01
Program share
WherePart IX, line 25: column B ÷ column A
- Normal
- The BBB Wise Giving Alliance standard is at least 65%.
- Dig in if
- Under 50%, or a big gap once joint costs move to fundraising (line 26).
Guide · Updated November 2026 · Reviewed by Amir Arani, CPA, CA
Check a charity in ten minutes.
Two free government searches and one tax form tell you most of what you need. Here is the order a CPA reads them in, and the exact lines to look at.
Step 01 · 2 min
Confirm it is real.
Search the charity's legal name or EIN in the IRS Tax Exempt Organization Search. Brand names and “doing business as” names often don't show up.
You want to see
“Pub 78 data”: the IRS list of organizations eligible to receive tax-deductible gifts. You can rely on it for your deduction.
Look twice at
The auto-revocation list. A charity lands there after three straight years without filing. Names stay on it even after reinstatement, so check for a reinstatement date before you judge.
Churches and many groups covered by a parent's group ruling are exempt without appearing in Pub 78. For those, ask for the determination letter or the parent organization's name. IRS: automatic revocation
Step 02 · 1 min
Check your state registry.
Most states require charities, and the professional fundraisers who call you, to register before asking for money. Find your state's regulator through NASCO's directory. In California it is the Attorney General's Registry of Charitable Trusts.
Registration isn't an endorsement. But a charity soliciting you that isn't registered, or is listed as delinquent, has already told you how it treats rules.
State files are also where you'll often find a charity's audited financial statements, which the IRS doesn't publish.
Step 03 · 1 min
Pull its Form 990.
The Form 990 is the charity's annual report card to the IRS, and it's public. Which version it files depends on size:
990-N
≤ $50K
normal gross receipts. A postcard with almost no numbers, so ask the charity for its financials.
990-EZ
< $200K
receipts and under $500K in assets. Four pages. No diversion question, no Schedule G Part I.
990
$200K+
receipts, or $500K+ in assets. The full return. Everything in steps 4 and 5 lives here.
Which form should it file?
Get it from the charity's page on Charity Math, ProPublica's Nonprofit Explorer, the IRS search above, or the charity's website. If you can't find it, ask: by law a charity must hand over its three most recent returns the same day if you ask in person, or within 30 days of a written request. IRS: public disclosure
Step 04 · 4 min
Read five numbers. Skip the other 300.
02
Cost to raise $1
WherePart IX line 25 column D ÷ Part VIII line 1h
- Normal
- The BBB standard is 35¢ or less.
- Dig in if
- Above 35¢, or a big jump from last year.
ASPCA, 2024: 20¢ as filed, about 38¢ with the joint costs included.
03
Months of savings
WherePart I line 22 ÷ Part I line 18 × 12
- Normal
- Roughly 3 to 12 months is common. Net assets include buildings and restricted gifts, so treat it as a ceiling.
- Dig in if
- Under 1 month (fragile), or more than 3 years of spending while it pleads urgency.
Humane World for Animals, 2025: 29.7 months. Best Friends Animal Society, FY 2025: 9.4 months.
04
CEO pay, against size
WherePart VII, Section A, column D
- Normal
- Median CEO pay is $120K at charities spending $1–5M and $749K at $500M+.
- Dig in if
- Pay well above the median for its size, especially with a weak board (step 5).
See every charity CEO paid $1M or more, ranked by pay and by share of budget.
05
What the fundraisers kept
WhereSchedule G, Part I (filed if Part IV line 17 is “yes”)
- Normal
- Many charities use no paid solicitor at all. Where they do, the charity should keep most of the money.
- Dig in if
- A fundraiser that kept half or more of what it raised.
Short on time?
We work out all five for you.
Every charity page on Charity Math shows these numbers, with a link to the line of the filing each one came from.
One trick to know: charities can split the cost of a mailing that both asks for money and “educates” between programs and fundraising. It's allowed. It also flatters the program share, so we always show the number both ways.
Step 05 · 2 min
Check the yes-or-no boxes.
The charity answers these itself, under penalty of perjury. A “yes” on the first two is rare and serious.
Part VI, line 5
Did it discover a “significant diversion” of assets? Yes = stop and read
Yes means theft, embezzlement or misuse above the lesser of $250,000, 5% of receipts or 5% of assets. 262 charities said yes in the 2025 filings. Read the explanation on Schedule O.
Part IV, lines 25a–25b
An excess benefit transaction? Yes = stop and read
An insider got more than they gave. The charity must report it, and the insider owes an excise tax.
Part IV, lines 26–28
Loans, grants or business deals with insiders? Yes = ask why
Not illegal, but read Schedule L to see who and how much.
Part VI, lines 1a, 1b, 2
Is the board independent? Yes = ask why
Compare voting members (1a) to independent members (1b). Line 2 asks about family or business ties among leaders.
Part VI, lines 12a, 13
Conflict-of-interest and whistleblower policies? Yes = ask why
Missing at a charity with millions in revenue is a governance gap.
Part XII, line 2b
Audited financial statements? Yes = ask why
A charity raising several million dollars a year without an audit deserves a question.
A “yes” on line 5 can be good news in disguise. It means someone caught the problem and the charity disclosed it. The charities to worry about are the ones that should have said yes and didn't.
Step 06 · 30 sec
Give the safe way.
Do
- Pay by credit card or check.
- Give on the charity's own website, after typing its address yourself.
- Keep a record, and watch for surprise recurring charges.
Walk away from
- Pressure to give right now.
- Thanks for a gift you never made.
- Names that sound almost like a famous charity.
- Requests for cash, gift cards or a wire transfer.
Report a scam at ReportFraud.ftc.gov and to your state charity regulator. FTC: how to donate wisely
Printable
The checklist.
0 of 12 checked.
Shortcut
Or let us read it.
Every Charity Math page does steps 3 to 5 for you, with a link to the filing line behind each number. Pages marked “Full review” are checked by a CPA. Start with the ASPCA, browse all charities, or see how we read a 990.
Quick answers
Questions donors ask.
How do I know if a charity is legitimate?
Search its legal name in the IRS Tax Exempt Organization Search. If it is listed under “Pub 78 data,” it is a recognized charity and gifts are tax-deductible. Then check that it is registered with your state charity regulator, which you can find through NASCO. Neither is an endorsement, but a charity missing from both is a reason to stop.
What percentage of a donation should go to the cause?
The most widely used benchmark, from the BBB Wise Giving Alliance, is at least 65% of total spending on programs and no more than 35¢ spent to raise each dollar. Check the program share on Form 990 Part IX, line 25, and look at line 26 for joint costs, which can make fundraising mailings count as program work.
Where can I find a charity's Form 990?
On Charity Math for the charities we cover, on ProPublica's Nonprofit Explorer, in the IRS Tax Exempt Organization Search, or on the charity's own website. By law a charity must also give you its three most recent returns: the same day if you ask in person, or within 30 days of a written request.
Does a high overhead ratio mean a charity is a scam?
No. A new charity, a small one, or one that does advocacy can have high overhead and still be honest. Overhead is a reason to ask questions. A “yes” on Form 990 Part VI line 5 (diversion of assets), a fundraiser that kept most of the money, or an insider deal on Part IV line 25 are stronger warning signs.
What are the signs of a charity scam?
The FTC lists pressure to donate right away, thanks for a donation you never made, names that mimic well-known charities, vague emotional appeals, false claims that a gift is tax-deductible, and requests to pay by cash, gift card or wire transfer. Report scams at ReportFraud.ftc.gov and to your state charity regulator.
Sources
Where this comes from.
- IRS Tax Exempt Organization Search and automatic revocation of exemption
- IRS Instructions for Form 990 (Part VI line 5, Part IV, Part IX) and Schedule G
- IRS public disclosure rules for exempt organizations
- BBB Wise Giving Alliance Standards for Charity Accountability (standards 8 and 9). The Alliance is revising its standards; these are the ones in force today.
- FTC: how to donate wisely and avoid charity scams and NASCO state regulator directory
- Charity counts: Charity Math's scan of 291,688 charity returns in the IRS 2025 e-file release. CEO pay medians: our CEO pay ranking.
Cite this page
Charity Math, “How to check a charity before you donate,” updated 2026-11-06. https://charitymath.com/guides/how-to-check-a-charity/Not tax or legal advice. Spot something wrong? [email protected]