Welcome back to our tour through the IRS’s 2025 Dirty Dozen, where we highlight this year’s most devious tax scams so you can steer clear.
We’ve already covered phishing emails, bad social media advice, and fake IRS account “helpers.”
Today, let’s talk about another feel-good scam with a not-so-happy ending: Fake Charities.
Scammers in Sheep’s Clothing
Most of us want to help others, especially during tough times. Scammers know this, and they’re more than happy to exploit it.
Fake charities tend to pop up after natural disasters, during holidays, or in the middle of a crisis. Their names may sound convincing, sometimes just a word or two off from a legitimate nonprofit.
The goal? Tug at your heartstrings and drain your wallet, all while you think you’re doing good.
“Your donation is tax-deductible…”
Except it’s not—because the organization doesn’t actually exist.
These scams don’t just rob you financially; they can also jeopardize your tax return if you try to deduct a donation to a group that isn’t recognized by the IRS.
How to Spot a Charity Scam:
- They pressure you to give right now.
- They ask for donations in cash, gift cards, or cryptocurrency. (Red flag)
- Their website is vague, poorly written, or doesn’t explain how funds are used.
- They won’t provide an EIN (Employer Identification Number) or offer proof of tax-exempt status.
The IRS’s Advice? Trust, But Verify
Before you give:
- Use the IRS Tax-Exempt Organization Search Tool to check if a group is legit.
- Stick to well-known, established charities, or verify new ones thoroughly.
- Don’t let urgency cloud your judgment. Real nonprofits will still need your help tomorrow.
In Conclusion: Generosity Is Great. Scams? Not So Much.
Giving feels good: but only when your money goes where it’s supposed to. If a cause moves you, that’s wonderful. Just make sure it’s not moving your credit card info into a scammer’s hands.
Stay generous, but stay smart.
More Information
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Patty Ward
Patty has more than 30 years experience in public accounting. She reviews tax returns for high net worth clients, focusing on individual tax work. Her mission is to provide high level service to her clients, reducing their tax burdens, keeping them informed and instilling confidence.
About Smith Patrick CPAs
Smith Patrick CPAs is a boutique, St. Louis-based, CPA firm dedicated to providing personal guidance on taxes, investment advice and financial service to forward-thinking businesses and financially active individuals. For over 30 years, our firm has focused on providing excellent service to business owners and high-net worth families across the country. Investment Advisory Services are offered through Wealth Management, LLC, a Registered Investment Advisor.
