Tag: <span>charitable deduction</span>

The Internal Revenue Service issued a consumer alert about possible fake charity scams emerging due to the mass-shooting in Orlando, Florida, and encouraged taxpayers to seek out recognized charitable groups.

When making donations to assist victims of this terrible tragedy, there are simple steps taxpayers can take to ensure their hard-earned money goes to legitimate charities. IRS.gov has the tools taxpayers need to quickly and easily check out the status of charitable organizations.

While there has been an enormous wave of support across the country for the victims and families of Orlando, it is common for scam artists to take advantage of this generosity by impersonating charities to get money or private information from well-meaning taxpayers. Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations.

The IRS cautions donors to follow these tips:

  • Be sure to donate to recognized charities.
  • Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, through which people may find qualified charities; donations to these charities may be tax-deductible.
  • Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution. Scam artists may use this information to steal a donor’s identity and money.
  • Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.
  • Consult IRS Publication 526, Charitable Contributions, available on IRS.gov.   This free booklet describes the tax rules that apply to making tax-deductible donations. Among other things, it also provides complete details on what records to keep.

Taxpayers suspecting fraud by email should visit IRS.gov and search for the keywords “Report Phishing.”

More information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes.”

Donating to charities you support is a very noble thing.  But, if you plan to take a tax deduction for your gift, you must have the proper paperwork.  Assembling the correct documentation can be tricky because the requirements vary based on whether the donation is cash and on the value of your gift.  For example, if you donate less than $250 in cash, a canceled check, credit card statement or similar record may be sufficient.  However, if you give more, you will need a written acknowledgement from the charity.  An additional tax form – and possibly an appraisal – may be needed for non-cash donations (depending on their value).  Lastly, the organization you donate to must qualify as a charity under IRS rules.