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Beware of Fake Charitable Organizations

Many charitable schemes peak during filing season as people prepare their returns or hire someone to prepare their taxes. Most scammer operating bogus charities may contact people by telephone or email to solicit money or financial information. 

Before you donate to a charity, at a minimum, please ask yourself the following: 

• Do the Charitable Organization name sounds similar to a widely know legitimate organization? Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. 
• Suggestion: Verify the legitimace of the organization by: calling directly the organization main office(s) and ask to speak with an administrator, and/or check the IRS website for a list of legitimate tax exempt organizations register with the IRS.   
• Do the organization is asking for your personal financial information, such as Social Security number?  Scam artists may use this information to steal your identity and money. 
• Suggestion: I cannot think of a reason for asking a taxpayer for a social security number-that is a red flag.
• Are they telling you that they only take credit cards?  People use credit card numbers to make legitimate donations but please be very careful when you are speaking with someone who called you.
• Suggestion: One option is to request to send you a payment slip in the mail.  That will give you time to reflect and investigate who is the organization.
• Are you sending Cash in the contribution envelope? 
• Suggestion: Please, do not send currency. For security and tax record purposes, contribution made by check or credit card provides documentation of the disbursement.  (Of course, you may want to exclude your typical church offerings.)

How can the IRS help?

Visit the IRS.gov website an search for "Exempt Organizations Select Check", and find most qualified charities to which donations may be tax-deductible. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shut down scams and prosecute the criminals behind them.  To help disaster victims, the IRS encourages taxpayers to donate to recognized charities.

Donations following after a major Disaster: 

Another long-standing type of abuse or fraud involves scams that occur in the wake of significant natural disasters.  They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds.

Source: IRS.gov