IRS Warns of Fake Charities
The Internal Revenue Service (IRS) has warned about the widespread presence of fraudulent charities that deceive well-intentioned donors. To protect your donations, it is essential to use the IRS's Tax Exempt Organization Search (TEOS) tool, available on IRS.gov, to check the status of a charity.
TEOS allows you to:
- Confirm the authenticity of the charity.
- Check if the charity is eligible to receive tax-deductible charitable contributions.
- Access information about the organization's tax-exempt status and filings.
Additionally, the IRS advises people to consult the FBI's resources on Charity and Disaster Scams if they encounter a suspicious or fake charity.
Criminals often set up fake charities to exploit people's generosity. Their main objectives are to acquire money and personal information, which they can use for identity theft. These fraudulent charity promoters use various tactics, such as sending deceptive emails, creating fake websites, or spoofing via caller ID to impersonate legitimate charities. They often target vulnerable populations, such as seniors and individuals with limited English proficiency.
To protect yourself from falling victim to fake charity scams, consider the following tips:
1. Check First: Always ask fundraisers for the exact name of the charity, its website, and its shipping address. Verify this information using the TEOS tool to confirm the legitimacy of the organization.
2.Don't give in to pressure: Scammers often pressure people to make immediate payments. Legitimate charities are happy to receive donations at any time. Donors should not feel rushed to make contributions.
3. Do not make contributions greater than necessary: Scammers are looking for both money and personal information.
4. Be cautious with Donation Requests: Avoid charities that ask for donations via gift card numbers or wire transfers; These are clear indications of a scam. It is safer to donate by credit card or check, but only after verifying the charity's authenticity.
In conclusion, while the desire to support those in need in times of crisis is laudable, it is essential to exercise caution when making charitable contributions. By following the advice provided by the IRS and staying alert against potential scams, you can ensure that your generosity reaches those who really need it, while also protecting yourself from unscrupulous people posing as legitimate charities.