunately, there is a wealth of information on the Internet about non-profits that is easy to access. Perform thorough research before donating to any organization. Check the following sources:^{[12]
X
Trustworthy Source
Federal Trade Commission
Website with up-to-date information for consumers from the Federal Trade Commisson
Go to source}
- Better Business Bureau’s Wise Charity Alliance. BBB accredits charities that meet its standards for accountability. You can search by charity at its website.^{[13]
  X
  Research source}
- Charity Navigator. This watchdog organization grades charities based on their financial health and their accountability.^{[14]
  X
  Expert Source
  
  Rob Wu
  Nonprofit Advisor
  Expert Interview. 1 April 2020.}
- Charity Watch. This organization analyzes the financial reports of non-profits to determine how efficiently they will use your donation. It sometimes conducts special investigations of charities.^{[15]
  X
  Research source} However, you must become a member to access their information.
- GuideStar. Use this site to obtain balance sheet data for up to 5 years and IRS filings for up to 3 years. You can also find revenue and expense data for the current year.^{[16]
  X
  Research source}

Expert Q&A
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Question

How can I check if a charity is legitimate?

Rob Wu
Digital Fundraising & Crowdfunding Expert
Rob Wu is the CEO of CauseVox, a digital fundraising platform designed for nonprofits. CauseVox works to help do-gooders raise more money with less effort. Rob has raised over $200,000 for his own nonprofit crowdfunding projects, and his work has been recognized by CNN, Christian Science Monitor, and the Wall Street Journal.

Rob Wu

Digital Fundraising & Crowdfunding Expert

Expert Answer

Support wikiHow by unlocking this expert answer.

First, check the nonprofit's website to make sure they're a legitimate organization. They should show staff members and board members, and their financials should be posted on the site as well. You can also look for form 990, an innovations post, or a determination letter. If there's not enough information on the site, check out services like Guide Star or Charity Navigator, which rate nonprofits.