Last Updated: | Author: Munir Ardi
Before donating, verify the organization’s identity, federal tax status, public filings, state fundraising rules, and payment recipient. These checks can help you spot inconsistencies, but no IRS listing, charity rating, or low overhead ratio by itself proves that a nonprofit is honest or effective.
Use this guide to evaluate a specific organization and decide what additional questions to ask. For a broader starting point, see our guide to choosing nonprofit organizations to donate to.
1. Confirm the Organization’s Identity and IRS Status
Start by recording the organization’s exact legal name, any alternate name it uses, its Employer Identification Number (EIN), mailing address, and official website. Compare those details with the donation page and any appeal you received. An EIN identifies a tax account; it does not by itself prove that an organization is tax-exempt or that a particular payment page belongs to it.
Search the IRS Tax Exempt Organization Search (TEOS) by legal name or EIN. TEOS can show federal tax-exempt status, eligibility to receive tax-deductible contributions, filings such as Forms 990, 990-EZ, 990-PF, or 990-N, determination letters, and certain revocation records. Review the record rather than relying on an organization’s own claim.
A matching IRS record supports the organization’s federal tax status; it does not certify how well the organization uses donations, verify every fundraiser bearing its name, or guarantee that a particular gift is deductible for you. Deductibility depends on the recipient and applicable tax rules. The IRS explains its rules for charitable contributions, including why gifts to specific individuals generally are not deductible. Some eligible organizations—including churches, certain group-affiliated organizations, and government entities—may not appear in the search. Small organizations may also have different filing requirements. If a name is missing, check spelling, alternate names, and affiliation before drawing a conclusion. See the IRS pages on other eligible donees and which exempt organizations must file annual returns.
If TEOS shows an automatic revocation, check whether the organization has since been reinstated and ask it for the determination letter or current documentation. Do not treat a search result as the only check: compare the EIN and legal name directly with the organization’s own verified contact information.
2. Read Public Filings for Context
Federal tax-exempt organizations generally make specified annual returns and exemption applications available for public inspection, subject to exceptions. The IRS’s public disclosure rules explain what records may be available. Depending on its size and type, an organization may file Form 990, Form 990-EZ, Form 990-PF, or the brief electronic Form 990-N; some organizations, including churches, are not required to file the standard annual return. Therefore, “no Form 990 found” is not proof of fraud.
When a Form 990 is available, read it alongside the organization’s website, audited financial statements if published, annual report, and program descriptions. Part IX reports functional expenses across program services, management and general, and fundraising. These categories can help you understand how spending is classified, but accounting allocations and mission needs differ between organizations.
Do not use a universal “75%” or “80%” program-spending threshold as a pass/fail test. A percentage does not show whether services achieve results, whether reserves are prudent, or whether the organization is investing in needed staff and systems. Charity Navigator explains that overhead alone does not establish impact and does not award extra points simply for lower overhead. Instead, compare several years where possible, ask what the programs accomplished, and look for explanations of large changes, deficits, related-party transactions, or unusually high fundraising costs.
| Record or check | What it can tell you | What it does not prove |
|---|---|---|
| IRS TEOS | Federal tax-exempt records, certain filings, and eligibility information for deductible gifts | Program quality, a particular fundraiser’s authenticity, or personal deductibility in every case |
| Form 990 or equivalent filing | Reported finances, governance information, and program descriptions | A complete independent audit or a guaranteed measure of impact |
| State charity regulator | Whether registration is required and whether the organization has filed in that jurisdiction | That every organization must register in every state or that registration is an endorsement |
| Charity evaluator or transparency profile | Additional published information, evaluation criteria, or self-reported disclosures | A universal guarantee of honesty, effectiveness, or religious compliance |
Requirements, filings, and evaluator profiles can change. Check the current official record and read each evaluator’s methodology before relying on it.
3. Check State Fundraising Rules
Many states require charities to register before soliciting donations, but requirements and exemptions vary. A charity operating nationally may face different rules depending on where it solicits and what activities it conducts. The IRS maintains a state-by-state overview of charitable solicitation requirements; use it as a starting point and confirm details with the relevant state regulator. The National Association of State Charity Officials also provides state regulator resources.
Registration is not an endorsement, and an organization may qualify for an exemption. If you cannot find a record, ask the state regulator whether registration applies to that organization and solicitation. This is more reliable than assuming that every unlisted organization is illegitimate.
4. Use Charity Evaluators as Additional Evidence
Third-party profiles can make research easier, but their methods and coverage differ. Read what each profile actually measures and when it was last updated.
- Charity Navigator publishes ratings based on its stated evaluation methods. A rating is one input for comparison, not a promise of results or a substitute for checking the exact organization.
- Candid’s Seals of Transparency reflect information nonprofits submit to their profiles. A seal indicates a level of disclosed information under Candid’s criteria; it is not, by itself, an independent certification that the nonprofit is effective.
- BBB Wise Giving Alliance evaluates charities against its accountability standards and says it does not rank or grade them. A missing report can mean the organization has not been evaluated, rather than that it failed an evaluation.
An unrated or unprofiled organization is not automatically a scam. Consider its size, age, location, mission, and the evaluator’s coverage. If an evaluator publishes a concern or advisory, read the underlying explanation and ask the organization for a response before deciding.
If you are researching a specific international medical relief organization, our separate article on how to evaluate Doctors Without Borders as a charity can serve as a case-specific example. Apply the same verification steps to any organization; the link is not an endorsement.
5. Watch for Donation Scams and Misleading Appeals
Scammers may exploit disasters, current events, or emotional appeals, but legitimate organizations can also describe urgent needs. Pause when a solicitor pressures you to give immediately, refuses basic questions, makes vague claims, or uses a name or web address that closely resembles a well-known charity. Verify the exact legal name and donation destination independently.
The Federal Trade Commission recommends researching a charity and being cautious about payment requests involving cash, gift cards, or wire transfers. See the FTC’s donating safely and avoiding scams guidance. A familiar payment processor does not prove the fundraiser is genuine, and a peer-to-peer payment request is not automatically fraudulent; confirm who receives the money and whether the donation is being made to the charity or to an individual.
- Do not use a link in an unexpected text, email, or social post as your only source. Navigate independently to the organization’s verified website or contact it using details from a trusted public record.
- Check that the donation page names the intended legal recipient. For a third-party fundraiser, read who controls the funds, how fees and disbursements work, and what happens if the stated goal changes.
- Do not share account passwords, one-time codes, or unnecessary personal information with a solicitor. Use a payment method that gives you a record, and save the receipt and appeal.
- Review your payment confirmation and account statements for the amount, recipient, and any recurring authorization. Contact your financial institution promptly if a transaction is unauthorized.
Report suspected fraud to the FTC and the relevant state charity regulator. Preserve messages, receipts, web addresses, and payment details in case an investigator asks for them.
Save This Nonprofit Verification Checklist
- [ ] Match the charity’s legal name, EIN, website, and donation recipient.
- [ ] Search IRS TEOS and review the status and available filings.
- [ ] Read recent financial and program information; do not judge by overhead alone.
- [ ] Check state solicitation requirements where the appeal is directed.
- [ ] Read charity evaluator methods and the date of any profile or report.
- [ ] Verify third-party fundraisers, payment requests, fees, and recurring terms.
- [ ] Save the appeal, receipt, and payment confirmation.
A Muslim Perspective
For Muslim donors, checking how a charity handles restricted donations can support the principle of amanah (trust). If you are giving zakat, ask whether the organization accepts zakat, how it distinguishes zakat from general sadaqah, how it handles administrative costs, and who determines recipient eligibility. Policies differ, and a statement such as “100% zakat” should be understood from the organization’s written explanation rather than treated as a universal religious rule.
A transparency seal or financial filing does not establish Shariah compliance. If investment practices, reserves, or allocation of zakat matter to your decision, ask the organization specific questions and consult a qualified scholar for religious guidance. This article does not issue a fatwa or determine whether a particular donation fulfills a religious obligation.
Frequently Asked Questions
How can I check if a nonprofit is legitimate?
Confirm its exact legal name and EIN, search the IRS Tax Exempt Organization Search, review available filings, check applicable state solicitation rules, and verify that the donation page pays the organization you intend to support. Use charity evaluator profiles as additional evidence, not as a guarantee.
Does 501(c)(3) status prove that a charity is trustworthy?
No. IRS recognition provides information about federal tax-exempt status and, where applicable, eligibility to receive tax-deductible contributions. It does not certify a charity’s effectiveness, guarantee honest conduct, authenticate every fundraiser using its name, or determine whether a gift is deductible for your individual tax return.
What should I do if a nonprofit does not appear in IRS TEOS?
Check the spelling, legal name, EIN, and any parent or group affiliation, then review IRS guidance on eligible organizations that may not be listed. Some churches, government entities, group-affiliated organizations, and small organizations may have different listing or filing circumstances. Contact the organization or the relevant regulator before concluding that it is fraudulent.
Do all nonprofits have to file Form 990?
No. Filing requirements depend on the organization’s type and circumstances. Some organizations file Form 990-EZ, Form 990-PF, or Form 990-N, while certain organizations, including churches, generally have filing exceptions. Check the IRS filing rules before treating a missing Form 990 as a warning sign.
What percentage of donations should a charity spend on programs?
There is no universal percentage that proves a charity is effective or legitimate. Program, management, and fundraising costs vary by mission and accounting practices. Review several years of financial information and ask what outcomes the programs achieved instead of relying on one overhead ratio.
Are donations to personal crowdfunding campaigns tax-deductible?
Donations made directly to a specific individual are generally not deductible as charitable contributions. A crowdfunding site may host both personal fundraisers and campaigns that benefit eligible charities, so check who legally receives the gift, how funds are disbursed, what fees apply, and what receipt is provided. Consult IRS guidance or a tax professional about your circumstances.
What should I do if I suspect a charity donation scam?
Stop communicating through the suspicious link or number, verify the organization through independently found contact details, and do not send requested cash, gift cards, or wire transfers. Keep messages and receipts, contact your financial institution about unauthorized payments, and report suspected fraud to the FTC and your state charity regulator.
Disclaimer: StartGrants.com is an independent information portal, not the IRS, a charity regulator, or a tax adviser. Information and program records can change. Verify current details with the relevant official source, and consult a qualified tax professional or scholar for individual tax or zakat questions.
