Taxpayers: Beware of Disaster Donation Scams
Recent months have seen several natural disasters in the form of Hurricanes Helene and Milton that have devastated areas in the southern Appalachian Mountains and Florida. As if these disasters are not terrible enough, it’s become a common practice for scammers to set up fake charities to take advantage of people’s generosity during such natural disasters and other tragic events. The Internal Revenue Service (IRS) recently warned San Francisco taxpayers to beware of fake charities and provided guidelines for making sure you do not get scammed.
First off, if the charitable organization you are considering is not a well-known nonprofit organization, taxpayers should double check to make sure it’s legitimate before donating. The IRS encourages use the Tax Exempt Organization Search tool to check that an organization is, in fact, a registered 501(c)(3). You can also use the tool to search for information about an organization’s tax-exempt filings.
Additionally, the IRS encourages San Francisco taxpayers to follow these tips before making a charitable donation:
Always verify. Scammers use names that sound like well-known charities to confuse people. Fake charity promoters may use emails, fake websites, or altered or “spoofed” caller ID to make it look like a real charity is calling to solicit donations. Be sure to ask the fundraiser for the nonprofit’s name, website and mailing address so they can independently confirm the information.
Be cautious about how a donation is requested. Never work with charities that ask for donations by giving numbers from a gift card or by wiring money. That’s a huge red flag of a scam. It’s always safest to pay by credit card or check — and only after verifying the charity is legitimate.
Don’t share too much information. Scammers are on the lookout for both money and personal information. Never disclose Social Security numbers, credit card numbers, personal identification numbers or passwords.
Don’t give in to pressure. Legitimate charities are happy to receive any donation at any time. Scammers often pressure people into making an immediate payment. Never, ever feel rushed to give money away — that’s the sign of a scam.
If you want to give money to a legitimate nonprofit, the IRS encourages taxpayers to review their resources on charity and disaster fraud. And don’t forget if you donate money or goods to a charity, you can claim a deduction if you itemize your deductions. That being said, these donations count only if they go to a qualified tax exempt organization recognized by the IRS.
When it comes to natural disasters, it’s unfortunate we have to consider whether a donation request is legitimate or a scam. That being said, the last thing the IRS wants is for taxpayers to be taken advantage of by scammers. Use their website resources and always verify if the requesting charity is legitimate before giving away money. Check with an experienced San Francisco tax attorney if you have questions about deductions and charitable donations.
Allison Soares is a partner and tax attorney at Vanst Law LLP. It doesn’t matter the issue: audits, collections, appeals, international disclosures, grumpy people— Allison enjoys fixing problems. In addition to her legal work, she has worked in accounting and utilizes that knowledge to her advantage while handling cases involving EDD audits from San Francisco to San Diego.
