To report an unethical nonprofit organization, file IRS Form 13909 for violations tied to federal tax-exempt status and file a separate complaint with your state attorney general for governance or fundraising abuses. Both filings are free, and in most cases you can submit anonymously. Which route fits depends on what you saw: personal enrichment, political campaign activity, and operating for non-exempt purposes are federal tax issues; breaches of fiduciary duty, misuse of donations, and deceptive fundraising within a state are handled at the state level. Many serious cases warrant filing with both.
Gather Specific Evidence First
A complaint moves further when it names things. Start with the nonprofit’s full legal name and its nine-digit Employer Identification Number (EIN), which functions like a Social Security number for the organization.1Internal Revenue Service. Form 13909 Tax-Exempt Organization Complaint (Referral) Add the names and titles of the officers, directors, or staff you believe are involved.
Then pin down what happened, when, and for how much. Investigators work from timelines. Useful supporting documents include:
- Financial records such as bank statements, ledgers, or receipts showing unauthorized spending or asset transfers.
- Internal emails, texts, or memos that show the reasoning behind questionable decisions.
- Board meeting minutes that approve suspicious transactions or show a failure of oversight.
- Fundraising letters, websites, or ads containing misleading claims.
- Annual filings or internal audits showing gaps between what the organization reported and what it actually spent.
Organize the material chronologically and keep copies of everything you send. If you witnessed misconduct directly, write a dated account describing who was present and what occurred. Firsthand narrative has value even without documents attached.
Check the Nonprofit’s Public Filings
Most tax-exempt organizations file annual returns (Form 990, 990-EZ, or 990-PF) disclosing revenue, expenses, executive compensation, and insider transactions. These returns are public.2Internal Revenue Service. Copies of EO Returns Available
The IRS Tax Exempt Organization Search at IRS.gov/teos lets you look up any organization by name or EIN, confirm its exempt status, check whether that status has ever been revoked, and download Form 990 filings from 2017 forward.3Internal Revenue Service. Tax Exempt Organization Search Pay particular attention to Schedule L, which discloses loans and business transactions between the nonprofit and its insiders.4Internal Revenue Service. Exempt Organizations Annual Reporting Requirements – Form 990, Part VI and Schedule L: Banking Transactions Unusual entries there can corroborate what you already suspect.
File a Federal Complaint With the IRS
The IRS oversees federal tax-exempt status under 26 U.S.C. § 501(c)(3). Exempt organizations must operate exclusively for charitable, religious, educational, or similar purposes. None of their earnings may benefit private insiders, they cannot devote a substantial part of their activities to lobbying, and they cannot participate in political campaigns.5Office of the Law Revision Counsel. 26 USC 501 Exemption From Tax on Corporations, Certain Trusts, Etc. Breaking any of those rules opens the door to an IRS investigation.
Complete Form 13909
The official complaint is IRS Form 13909, “Tax-Exempt Organization Complaint (Referral),” available as a fillable or printable PDF from IRS.gov.6Internal Revenue Service. IRS Complaint Process – Tax-Exempt Organizations The form asks for the organization’s name, address, and EIN, then offers checkboxes for the type of violation, including personal enrichment by insiders, political campaign activity, and operating for non-exempt purposes.7Internal Revenue Service. Form 13909, Tax-Exempt Organization Complaint (Referral)
In the narrative section, describe what you know and reference specific attachments by name so an examiner can match your account to the documents. You can include your contact information to receive an acknowledgment letter, or you can file anonymously. Anonymous filers receive no confirmation.6Internal Revenue Service. IRS Complaint Process – Tax-Exempt Organizations
Submit the Form
Send Form 13909 and your supporting documents by mail or email:7Internal Revenue Service. Form 13909, Tax-Exempt Organization Complaint (Referral)
- By mail: IRS TEGE Classification, Mail Code 4910DAL, 1100 Commerce Street, Dallas, TX 75242-1027.
- By email: eoclass@irs.gov.
A letter carrying the same information and attachments is also accepted in place of the form.6Internal Revenue Service. IRS Complaint Process – Tax-Exempt Organizations
What the IRS Can Do
An organization that violates its exemption terms can lose tax-exempt status entirely, which means owing income taxes going forward and stripping donors of the ability to deduct contributions. The IRS can also impose excise taxes on specific prohibited transactions. For excess benefit transactions, where an insider receives unreasonable compensation or a below-market deal, the insider owes an initial tax of 25 percent of the excess benefit, and any manager who knowingly approved the transaction owes 10 percent. If the transaction is not corrected within the allowed period, an additional tax of 200 percent of the excess benefit applies.8Office of the Law Revision Counsel. 26 USC 4958 Taxes on Excess Benefit Transactions Private foundations face a separate self-dealing regime under 26 U.S.C. § 4941 with its own initial and additional taxes.9Office of the Law Revision Counsel. 26 USC 4941 Taxes on Self-Dealing
File a Complaint With Your State Attorney General
State oversight of nonprofits generally sits with the attorney general or the secretary of state. These offices handle internal governance, protection of charitable assets, and fundraising practices within their borders. They investigate breaches of fiduciary duty by board members, fraudulent fundraising, and mismanagement of donated funds.
Most state attorneys general maintain an online portal through a charitable trust or charities bureau. Portals typically let you upload your evidence directly and may require you to certify that your statements are true. Names, dates, and dollar amounts should match across the form and every attachment, because inconsistencies slow review.
At the state level, outcomes can include court-ordered removal of board members, civil recovery of misapplied funds, and in extreme cases involuntary dissolution of the nonprofit corporation. Some states also authorize civil monetary penalties for willful breaches of fiduciary duty. Because rules and forms differ by state, check your own attorney general’s website for the current process.
What Happens After You File
The IRS sends an acknowledgment letter after it receives Form 13909, unless you filed anonymously.7Internal Revenue Service. Form 13909, Tax-Exempt Organization Complaint (Referral) That letter is generally the last thing you will hear. Federal law prohibits the IRS from disclosing return information, including the status or outcome of any investigation, to outside parties.10Office of the Law Revision Counsel. 26 USC 6103 Confidentiality and Disclosure of Returns and Return Information One narrow exception applies to people who qualify as whistleblowers under 26 U.S.C. § 7623, who may request updates on the status of an investigation tied to their information.11Office of the Law Revision Counsel. 26 USC 7623 Expenses of Detection of Underpayments and Fraud, Etc. Investigations can take months or years depending on complexity. Keep copies of everything you sent in case an examiner contacts you.
State portals usually issue a confirmation number or digital receipt on submission. A state office may follow up for additional information or for testimony if a case moves toward litigation. Confidentiality rules restrict what the office can share about resolutions or settlements, and most will notify you only if the case formally closes or public legal action is taken.
If You Work There: Protection From Retaliation
Fear of retaliation stops many people from filing. If you work for a nonprofit that receives federal grants or contracts, federal law prohibits your employer from firing, demoting, or otherwise retaliating against you for reporting fraud, waste, or abuse to a federal agency, Congress, or an inspector general.12Justice.gov. Whistleblower Rights and Protections Employees who experience retaliation can file with the relevant inspector general or with the Occupational Safety and Health Administration (OSHA), depending on which statute applies. Deadlines vary by statute, and some are as short as 30 days from the retaliatory act, so move quickly.
Available remedies can include reinstatement, back pay with interest, and compensation for attorney fees and costs. No employer policy, non-disclosure agreement, or arbitration clause can waive your right to report fraud to a government agency.
Whistleblower Awards and Qui Tam Suits
If you have detailed knowledge of significant tax fraud, you may qualify for a financial award through the IRS Whistleblower Office. Where the tax, penalties, and interest in dispute exceed $2 million, the IRS must pay the whistleblower between 15 and 30 percent of what it collects based on the information provided.11Office of the Law Revision Counsel. 26 USC 7623 Expenses of Detection of Underpayments and Fraud, Etc. Below that threshold, the IRS has discretion to pay an award but is not required to.13Internal Revenue Service. Submit a Whistleblower Claim for Award A whistleblower claim is separate from a Form 13909 complaint. To pursue an award, file Form 211 with the Whistleblower Office.14Internal Revenue Service. Whistleblower Office If the IRS determines your claim rested primarily on publicly available information rather than original information, any award is capped at 10 percent.
When a nonprofit receives federal grant money and defrauds the government (for example, by billing for services never provided or misrepresenting how funds were used), a private individual can sue on the government’s behalf under the False Claims Act. These are called “qui tam” suits, and a successful plaintiff receives a share of any recovery.15Justice.gov. The False Claims Act Qui tam cases are complex; consult an attorney experienced in whistleblower law before filing.
Private Watchdog Complaints
Private accountability organizations accept complaints but do not trigger government investigations. The BBB Wise Giving Alliance, for example, reviews deceptive fundraising practices, failure to honor donor restrictions on gifts, violations of a charity’s own privacy policy, and the use of excessive pressure in solicitations.16BBB Wise Giving Alliance. BBB Standards for Charity Accountability A complaint here carries no legal consequence for the charity, but it can affect the charity’s public standing and works as a supplement to a government filing, particularly when the concern is misleading solicitation rather than a tax violation.