As severe weather and natural disasters affect communities across the country, the Internal Revenue Service (IRS) is reminding taxpayers to stay alert for scammers who take advantage of public generosity by setting up fake charities. In times of crisis, fraudulent groups often target well-meaning donors in an effort to steal personal or financial information. While communities focus on rebuilding and recovery, it’s essential to ensure that donations meant for relief efforts reach those who genuinely need it. 

Protect Yourself: Verify Charities with the IRS

To avoid falling victim to charity scams, the IRS urges potential donors to verify the legitimacy of any charity before making a contribution. The Tax Exempt Organization Search (TEOS) tool on the IRS website is a valuable resource for ensuring your donation goes to a qualified and trustworthy organization. Through ‘TEOS’, donors can:

• Confirm a charity’s legitimacy and tax-exempt status.
• Check if the organization is eligible to receive tax-deductible donations.
• Review additional information about the charity’s filings and history.

How to Avoid Fake Charity Scams

Follow these tips to protect your donations and ensure they go to reputable organizations:

• Always verify: Scammers often create names that closely resemble well-known charities. Be cautious of unsolicited emails, websites, or phone calls asking for donations. Some scammers may "spoof" caller IDs to make it appear as if a legitimate charity is contacting you. Always ask for the charity’s name, website, and mailing address, and independently verify the information using the TEOS tool on IRS.gov.
• Be careful how you donate: Avoid charities that request donations via gift cards or money transfers. These are red flags for scams. Instead, use credit cards or checks and ensure the charity is verified.
• Protect your personal information: Never share sensitive details like Social Security numbers, credit card numbers, or personal identification numbers with anyone soliciting a donation.
• Resist pressure: Scammers often rush potential donors into making immediate payments. Legitimate charities welcome donations at any time. Don’t let high-pressure tactics influence your decision.

The IRS also advises anyone encountering suspicious or fake charities to refer to the FBI’s resources on Charity and Disaster Fraud for more information.

Claiming a Charitable Deduction

If you donate money or goods to a legitimate, IRS-recognized charity, you may be eligible to claim a deduction on your taxes, provided you itemize deductions. Donations only qualify if made to approved tax-exempt organizations, so always verify before donating.

As communities across the country face the impacts of severe weather and disasters, let’s ensure our contributions are going where they are needed most. By taking these steps to protect yourself, you can provide meaningful support and make a genuine difference for those in need.