Donating your time or money to a nonprofit organization can be an incredibly rewarding way to make a positive impact on your community. However, it's important to do your due diligence and verify a nonprofit as the first step.

With over 1.8 million nonprofits registered with the IRS, the landscape can be overwhelming. Fortunately, there's a valuable tool to help you verify nonprofits - Candid search. This extensive resource provides detailed profiles on all registered nonprofits in the United States. With Candid search, you can access critical information that will help you evaluate a nonprofit's credibility and mission alignment.

From financial records to leadership details, the data available on Candid search empowers you to make informed decisions about where to direct your charitable giving or the nonprofits you partner with. In this article, we'll walk you through simple steps you can take to research nonprofits and ensure your generosity is working hard for the causes you care about most.

 Verify a nonprofit in 5 simple steps

1. Search for a nonprofit

Searching for nonprofits on Candid search couldn't be easier. This comprehensive database allows you to look up organizations by name, Employer Identification Number (EIN), or relevant keywords. Within seconds, you'll see a list of nonprofits that match your search. This is a great way to get a high-level overview of all the nonprofits that fit your search criteria.

2. Verify a nonprofit’s financials, mission, and more

To begin, select the nonprofit organization you were looking for or one that catches your interest from the search results you've gathered. Selecting one will allow you to access its profile on Candid search. These profiles provide detailed information about the organization's operations, goals, and overall impact, all without needing to download documents like a nonprofit's Form 990.

When examining the nonprofit profile, focus on key details that offer insights into the organization. Look for its stated mission, which outlines its main purpose and objectives, and identify the specific areas it aims to address. Also, explore the different programs offered by the organization to understand how it fulfills its mission within the community. Consider the leadership team, noting their names and positions, to get an idea of the management structure and experience. Pay attention to the demographics information, which highlights who works at and leads the organization.

Lastly, review the financial details such as revenue, assets, expenses, and income sources. By thoroughly examining these key points, you will be better prepared to evaluate the nonprofit's transparency and trustworthiness.

3. Check a nonprofit’s IRS status

All organizations in the United States, except religious organizations and churches, that qualify as a 501(c)(3) filed a document known as Form 990 to the IRS, which is frequently referred to simply as "990s." This specific form serves a critical purpose by offering a detailed breakdown of important financial and operational information regarding an organization.

After you have conducted your search and clicked on a nonprofit organization that piques your interest, you can locate their Form 990 on the right side of the summary section in their nonprofit profile. If you wish to gain a deeper understanding of how to locate and examine a nonprofit’s 990 forms, there are resources available that will guide you through the process.

4. Use Candid’s Seals of Transparency to filter based on a nonprofit’s information

Candid's Seals of Transparency are designed to assist you in quickly assessing the credibility and reliability of a nonprofit organization with ease. When an organization takes the initiative to claim its nonprofit profile on Candid, it opens the door to the possibility of earning various Seals by providing self-reported information.

After an organization successfully meets the requirements for each Seal, these distinguished seals will be visibly displayed next to the organization's name in the search results, as well as on their respective profile page.

To give you a clear understanding, here is a simple breakdown of the specific information that is required for each level of the Seals:

• Bronze Seal: This level includes basic details about the organization, such as its name, mission statement, and physical location.
• Silver Seal: To achieve this level, an organization must provide program details that specify the target population they aim to serve.
• Gold Seal: Organizations that attain this Seal need to share important financial information, demographics regarding their leadership team, and details about their board members.
• Platinum Seal: This highest level requires the nonprofit to present a comprehensive strategic plan, as well as measurable program results.

If you are interested in verifying whether a nonprofit organization has certain key information readily available on its profile, you can use the Seals of Transparency filter located under the Organization tab. This feature will allow you to narrow down your search results to focus specifically on organizations that meet your criteria.

5. Analyze nonprofit salaries and executive compensation

For a more in-depth understanding of nonprofit salary trends and financial dynamics, you can rely on Candid’s Nonprofit Compensation Report. This report is recognized as the most comprehensive and trusted analysis available when it comes to nonprofit compensation data. The information presented in this report is derived from detailed IRS data, which means it offers a highly accurate, thorough, and authoritative source of information regarding nonprofit salaries and financial trends.

To assist you in your research, we perform the extensive task of analyzing salaries and benefits by collecting data from over 200,000 individual observations sourced from nearly 124,000 distinct organizations within the nonprofit sector. This allows our report to serve as an essential tool for anyone looking to benchmark salary levels within nonprofit organizations. By utilizing our report, you can effectively define and review various trends in nonprofit compensation, gaining valuable insights that can inform your decisions and strategies.

If you wish to dig deeper into nonprofit salary trends, our Nonprofit Compensation Report provides you with the necessary resources to do so. You can visit our website and access the report to explore the data and insights that will help you understand the compensation landscape within the nonprofit sector.