IRS warns donors about fake charities and inflated donation appraisals
The Internal Revenue Service is warning U.S. taxpayers to look carefully before giving to charities, identifying fake organizations and inflated appraisals of donated property as recurring charitable-contribution scams.
The agency issued Tax Tip 2026-58 on July 28, 2026. Its guidance comes as disasters and tragedies can prompt urgent public appeals for donations. The IRS said donors can reduce the risk of losing money or personal information by checking organizations before giving and keeping records afterward.
What the IRS is warning about
According to the IRS, fake charities are a common scam, particularly in the aftermath of disasters or tragedies. A solicitation may appear to support people affected by an emergency while directing money or personal information to an unqualified organization.
The warning also covers inflated appraisals tied to noncash donations. The agency specifically identified donated property such as art and conservation easements as areas where valuations can be overstated. An inflated valuation can affect the tax treatment a donor seeks for a contribution, but the tax consequences of any donation depend on the donor’s facts and applicable law.
The IRS warning is guidance for taxpayers, not an allegation that a particular named charity has committed wrongdoing. It also does not mean that every unfamiliar charity is fraudulent. Donors still need to distinguish between a legitimate organization they do not know and a solicitation that cannot be verified.
How donors can check an organization
The IRS directs donors to use its Tax Exempt Organization Search tool to verify whether an organization is qualified. Checking an organization before donating can help taxpayers determine whether it appears in the agency’s records and whether it is the type of organization that may qualify for charitable-contribution treatment under applicable rules.
Verification is only one part of the process. The IRS advises donors to retain receipts and other documentation for both cash and property donations. Those records can help establish what was given and support a taxpayer’s records if questions later arise. A receipt alone does not guarantee that a contribution is deductible, because the tax result depends on the donor’s circumstances and current law.
Donors should also be cautious when a solicitor creates pressure to give immediately or asks for a payment method that is difficult to reverse. The Federal Trade Commission separately warns that charity scammers may request cash, gift cards, cryptocurrency or wire transfers. FTC guidance flags five categories of payment methods: cash, gift cards, cryptocurrency, wire transfers and similar hard-to-reverse payments.
The FTC advises people to research charities, resist pressure and report suspected scams. Its broader charity-fraud materials describe the problem as a threat to donors and public trust, while providing prevention and enforcement background rather than identifying a new 2026 enforcement case.
What donors should do next
For someone considering a donation, the practical steps are straightforward: verify the organization through the IRS search tool, review the request without being rushed, use caution with unusual payment demands and keep documentation for any cash or property contribution.
The IRS said taxpayers can report suspected tax fraud, scams and identity theft through its reporting channels. The FTC also directs people to report suspected charity scams. Reporting does not change the tax treatment of a donation, but it gives agencies information about suspected misconduct and may help protect other donors.
The IRS notice does not quantify how many charitable scams occurred in 2026 or how much money they involved. Its purpose is preventative. For donors responding to disaster-related appeals or other urgent requests, the message is to pause long enough to verify the recipient, protect personal information and preserve a clear record of what was given.
Sources
- Keep an Eye Out for Common Charitable Contributions Scams, Internal Revenue Service
- Charity Fraud, Federal Trade Commission
- Give & Take Workshop Transcript, Federal Trade Commission
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