The Internal Revenue Service recently warned taxpayers to beware of fake charities. Noting that scammers prey on well-intentioned givers, especially during times of natural disasters and other tragedies, the agency urged prospective donors to take time to research and verify the legitimacy of groups soliciting funds from them.
“We see repeated instances of scammers using major disasters as a way to prey on well-meaning taxpayers,” said IRS Commissioner Danny Werfel. “In these tragic situations, many people want to help, but con artists too frequently come in posing as charitable groups to take advantage of the situation, stealing money and personal information.”
The warning came in a series of “Dirty Dozen” releases featuring scams that tend to peak in the season leading up to Tax Day. Other “Dirty Dozen” topics included Employment Retention Credit schemes, faulty social media tax advice, “ghost preparers,” supposed tax shelters, and more. However, this particular word of caution springboarded off a reminder about the availability of the charitable deduction–but only for gifts to legitimate nonprofits.
The IRS had some tips to help individuals avoid scams. Noting that fake charities often use names similar to real nonprofits to confuse givers, it urged prospective donors to check up on charities before giving by using tools like its Tax-Exempt Organization Search (TEOS).The agency also encouraged wariness about requests for personal information and for certain types of payments like gift cards and wire transfers. Moreover, it said donors should not feel pressured.
“People should remember it’s important to never feel pressured to give donations immediately,” declared Commissioner Werfel. “They should do some research and only donate to clearly established charities that help victims.”
ECFA’s “Bill of Rights” for givers also emphasizes that individuals should always be able to give cheerfully without pressure from an organization or its representatives. Indeed, we believe givers should be able to trust any organization they support. That is why ECFA accredits churches and ministries based on adherence to specifically defined biblical standards of integrity and financial accountability. We encourage givers to use ECFA.org to research these organizations that can amplify the impact of their donations for the work of the Kingdom.
If you are a ministry or church that would like to be backed by the ECFA seal, explore how you can become a member. Let us help you maintain a trusted reputation, so you can focus on reaching the world for Christ.