Dakotaland FCU Blog

Caution to Taxpayers; Scammers Targeting Disaster Donations

Written by IRS Tax Tips – IRS.gov | Nov 21, 2024 3:55:53 AM

Scammers commonly set up fake charities to take advantage of people’s generosity during natural disasters and other tragic events. Taxpayers should use the Tax Exempt Organization Search tool to check that an organization is legitimate before they donate money.

Tips for donating safely:

Follow these tips before making a charitable donation:

  • Always verify. Scammers use names that sound like well-known charities to confuse people. Fake charity promoters may use emails, fake websites, or altered or "spoofed" caller ID to make it look like a real charity is calling to solicit donations. Potential donors should ask the fundraiser for the charity's name, website, and mailing address so they can independently confirm the information. Use the TEOS tool to verify if an organization is a legitimate tax exempt charity.
  • Be cautious about how a donation is requested. Never work with charities that ask for donations by giving numbers from a gift card or by wiring money. That's a scam. It's safest to pay by credit card or check — and only after verifying the charity is real.
  • Don't share too much information. Scammers are on the lookout for both money and personal information. Never disclose Social Security numbers, credit card numbers, personal identification numbers or passwords.
  • Don't give in to pressure. Scammers often pressure people into making an immediate payment. In contrast, legitimate charities are happy to get a donation at any time. Donors should not feel rushed.

Taxpayers who encounter a fake or suspicious charity should see the FBI’s resources on charity and disaster fraud.

Claim a deduction Taxpayers who give money or goods to a charity can claim a deduction if they itemize deductions, but these donations count only if they go to a qualified tax-exempt organization recognized by the IRS.

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