Especially prevalent around the holiday season and usually targeting the elderly, false charitable organizations often scam people who are looking to make a donation they can deduct on their tax return before the end of the year. Remember, even if the organization is legitimate, it must be qualified in order to count as a tax deduction. Your friend’s gofundme will not count for tax purposes.
Use these IRS tips to help keep from getting taken advantage of with your charitable contributions:
Don’t allow yourself to be rushed or pressured. Scammers often use high-pressure sales techniques to try to coerce people into donating immediately while a real charity is happy for donations whenever they get one and doesn’t need to push anyone into an immediate donation.
Pay attention to the forms of payment available. A credit card or check is the most secure way to pay – after doing your research on the charity, of course. A legitimate charity should never ask you to wire money or confirm by sending you a Google code etc.
Be aware of how much information is needed and don’t give more than is actually necessary. Most charities shouldn’t need things like your ss number, pin for your debit card or your birthday. If you are feeling uncomfortable and think they are asking for too much, take some time and regroup/do more research on the organization.
Enjoy this Holiday Season!
Laura Fleig
Fleig Financials, LLC
