By Andras Kosaras, Arnold & Porter LLP
Even if your foundation collects an organization’s IRS determination letter (which is not required legally), your foundation must still ensure that the status is current through one of the methods below.
- IRS Exempt Organizations Select Check is a free online database that is updated monthly providing basic data on nonprofits. Choose the option for organizations eligible to receive tax-deductible contributions and enter the organization’s information. An organization’s tax status will be reported with a code such as PC, SO, and PF, as nonprofits with similar deductibility and paperwork requirements are grouped together in the database.
- Charity Check is a one-stop due diligence tool offered by GuideStar that provides up-to-date information on all nonprofits in a user-friendly format. ASF members can subscribe at a discounted rate.
Whichever tool you use, be sure your foundation documents the tax status by printing your search or storing it electronically. Continue reading