Alyssa McBride, CPA •
As we approach the holiday season, more charitable organizations are reaching out and requesting donations, but how do you know these organizations are tax exempt?
You can verify a charity’s tax-exempt status using the IRS’s Exempt Organizations Select Check Tool. By simply entering the name of the organization and making sure the “Are eligible to receive tax-deductible charitable contributions” button is checked you can search and verify that the organization is eligible.
As we approach the holiday season, more charitable organizations are reaching out and requesting donations, but how do you know these organizations are tax exempt?
You can verify a charity’s tax-exempt status using the IRS’s Exempt Organizations Select Check Tool. By simply entering the name of the organization and making sure the “Are eligible to receive tax-deductible charitable contributions” button is checked you can search and verify that the organization is eligible.
Keep in mind when using this tool that certain donees will not show up. If the organization is small enough to receive less than $5,000 in gross receipts, they likely will not be listed. Subordinate Groups are not listed out separately, and doing-business-as (DBA) names will not show up in the database either.
Many times you won’t need to go to the IRS website to verify a charity’s exempt status. Typically donation request letters will be clear whether your donation is tax deductible. If you donate through Go Fund Me, they have a “Certified Charity” badge that appears if the donation is tax deductible. Also keep in mind that you must keep receipts for donations and with donations of $250 or more you must have an acknowledgement from the organization.
Many times you won’t need to go to the IRS website to verify a charity’s exempt status. Typically donation request letters will be clear whether your donation is tax deductible. If you donate through Go Fund Me, they have a “Certified Charity” badge that appears if the donation is tax deductible. Also keep in mind that you must keep receipts for donations and with donations of $250 or more you must have an acknowledgement from the organization.
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