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The season of giving might be over, but scammers never take a rest.
Key points
- Scammers may create fake charities or impersonate a well-known charity in an attempt to steal money from generous donors.
- When in doubt, you should do your research into the company before deciding whether to give money to them.
- Avoid giving out personal information, especially your bank account or Social Security number, to anyone claiming to be from a charity.
December is the most popular month for charitable donations, but you can give all year round. It can be a great way to support worthy causes in your community and it can earn you a tax break as well. But before you hand over any cash, it’s important to make sure you’re dealing with a legitimate organization. Otherwise, you might just be flushing money down the toilet.
Here are seven signs that the generous charity courting your wallet is really just a scammer trying to line their own pockets.
1. Your donation isn’t tax-deductible
Legitimate charities are tax-exempt organizations, and contributions you make to them can earn you a tax deduction. But if the organization you’re speaking to says that you can’t get a tax break or if they’re vague about whether you will or you won’t, that could be a sign that it’s not what it claims to be.
The IRS maintains a Tax Exempt Organization Search tool that you can use to verify the legitimacy of any charity. If you don’t find an entry for them here, that’s a strong sign…
