The IRS warned taxpayers on Oct. 15—after Hurricanes Milton and Helene—about scammers who use fake charities to obtain sensitive personal and financial data from unsuspecting donors. Scammers usually establish fake charities to take advantage of others’ generosity during natural disasters and other tragic events.
“Many people want to help survivors and their families by donating to charities,” IRS Commissioner Danny Werfel noted. “Too often, criminals take advantage of would-be donors’ kindness by stealing money and personal information from well-meaning taxpayers. You should never feel pressured by solicitors to immediately give to a charity. It’s important to do the research to verify if they’re authentic first.”
According to the IRS, individuals wanting to donate should check the Tax Exempt Organization Search (TEOS) tool on IRS.gov to find verified, qualified and legitimate charities. This tool allows people to verify a charity's legitimacy, check its eligibility for tax-deductible charitable contributions and find information regarding an organization's tax-exempt status and filings.
The IRS listed tips to prevent being victimized by fake charities. These are:
• Always verify. Scammers usually use names that sound similar to well-known charities. Fake charity promoters might use emails, spurious websites, or change or "spoof" their caller ID to make it appear like a real charity is calling to request donations. Potential donors must 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 legitimately a tax-exempt charity.
• Be wary about how the donation is requested. Do not work with charities that ask for donations by giving numbers from a gift card or by wiring money. It is safest to pay by credit card or check after verifying that the charity is real.
• Keep the information private. Scammers are looking for both money and personal data. Never give out Social Security, credit cards, or personal identification numbers.
• Do not give in to pressure. Scammers usually put pressure on people to make an immediate payment. By contrast, legitimate charities are happy to receive donations at any time.
The IRS also encourages individuals who encounter a fake or suspicious charity to consult the Federal Bureau of Investigation’s Charity and Disaster Fraud resources.