The IRS recently warned taxpayers to beware of criminals posing as charities asking for donations.

A lot is going on in the world today. Natural disasters, global conflicts, and humanitarian crises abound. People everywhere are looking to help in any way they can. Criminals know this, and they prey upon our emotional responses.

With giving a simple click away, how do we give safely and to an organization that will do as they say with the donations when there are so many options? You can always go with a large, reputable non-profit like the Red Cross or UNICEF. If you prefer a smaller organization, check out their BBB Charity Standards Rating at https://give.org. You can also use the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to help find or verify legitimate charities.

The IRS recently issued the following tips to use to protect yourself from fake charity scams:

Verify first. Scammers frequently use names that sound like well-known charities to confuse people. Potential donors should ask the fundraiser for the charity's exact name, website, and mailing address so they can independently confirm the information. Use TEOS to verify if an organization is a legitimate tax-exempt charity.

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.

Don't give more than needed. Scammers are on the hunt for both money and personal information. Taxpayers should treat personal information like cash and not hand it to anyone.

Be wary about how a donation is requested. Never work with charities that request 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 that the charity is real (IR-2023-196, Oct. 23, 2023).

As always, when you donate to a charity, get a receipt for tax deduction purposes. Remember, only IRS-recognized qualified tax-exempt organizations are eligible for deduction (not GoFundMe campaigns).

References

https://www.irs.gov/newsroom/irs-beware-of-fake-charities-check-before-donating