The news has been filled with natural disasters, wars and other humanitarian crises around the globe. At the same time, you have likely received dozens of requests for donations to help with relief efforts. Many of these requests are from legitimate charitable organizations, but some may come from scammers attempting to take advantage of your generosity.

In recent guidance, the IRS explicitly advises taxpayers to be wary of criminals soliciting donations. As the IRS explains, if you fall victim to one of these scams, not only will your money end up in the pockets of criminals rather than with those who need it, but you will lose the ability to claim a charitable tax deduction. Plus, any personal information you share with a fake charity may be used to steal your identity.

You can help reduce the risk by following four tips:

1. Verify the Charity Before Donating
   Scammers often promote fake charities with emails or fraudulent websites or by “spoofing” a real charity’s caller ID. They may also use names that are similar, but slightly different, to well-known charities. Ask any promoter for the charity’s exact name, website and mailing address and confirm the information independently. One resource is the Tax-Exempt Organization Search tool at irs.gov.
2. Do Not Give in to Pressure
   Legitimate charities should be happy to receive donations at any time. If someone pressures you to make an immediate payment or repeatedly contacts you to create a sense of urgency, that’s usually a red flag.
3. Choose a Safe Payment Method
   The safest way to make donations is by physically delivering a check to the charity or by using a credit card online. If you choose the latter method, make sure the charity’s payment processing app encrypts your data (look for SSL or TLS protocols). If a charity asks you to donate using gift cards or by wiring money, it’s likely a scam.
4. Do Not Provide More Information than Necessary
   The IRS advises taxpayers to “treat personal information like cash and not hand it out to just anyone.”

With just a few extra minutes, you can ensure that your donations go to qualified, legitimate charities. Another option is to donate to a well-established not-for-profit that responds to a wide range of emergencies, such as the Red Cross or Doctors Without Borders.

For more information, contact Maureen Callahan at 312.670.7444 or [email protected]. Visit ORBA.com to learn more about our Wealth Management Services.