The problem
Scammers regularly take advantage of people's kindness and generosity. Whether it's a fake charity or a scheme built on inflated estimates of donated property, taxpayers should stay alert and proceed with caution. Below are the common charitable-donation scams that made the IRS 2026 Dirty Dozen list.
Fake charities
After a disaster or tragedy, scams of all kinds tend to spike. A common one: fraudsters set up fake charities to collect both donations and personal information. A few things to keep in mind before you give:
- Verify that the organization is a qualified tax-exempt organization. Donations to individuals are not deductible. Use the Tax Exempt Organization Search tool on IRS.gov to confirm an organization is eligible to receive tax-deductible contributions.
- If you give money or goods to charity, you may be able to claim a deduction if you itemize. Even taxpayers who don't itemize may still be able to deduct cash contributions. Remember: a donation only counts if it goes to a qualified tax-exempt organization.
- Keep receipts and documentation for every donation, whether cash or property.
Non-cash contribution schemes
This one isn't tied to disasters, but it's just as important to watch for. Some schemes rely on inflated appraisals of donated property — think syndicated conservation easements, art, or other assets. If you donate property or goods, keep solid records and accurately document the fair market value. Don't be tempted by promises to eliminate or drastically reduce your tax liability; those promises are the red flag.
How to report a suspected scam
Taxpayers and tax professionals can report suspected tax fraud, scams, identity theft, and other wrongdoing to the IRS. You can submit a tip confidentially from a phone, tablet, or computer at IRS.gov/submitatip. It brings the IRS's fraud-reporting options into one place and routes your tip to the right office. If you think your tax identity has been compromised, visit IRS.gov/idtheft for steps to protect your account.
Why this matters for non-residents and foreign founders
If you're new to the U.S. tax system, it can be hard to tell a legitimate charity from a convincing fake — especially in the emotional aftermath of a disaster. A quick check in the Tax Exempt Organization Search tool before you donate protects both your money and your deduction. And if you claim charitable deductions, keep clean records: the fair market value you report needs to hold up if the IRS ever asks.