Stay safe from charity scams after disasters, and avoid fraudsters posing as charities.

Charity Scams: Protect Yourself from Fraud After Disasters

  • October 22, 2024

The Internal Revenue Service (IRS) has issued a notice urging taxpayers to be on guard for scammers posing as charities in the wake of Hurricanes Milton and Helene. They are seeing a wave of charity scams across all the affected regions.

The IRS warned in a statement issued on Oct. 15 that fraudsters have been exploiting the generosity of individuals looking to help disaster victims by soliciting donations through fake charitable organizations. These charity scams are designed to steal donations and harvest personal and financial data from unsuspecting Americans, opening the door to identity theft and other types of fraud.

“Many people want to help survivors and their families by donating to charities,” IRS Commissioner Danny Werfel said in a statement. “Too often, criminals take advantage of would-be donors’ kindness by stealing money and personal information from well-meaning taxpayers.”

How to Avoid Charity Scams

To avoid getting scammed, potential donors were reminded to be wary of high-pressure solicitations and to check that the charity is legitimate. Using tools like the Tax Exempt Organization Search (TEOS) tool can help verify a charity’s tax-exempt status and ensure it is qualified to receive tax-deductible donations.

“You should never feel pressured by solicitors to immediately give to a charity,” Werfel said. “It’s important to do the research to verify if they’re authentic first.”

Warning Signs of Charity Scams

The IRS also advised taxpayers to avoid giving out sensitive personal information, such as Social Security numbers or credit card details, and to steer clear of charities that request payment through unconventional methods like gift cards.

“Never work with charities that ask for donations by giving numbers from a gift card or by wiring money. That’s a scam,” the agency cautioned. “It’s safest to pay by credit card or check—and only after verifying the charity is real.”

IRS and FBI Warnings on Charity Scams

The IRS’s notice dovetails with a warning from the FBI about charity scams and disaster fraud. The FBI similarly urged people to be wary of scammers exploiting tragedies to solicit donations for fake charities. The FBI additionally cautioned that, after natural disasters, fraudsters may pose as contractors or government officials, committing insurance fraud and further victimizing those with damaged homes and businesses.

The IRS "Dirty Dozen" List of Tax Scams

The IRS’s latest warning is not the first time the agency has taken aim at fake charities exploiting taxpayer generosity. In April, the IRS included fake charities in its annual Dirty Dozen list of tax scams.

The Dirty Dozen campaign, which started in 2002, spotlights the most prevalent tax scams that put taxpayers, businesses, and tax professionals at risk. While these schemes often intensify around the tax filing season, they can occur any time of the year. In 2024, the Dirty Dozen included a range of scams, from fake charities to phishing attacks.

Hurricane Milton Relief Announced

The IRS also recently announced relief for taxpayers affected by Hurricane Milton, offering leniency on dyed diesel fuel penalties and extending various tax deadlines for individuals and businesses across Florida.

Hurricane Milton struck Siesta Key, Florida, on Oct. 9 as a Category 3 storm, causing widespread destruction. The storm generated more than a dozen tornadoes, claimed at least 17 lives, and left millions without power as it swept across the state.

Stay Safe from Charity Scams After a Disaster

Use these tips to keep vigilant to avoid fraudsters posing as charities and protect your personal information.

And remember, my Team and I are always here to help with any of your tax problems. Contact me or any member of my Tax Problem Solver team for help, and we'll start the ball rolling to solve whatever is going on.

You can reach us by one of the contact methods below in the blue box, or email me at Larry@TaxProblemSolver.com and we can review your specific issues and solve them. You can also click here to book a free consultation.

Would You Like to Find Out What Your
Next Best Steps Should Be?

Choose one of the 3 FREE contact methods that is easiest for you.

Schedule a Call with Us

Click the calendar button below to view our appointment calendar, and choose a day & time, and we’ll call you then.

We look forward to your free consult!

Call Us Now

Click the phone button below to either "click to call" or direct dial a number to speak with us right now. 

We look forward to speaking with you!

9-Secrets You Need to Know

When the IRS is after you, you need to be informed. What you say to the IRS can be used against you.
Get My 9 Secrets email series now. I'll also add you to my newsletter.

About the Author Larry Heinkel J.D. LL.M

Larry Heinkel is a tax and bankruptcy attorney with more than 38 years experience helping businesses and individuals, solve their state and federal tax problems. Mr. Heinkel has been extremely successful in representing his clients before IRS and DOR, and is known throughout Florida as an expert in tax problem resolution.

Leave a Comment: