The Internal Revenue Service has released its annual "dirty dozen" tax scams for 2013. One of them is "impersonating a charitable organization" in the midst and aftermath of a natural disaster. (h/t Larry Ladd/Jim Schmid of Grant Thornton LLP)
A long-standing type of abuse or fraud is scams that occur in the wake of significant natural disasters.
Following major disasters, it’s common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Scam artists can use a variety of tactics. Some scammers operating bogus charities may contact people by telephone or email to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds.
They may attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources. Bogus websites may solicit funds for disaster victims. As in the case of a recent disaster, Hurricane Sandy, the IRS cautions both victims of natural disasters and people wishing to make charitable donations to avoid scam artists by following these tips:
- To help disaster victims, donate to recognized charities.
- Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. IRS.gov has a search feature, Exempt Organizations Select Check, which allows people to find legitimate, qualified charities to which donations may be tax-deductible.
- Don’t give out personal financial information, such as Social Security numbers or credit card and bank account numbers and passwords, to anyone who solicits a contribution from you. Scam artists may use this information to steal your identity and money.
- Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.
Call the IRS toll-free disaster assistance telephone number (1-866-562-5227) if you are a disaster victim with specific questions about tax relief or disaster related tax issues.
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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1 comment:
I think that even more potent – even sanctioned “Disaster Relief Frauds” happens from CITY Governments’ astonishing illegal dispersion of federal money Cities provided from the Feds! Some of the grants and funds that the Federal Government gives to local cities to be distributed to Faith-Based and Nonprofit Organization for assisting disaster victims: “the Federal Stafford Act,” “McKinny-Vento,” “Emergency Shelter Grants,” “Emergency Solution Grants,” “Community Development Block Grants.”
However, TOO MANY cities are not monitoring the nonprofits and faith-based groups. In fact, some nonprofits receive “emergency shelter” dollars although they provide NO emergency shelter! And far too many organizations receive money based on close political ties, and without providing required documentation that would expose the lack of qualification necessary for funds.
Tens of thousands of us Hurricanes Katrina and Rita evacuees became displaced, and some of us exiled from our former hometowns –primarily because of Cities’ cronyism and awards of BILLIONS of Disaster Relief dollars, unlawfully to faith-based organization –and some of those organizations weren’t even legitimate !!!!
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