How to Verify a Non Profit Charity
Charities are a type of nonprofit organization that specializes in raising and disbursing funds to various causes, ranging from food banks to disaster relief. Although donating money to these groups has the potential to improve many lives, it is important to know how to verify the legitimacy of charities to ensure that the funds will be allocated as stated. Verifying a nonprofit charity is worth the time and effort spent as you will gain confidence that your donation will make a true difference.
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Instructions
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How to Verify a Nonprofit Charity
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Obtain the full name of the charity as well as the physical address of its headquarters. This information will allow you to search for the charity you wish to verify and eliminate the possibility of accidentally searching for a similarly named but different organization.
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Visit the charities and nonprofits portal at the Internal Revenue Service's website. The site hosts Publication 78, which is a comprehensive listing of all nonprofit organizations and charities legally recognized as legitimately nonprofit. The listing also includes charities that have been removed and should not receive future donations until they are able re-obtain legal status as a nonprofit.
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Contact the nonprofit charity's human resources department directly via phone or email and request confirmation of their 501(c)(3), or tax-exempt, status. Legitimate charities will have no issue with this request and should welcome the inquiry.
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Verify the validity of a nonprofit charity by contacting an IRS representative by telephone at 1-877-829-5500. This is a great option if you are short on time or are not able to access the Internet to search for the charity on the website.
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Tips & Warnings
Many websites of nonprofit charities offer downloadable copies of a document called an "annual report," which outlines how funding has been allocated as well as how successfully the group's initiatives have been met. This is another great way of knowing whether a certain charity is worthy of your donation.
Be wary of any alleged nonprofit charity that is unwilling to provide verification of its tax-exempt status. It is your right as a potential donor to have confirmation that your funds will in fact be used in the appropriate manner.
