Charity vetting refers to the process of determining whether or not a charitable organization is eligible to receive tax exempt donations either in its country or origin or through a program sponsored in the United States for U.S. employees. This is an important service for any third-party supporting CSR giving programs. Charity vetting can be managed through several different ways.

For U.S. organizations:

  • By maintaining up-to-date tax status data from the IRS or Guidestar (which manages a database of IRS-based charity data).
  • By relying on a third party federation or membership-based organization (such as a United Way) to review the appropriate documentation and make the tax-exempt determination.

For international organizations (or NGOs, non-governmental orgs):

  • By maintaining up-t0-date tax status data from the country of origin, such as the U.K. or Australia. (Note: few countries provide such data)
  • By hiring the services of a third party to perform Equivalency Determination analysis on the organization.