As a donor, your ability to verify a charity's IRS 501(c)(3) status is crucial. This ensures that your contributions are tax-deductible and that you’re supporting a legitimate organization, like Sound Car Relief in Tacoma.
This page provides a step-by-step guide on how to check a charity's tax-exempt status, helping you make informed decisions. By following these simple steps, you can confirm that your donations are going to a credible organization and protect your financial interests.
Step-by-step walkthrough
Visit IRS Tax-Exempt Organization Search
Navigate to the IRS Tax-Exempt Organization Search tool at apps.irs.gov/app/eos. This is where you can verify the 501(c)(3) status of charities, ensuring they meet federal tax-exempt requirements.
Enter Organization Name or EIN
Input the charity's name or its Employer Identification Number (EIN). For Sound Car Relief, you would use the specific EIN associated with our organization to retrieve accurate results.
Check Status and Subsection
Look for the charity's status, which should read 'Currently Exempt.' Additionally, ensure the subsection indicates 501(c)(3), confirming it qualifies as a public charity eligible for tax-deductible donations.
Verify State Charitable Registration
Go to your state Attorney General's website to confirm the charity's registration to solicit donations. Each state maintains its own registry, which enhances transparency and trust.
Save Documentation
Before finalizing your donation, save a printout or screenshot of the verification results. This documentation is vital for your donation records and can be referenced for tax filing.
Positive signals (green flags)
✓ Currently Exempt Status
✓ Subsection 501(c)(3)
✓ State Registration Verified
✓ Positive Reviews from Trustworthy Sources
Warning signals (red flags)
⚠ Status shows 'Not Currently Exempt'
If the charity’s status indicates 'Not Currently Exempt,' it means they do not have valid 501(c)(3) status, and your donation may not be tax-deductible.
⚠ Revocation Date Present
If the verification shows a revocation date for the charity, this indicates they have lost their tax-exempt status, potentially disqualifying your donation from being tax-deductible.
⚠ Failure to Register with State AG
If the charity isn't registered with your state’s Attorney General, this could signal a lack of accountability and transparency, raising red flags about their operations.
⚠ Missing Form 990 Filings
Charities are required to file Form 990 annually. If there are consecutive non-filing issues, this may indicate financial mismanagement or operational instability.
Tools + resources
- apps.irs.gov/app/eos
- charitynavigator.org
- projects.propublica.org/nonprofits
- bbb.org/charity-reviews
- yourstate.gov/ag/charities
Tacoma state-level oversight
In Tacoma and throughout Washington, donors can verify charity registrations through the Washington Secretary of State’s Charitable Organizations Division. Additionally, the Better Business Bureau provides reviews of local charities. Always check these resources before donating to ensure your contributions are going to reputable organizations that are compliant with both state and federal regulations.