As a donor, taking the time to verify a charity’s IRS 501(c)(3) status is a crucial step in ensuring your contributions are used effectively. By verifying a charity, you can confirm it operates under tax-exempt status, safeguarding your right to claim tax deductions on your generous donations. In this guide, we will walk you through the steps to verify the IRS status of RideRescue and similar organizations in Little Rock, Arkansas.
We will guide you on how to use the IRS Tax-Exempt Organization Search (TEOS), check for any state-level charitable registration, and highlight important red and green flags to watch out for. Empowered with this information, you can confidently support RideRescue knowing your contributions are going to a legitimate cause.
Step-by-step walkthrough
Access the IRS TEOS
Navigate to the IRS Tax-Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. This powerful tool allows you to check the tax-exempt status of organizations by their Employer Identification Number (EIN) or name.
Search for the Charity
Enter RideRescue’s EIN or full organization name into the search box. Ensure that you spell it accurately to avoid any discrepancies. Once submitted, the results will show whether the organization is currently exempt.
Verify Status
Confirm that the charity's status shows 'Currently Exempt' and the subsection indicates 501(c)(3). This means the organization is recognized by the IRS as a public charity eligible for tax-deductible donations.
Check for Revocation
Examine the revocation date. If this date is blank, the charity has not lost its status. If there is a date, it indicates the charity is no longer recognized as tax-exempt, and your donation may not be tax-deductible.
Confirm State Registration
After verifying the IRS status, check the Arkansas Attorney General's website for the charity's registration. Each state has a separate registry to ensure charitable organizations comply with local laws.
Save Documentation
Lastly, save a printout or screenshot of your findings. Keep this documentation with your donation file as proof of verification, which may be required for tax purposes.
Positive signals (green flags)
✓ Clear IRS Status
A confirmed 'Currently Exempt' status under 501(c)(3) from TEOS is a strong indication that the charity is legitimate and eligible for tax-deductible donations.
✓ Good Standing with State AG
Finding the charity registered on the Arkansas Attorney General's website confirms compliance with state laws governing charitable organizations, enhancing trust.
✓ Positive Reviews
Positive ratings and reviews from reliable sites like the Better Business Bureau (bbb.org) signal that the charity has a good reputation and is well-regarded in the community.
✓ Transparent Documentation
Availability of Form 990 and other financial disclosures on the charity's website demonstrates transparency and accountability, which are key indicators of a responsible organization.
Warning signals (red flags)
⚠ No IRS Status
If the charity's status shows as 'Not Found' or 'No Results', this is a significant red flag. It indicates the organization may not be legitimate or is not recognized as tax-exempt.
⚠ Revocation Date Present
A listed revocation date means that the charity has lost its tax-exempt status. Donations made to revoked organizations typically do not qualify for tax deductions, putting your contributions at risk.
⚠ Inconsistent Information
If the information found on TEOS does not match what is presented on the charity’s website or solicitation materials, this inconsistency may suggest a lack of transparency.
⚠ No State Registration
If the charity does not appear in the Arkansas Attorney General's charitable registration database, it may not be legally authorized to solicit donations in the state, posing additional risks.
Tools + resources
- https://apps.irs.gov/app/eos
- https://www.charitynavigator.org
- https://projects.propublica.org/nonprofits
- https://www.bbb.org/charity-reviews
- https://www.arkansasag.gov/charities/
- https://www.afpglobal.org
Little Rock state-level oversight
In Little Rock, Arkansas, the Attorney General's Office oversees charitable registrations, ensuring that organizations like RideRescue adhere to state laws. Donors can check the AG's registry to verify if a charity is compliant. Additionally, the Better Business Bureau provides resources and ratings for local charities, helping donors make informed decisions. The Arkansas Nonprofit Alliance offers support and guidance to nonprofits, ensuring they maintain transparency and accountability, further bolstering community trust.