How Do You Check If a Non Profit Is Legit?

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Verifying Nonprofit Legitimacy

  • Verify legal status with the IRS
  • Review mission, programs, and objectives
  • Check finances – income, expenses, assets
  • Examine payment methods accepted

Investigating Nonprofit Credibility

  • Check nonprofit accreditations

  • Ensure credibility of accrediting body

  • Verify absence of controversy

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To check if a nonprofit is legitimate, verify its legal status with the IRS. Search for its Employer Identification Number or name. Review its mission, programs, objectives. Check finances – income, expenses, assets. Legitimate nonprofits provide donation receipts for tax deductions. Review payment methods accepted. Legitimate groups take credit cards and checks addressed to the organization.

Investigate nonprofit accreditations. Ensure the accrediting body has credibility. Check if the nonprofit is free of controversy. New nonprofits must apply for IRS tax-exempt status before seeking funding. Individual donors should verify a nonprofit’s legal status and mission before donating.

Examine the nonprofit’s fund distribution and history. At least 60-70% of funds should go towards programs, not overhead. Nonprofits should have audited financial statements available. Watch for embezzlement red flags like significant diversion of funds. The nonprofit’s Employer Identification Number serves as its tax ID number. An EIN is needed to apply for tax-exempt status.

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