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.
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.