IRS issues warning on charity scams in NC following hurricane relief efforts

In the wake of Hurricanes Milton and Helene, the Internal Revenue Service (IRS) issued a warning to North Carolina taxpayers about scammers posing as charitable organizations to get personal and financial information from unsuspecting donors.

Scammers commonly
set up fake charities to take advantage of peoples’ generosity during natural
disasters and other tragic events.

“Many people want to assist survivors and their families by donating to charities,” said Danny Werfel, IRS Commissioner. “Unfortunately, criminals frequently take advantage of this kindness by stealing money and personal information from well-meaning taxpayers. You should never feel pressured by anyone to donate immediately. Always verify the legitimacy of the charity first.”

Use the Tax-Exempt Organization Search (TEOS) Tool

Before donating, taxpayers are urged to use the IRS’s Tax-Exempt Organization Search (TEOS) tool available on IRS.gov to ensure a charity is legitimate. The tool allows donors to:

• Verify the authenticity of a charity.

• Confirm its eligibility to receive tax-deductible contributions.

• Search for information about an organization’s tax-exempt status and filings.

Tips to avoid fake charities

Always verify the charity’s details: Scammers often use names that resemble well-known organizations. They may send fake emails, create fraudulent websites, or use spoofed caller IDs to appear credible. Always ask for the charity’s name, website, and mailing address, and confirm these details through the TEOS tool.

Be cautious with payment methods: Avoid charities that request donations via gift cards or wire transfers—these are signs of a scam. Use credit cards or checks to donate, and only after verifying the charity’s legitimacy.

Protect your personal information: Scammers seek not only money but also personal details. Never share your Social Security number, credit card information, or other sensitive data.

Don’t feel pressured: Scammers often push for immediate donations. Legitimate charities will accept contributions at any time, so donors should take the time to research before giving.

If you suspect a fake charity, the IRS recommends visiting the FBI’s Charity and Disaster Fraud resource page for guidance.

Claiming deductions for charitable donations

Taxpayers who give
money or goods to a charity can claim a
deduction if they itemize deductions, but these
donations only count if they go to a qualified tax-exempt organization
recognized by the IRS.