IRS Warns of Post-Hurricane Charity Scams; Provides Resources to Verify Legitimate Organizations

by | Oct 30, 2024

Following Hurricanes Milton and Helene, the IRS is urging taxpayers to stay vigilant against scammers posing as charitable organizations to steal personal and financial information from unsuspecting donors.

Fake charities often appear after natural disasters and other crises, preying on the goodwill of people eager to help those affected. “Many individuals want to support survivors and their families through donations,” said IRS Commissioner Danny Werfel. “Unfortunately, criminals exploit this kindness to steal both money and sensitive personal information. It’s important to avoid feeling pressured to give immediately and instead research charities to ensure they’re legitimate.”

Using the IRS Tax-Exempt Organization Search (TEOS) Tool

Before making a donation, donors are advised to use the IRS’s Tax-Exempt Organization Search (TEOS) tool on IRS.gov to verify that charities are qualified and legitimate. The TEOS tool allows users to:
– Confirm a charity’s legitimacy,
– Check its eligibility to receive tax-deductible contributions, and
– Access information about an organization’s tax-exempt status and filings.

Tips for Identifying Fake Charities

Here are some essential tips to avoid falling victim to charity scams:

1. Always Verify: Scammers may use names that resemble established charities to deceive people. They may also use emails, fake websites, or “spoof” caller IDs to appear legitimate. Donors should ask for the charity’s name, website, and mailing address to confirm its details independently. The TEOS tool is a great resource to verify tax-exempt organizations.

2. Be Cautious About Payment Methods: Avoid charities that request donations through gift card numbers or wire transfers. These are red flags. For security, donate via credit card or check, but only after verifying the charity’s authenticity.

3. Limit Personal Information: Scammers often seek personal details along with donations. Avoid sharing Social Security numbers, credit card information, or personal identification numbers.

4. Avoid Pressure Tactics: Scammers frequently push for immediate donations. Legitimate charities will welcome support at any time, so donors should take their time and avoid feeling rushed.

If you come across a suspicious or potentially fake charity, the IRS recommends consulting the FBI’s resources on Charity and Disaster Fraud to learn more.

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