New data collections are available to help contributors determine if their favorite cause is eligible to receive deductible gifts.
The IRS has overhauled revenue procedures relating to charitable contributions. The change to IRS Section 170 informs contributors and grantors about a digital list of organizations from the IRS database that are eligible to receive contributions. Donors can refer to this list to determine if their gifts are deductible.
These searchable data collections of tax-exempt organizations, are now referred to as the Tax Exempt Organization Search database. Click here to to go directly to the search. There are a total of 5 searchable databases reserved for information on nonprofit organizations eligible to receive tax-deductible donations.
The 5 Tax Exempt Organization
Search Databases
1. Publication 78 Data
This database indexes the organizations. This list shows you the deductibility codes that identify an organization as a foundation under IRS Sec. 509(a).Contributors can rely on this database to determine if donations to their organization of interest are deductible.
A section of this database shows the Exempt Organization Business Master File with additional details on the organizations. This list includes the organization’s name and the following:
Address
Affiliation code (independent, central, subordinate organization)
Deductible code
Employer Identification Number (EIN)
Exemption date
Foundation code (private or public charity)
IRS Sec. 501(c) paragraph that acknowledges the organization as exempt
When contributors are searching for organizations that can receive tax-deductible gifts, they should be alert to the fact that certain churches and governmental affiliates may not be listed. Refer to https://www.irs.gov/charities-non-profits/contributors/other-eligible-donees to see a database of these entities.
Users of the databases will not find listings of “Doing Business as” or DBA organizations. Go to https://www.irs.gov/charities-non-profits/tips-for-tax-exempt-organization-search to learn about DBA searches.
2. Automatic Revocation of Exemption
This database provides information on organizations that the IRS has automatically revoked their tax-exempt status. When an organization neglects to file the mandatory annual Form 990 for three years, the IRS removes their tax-exempt status.
The database shows the effective date of the automatic revocation. This data remains in the organization’s history. This collection of information does not necessarily show when and if the IRS reinstated the organization. Any organization that has had its exemption revoked may reinstate if they meet the requirement. The list will then contain their names, however, by laws regarding their revoked status, their name will stay in the revoked database with a notation about the reinstated date.
3. Form 990-N (e-Postcard)
The database associated with IRS Form 990-N or e-Postcard furnishes information on small tax-exempt organizations. Not all nonprofit organizations can file Form 990-N. The following organizations must file different Forms instead:
Gross receipts over $50,000: Tax-exempt organizations with annual gross receipts that are normally greater than $50,000 must file Form 990 or Form 990-EZ.
Private foundations must file Form 990-PF.
Supporting organizations: Most section 509(a)(3) supporting organizations are required to file Form 990 or Form 990-EZ.
Small organizations with annual gross receipts normally not more than $5,000) that support certain religious organizations must file Form 990-N unless they voluntarily file Form 990 or Form 990-EZ.
Section 527 (political) organizations required to file an annual exempt organization return must file Form 990 or Form 990-EZ.
Other unqualified organizations: Other organization types that are ineligible to submit a Form 990-N include:
Section 501(c)(1) – U.S. government instrumentalities
Section 501(c)(20) – Group legal services plans
Section 501(c)(23) – Pre-1880 Armed Forces organizations
Section 501(c)(24) –ERISA sec. 4049 trusts
Section 501(d) – Religious and apostolic organizations
Section 529 – Qualified tuition programs
Section 4947(a)(2) – Split-interest trusts
Section 4947(a)(1) – Charitable trusts treated as private foundations
4. Copies of Returns (new in 2018)
The IRS added the fourth and fifth databases in 2018. The fourth presents digital images of Forms 990 filed for each organization on or after January 1, 2018. This information is open to public viewing under IRS Sec. 6104.
Each organization must retain copies of Forms 990, 990-EZ, 990-PF and 990-T (990-T returns for 501(c)(3) organizations only). Initially, the data includes Form 990-series returns filed in January and February 2018. The IRS will add future Form 990-series filed returns monthly.
5. Determination Letters (new in 2018)
More digital images are in the fifth database. This listing contains copies of determination letters that identify the organization as tax-exempt, if the organization filed after January 1, 2014.
The IRS issues a Determination Letter that acknowledges and recognizes an organization as tax-exempt under the sub-section for which it applied. An organization needs to complete and submit an application form along with a fee to receive its Determination Letter.
The database contains many images of Determination Letters issued after May 2018. The IRS is adding letters and anticipates posting all Determination Letters issued since January 2014.
All five of these databases
are available for searches here.
Have questions about what databases to search and when? Get in touch with us. We have ideas to share and solutions to management and organizational questions. If you have questions about any other not-for-profit industry topics, contact our not-for-profit team leader at trent@tbfosteraccounting.com.