How to research a nonprofit
Seven things to know when researching a nonprofit
Here’s the basics, more detailed information follows:
Nonprofit status is determined by the IRS.
The IRS announces the nonprofit’s status in a Letter of Determination, which donors can request or search for online.
The Letter of Determination includes the nonprofit’s Employer Identification Number (EIN).
Donors can research the nonprofit using their name or the nonprofit’s EIN to look them up on the IRS website or on GuideStar.
Donors can use the nonprofit’s form 990l filed annually with the IRS, to review income and expenses, and additional information such as who serves on the nonprofit’s board.
State databases for charity and nonprofit research may also be available for searches.
Before you donate, review the nonprofit’s privacy policy or ask them how your information is used and whether it is sold or shared with others.
Here are the details
A nonprofit is an organization that has received a letter from the US Internal Revenue Service (IRS) determining if the organization qualifies, for instance, as a 501(c)(3). The term 501(c)(3) refers to a portion of the IRS code that grants federal tax exemption for charities and private foundations.
Letters of Determinations are available to the public. A request can be made directly to the nonprofit, a search can be done on the IRS’s website, or the Letter of Determination may have been uploaded to the nonprofit’s GuideStar profile. Letters of Determination on GuideStar can be found in the Operations section.
GuideStar is a good research source. It includes over 1.8 million profiles for charities and nonprofits in the United States.
A nonprofit’s GuideStar profile shows whether contributions to the nonprofit are tax-deductible. GuideStar also provides data such as the subject area covered by the nonprofit, population served, its North American Industry Classification System (NAICS) code, Standard Industrial Classification (SIC) code(s), IRS filing requirement, tax forms, and if provided, links to the nonprofits social media (Twitter, Facebook, Instagram) and blog.
In the letter of determination, provided by the IRS, the nonprofit is assigned an Employment Identification Number (EIN). The EIN number, also referred to as federal tax identification number, is normally found on donor receipts, or a vendor may request the EIN to set up a nonprofit in their payable/receivable system. This number is like an individual’s social security number, except this one is more publicly available, and is used by the nonprofit when filing forms required by the IRS, for instance, Form 990.
The IRS strongly recommends nonprofits have a board of directors with a minimum of three people serving on the board. Some states require nonprofits to have a board.
Instead of driven by an individual, a board allows a nonprofit to be directed by a team. In fact, it is better if a nonprofit is not personality-driven, a focus of a future blog post. You can find out who serves on a nonprofit’s board by reviewing Part IV. of the nonprofit’s Form 990.
One of the requirements of a board is a document called bylaws—these are the guiding rules of the board of directors. Nonprofits do not have to make their bylaws public, but they may choose to in order to provide transparency and accountability.
Check your state for charity information and resources. The Secretary of State of Washington, for instance, provides expansive donor resources: a database search of registered charities, commercial fundraiser activities reports, donor FAQs. Washington state donors can also find out whether they need appraisals on non-cash items, review best practices for donating vehicles or donating professional services, and download documents required by the IRS to claim federal tax deductions for noncash gifts.
When researching a nonprofit, look for one that resonates with you and has easy-to-find information, and one that you’ll find joy in contributing to annually.
Research info & links for Woman of Wonder
May 2018, Woman of Wonder applied for IRS status as a 501(c)(3 and received its letter of determination on June 18, 2018. View here.
You can search for Woman of Wonder on the IRS’s site here: https://apps.irs.gov/app/eos/
You can find Woman of Wonder’s profile on GuideStar here: https://www.guidestar.org/profile/83-0598189
Woman of Wonder’s 990EZ is found here on the IRS website as a downloadable PDF, here.
Woman of Wonder’s privacy policy is found here.
For more information, our contact information is listed on our Contact Us page.