Tips to help taxpayers make sure their donations go to legitimate charities

When disaster strikes, Americans can always be counted on to help. That help comes in countless ways, but often the easiest way to help is by donating money to charities.

Sadly, criminals are just as likely to answer the call after a disaster or emergency as the millions of people who open their wallets. Scammers solicit donations to fake charities and can pose as employees of legitimate charities or federal agencies to dupe disaster victims trying to get disaster relief.

Although some legitimate charities do contact people out of the blue, people should always be suspicious of unsolicited contact.

Taxpayers donating money should keep a few things in mind:

Use the IRS Tax Exempt Organization Search tool to find or verify qualified charities. Donations to these real charities may be tax deductible.
Research a charity before sending a donation to confirm that the charity is real and to know whether the donation is tax deductible.
Always get a receipt and keep a record of the donation.
Review bank and credit card statements closely to make sure donation amounts are accurate.
Keep scammers’ tricks in mind:

Legitimate charities do not ask for gift cards, cash, or wire transfers.
Scammers may claim to work for the IRS or another government agency.
Thieves may pose as a representative of a legitimate charity to ask for money or private information from well-intentioned taxpayers.
Scammers can change their caller ID to make it appear they are a legitimate organization calling from a legitimate phone number.
Scammers make vague and sentimental claims but give no specifics about how your donation will be used.
Scammers set up bogus websites using names that sound like real charities.
Bogus organizations often claim a donation is tax deductible when it’s not.
Disaster victims should know:
Disaster victims can call the IRS disaster assistance line at 866-562-5227. IRS representatives will answer questions about tax relief or disaster-related tax issues.

Donating to a charity is a great way to help others after a disaster or emergency. If taxpayers suspect a scam or fraud, they can report it to The Federal Trade Commission.

More Information:
National Center for Disaster Fraud
DisasterAssistance.gov
Publication 3067, IRS Disaster Assistance – Federally Declared Disaster Area


"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.  
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Mia Verc, CPA;  Janice Papais, CPA