When considering a donation to Ride to Relief or any charity in Colorado, it’s essential to verify their IRS 501(c)(3) status. This not only assures you that your contributions are tax-deductible but also confirms that the organization is legitimate. Many donors may not realize that only qualified public charities can provide tax-deductible receipts, which is why this verification step is crucial.
This page will guide you through the simple process of checking a charity’s IRS status using the Tax-Exempt Organization Search (TEOS) tool. You will learn how to find their EIN, check for revocation status, and ensure compliance with state regulations, thereby safeguarding your donation and supporting a meaningful cause.
Step-by-step walkthrough
Access the TEOS Tool
Visit the IRS Tax-Exempt Organization Search page at apps.irs.gov/app/eos. This tool allows you to verify the tax-exempt status of charitable organizations, including 501(c)(3) entities.
Enter Organization Details
Input the charity’s Employer Identification Number (EIN) or its name in the search bar. This will pull up the organization’s details, including its current tax-exempt status.
Check Status Verification
Look for the status to show 'Currently Exempt' alongside the designation of subsection 501(c)(3). This confirms that the charity is recognized as a public charity by the IRS.
Review Revocation Date
Ensure that there is no revocation date listed. A blank revocation date indicates that the charity has not lost its tax-exempt status, crucial for maintaining your tax-deductible donations.
Consult State Regulations
Visit your state Attorney General’s website to verify the charity's registration in Colorado. Each state has its own registry to track charitable organizations, ensuring compliance with local laws.
Document Your Findings
Save a printout or screenshot of the verification results and state registry confirmation. Storing this documentation with your donation file will be helpful for tax purposes.
Positive signals (green flags)
✓ Currently Exempt Status
A status of 'Currently Exempt' in TEOS indicates the charity maintains its 501(c)(3) designation, ensuring that your donations are tax-deductible.
✓ Positive State Registration
Finding the charity registered with the Colorado Attorney General means they are compliant with state regulations, adding a layer of credibility to their operations.
✓ Consistent Form 990 Filings
Regular and timely filings of Form 990 demonstrate transparency and accountability, signaling that the organization is well-managed and committed to compliance.
✓ High BBB Ratings
A high rating on the BBB indicates overall positive reviews and suggests that the charity is trustworthy and reliable in its practices and communications.
Warning signals (red flags)
⚠ Revocation Date Present
If you find a revocation date in TEOS, this indicates that the charity has lost its tax-exempt status, making any donation non-deductible and raising questions about its legitimacy.
⚠ No State Registration
If the organization isn’t listed in your state’s charitable solicitation registry, it may be operating illegally. Check with the Colorado Attorney General to ensure compliance.
⚠ No Form 990 Filings
Charities are required to file Form 990 annually. If an organization fails to file for three consecutive years, it risks automatic revocation of its 501(c)(3) status.
⚠ Negative BBB Reviews
Check for poor ratings or negative reviews on the Better Business Bureau (BBB) website. Complaints against a charity can be a red flag about its operations and transparency.
Tools + resources
- https://apps.irs.gov/app/eos
- https://charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://bbb.org/charity-reviews
- https://www.colorado.gov/pacific/ago/charitable-solicitation
- https://www.coloradononprofits.org/
Colorado state-level oversight
In Colorado, verifying a charity's legitimacy involves more than just checking the IRS. The Colorado Attorney General’s website maintains a charitable solicitation registry, ensuring organizations are registered to solicit donations legally. Additionally, the Better Business Bureau (BBB) offers charity reviews to help donors make informed decisions. Local nonprofit associations can also be valuable resources for verifying a charity's standing and reputation in the community.