Must payment processors confirm an organization’s 501(c)(3) nonprofit status?

Asked Apr 11, 2013· 1 answer
Faisal KhanAnswered Apr 11, 2013
If you're offering a specialized discount and/or promotion that requires the non-profit status to be verified, then you should. This check can be done by searching through the Non-Profit 501(c)3 databases.

You can see the reasons listed by IRS as to why this check is done here:

  • Exempt Organizations Select Check: Function
  • Exempt Organizations Select Check: Frequently Asked Questions
Payment ProcessorsPayment Service Providers (PSP)Payment GatewaysMerchant Accounts
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