Nonprofit Health Check Up

Nonprofit Health Check Up

Use this free interactive tool to review the overall health of a nonprofit!
Step 1: The Corporation

Go take a look at your state's Secretary of State website, and search for the nonprofit's corporate record.
Is the nonprofit's corporate registration active?

YesNo
🚩 Red Flag! 🚩

It's usually a quick and easy process to file an annual renewal with the state for the corporate registration - this needs to stay active and up to date!
Have the nonprofit's Articles of Incorporation been updated, amended, or restated in the last 10 years?

YesNo - Articles are 10+ years old
🚩 Red Flag! 🚩

Things change at nonprofits AND in state law, so it's good practice to keep the nonprofit's foundational documents (like the Articles of Inc) up to date.
Step 2: IRS Status

You can search for the nonprofit's record with the IRS online!
What kind of nonprofit status does the nonprofit have?

501c3 Public Charity501c3 Private Foundation501c4501c6Other
Has the nonprofit's IRS status been revoked?

YesNo
🚩 Red Flag! 🚩

Nonprofits are usually revoked because they did not file their required 990s for 3 years in a row. If you are revoked, that means you NO LONGER have your tax-exempt status.
Has the nonprofit filed all previous year's 990s? (excluding last year, which may not be on the website yet)?

YesNo, missing 1 or 2No, missing more than 2 previous 990s
🚩 Red Flag! 🚩

It's not a good sign that a nonprofit doesn't file their required 990. If you don't file for 3 years in a row, the nonprofit's tax-exempt status will be automatically revoked.
Step 3: Charity Registration Status

Many states have a searchable Charity Registration database online. You can usually find this by searching for the state's Attorney General's Office and looking at their information about charities.
Assuming you can search for this, does this charity appear in their state's AG database / charity search?

Yes - they are registeredNo - they don't come up in a search
This is a great sign that the nonprofit is keeping up on their compliance and doing things right! 😊
🚩 This COULD be a red flag. 🚩

If the nonprofit is NOT registered, there may be a few reasons for that, like:
1. The state doesn't require charities to register
2. The nonprofit is exempt from registering because they meet some criteria (like they bring in less than $25K)
So this may be a red flag, but not necessarily without more information!
Should be Empty: