IRS Warns Against Fake Charities Exploiting Disaster Relief Efforts

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WASHINGTON, D.C. — In the wake of Hurricanes Milton and Helene, the Internal Revenue Service (IRS) is alerting taxpayers to the increased risk of scams involving fraudulent charities. These scams typically exploit the goodwill of individuals eager to contribute to disaster relief efforts, with the intent of pilfering personal and financial information from unsuspecting donors.

The IRS has observed that scammers often establish fake charities during times of crisis, leveraging the public’s desire to assist those affected by natural disasters. This fraudulent activity not only diverts essential funds from legitimate relief efforts but also endangers donors’ personal information.

IRS Commissioner Danny Werfel emphasized the need for caution, stating, “Many people want to help survivors and their families by donating to charities. 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.”

To assist taxpayers in verifying the legitimacy of charities, the IRS recommends using the Tax Exempt Organization Search (TEOS) tool available on IRS.gov. This tool provides valuable information, enabling donors to confirm a charity’s legitimacy, check its eligibility for tax-deductible contributions, and review its tax-exempt status and filings.

The IRS also offers several tips to help potential donors avoid falling victim to fake charities:

  1. Verification: Always confirm the authenticity of a charity. Scammers may use names resembling well-known organizations to mislead donors. Potential donors should request detailed information about the charity’s name, website, and mailing address and verify these details using the TEOS tool.
  2. Donation Requests: Be wary of charities requesting donations via gift card numbers or wire transfers, as these are common scam tactics. Legitimate charities typically accept donations via credit card or check and do not pressure donors into immediate contributions.
  3. Protect Personal Information: Avoid sharing sensitive information such as Social Security numbers, credit card details, or personal identification numbers. Scammers often seek both financial support and personal data.
  4. Resist Pressure: Fraudsters may attempt to rush donors into making hasty decisions. Genuine charities appreciate donations at any time and will not exert undue pressure on potential contributors.
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For taxpayers who itemize deductions, contributions to qualified tax-exempt organizations recognized by the IRS are eligible for tax deductions. However, these deductions are only valid if the donation is made to a legitimate entity.

The IRS’s warning serves as a crucial reminder for individuals to exercise due diligence and caution when donating, ensuring that their contributions reach the intended recipients and effectively support disaster relief efforts.

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