Fraud Prevention Guidance to Spot and Avoid Charity Scams
The Department of Veterans Affairs (VA) provides necessary resources and education to protect Veterans from experiencing charity fraud. By raising awareness and offering guidance on how to identify and avoid these scams, we aim to ensure that Veterans can confidently support causes they care about without falling for deceitful tactics.
COMMON TACTICS OF CHARITY SCAMS
Unsolicited Contact:
Scammers may contact you unexpectedly by phone, email, text, or social media and pressure you to donate. Be cautious of high-pressure or surprise requests.
Lack of Transparency:
If a charity cannot clearly explain how your donation will be used, or refuses to provide details, this is a warning sign.
No Proof of Tax-Exempt Status:
Legitimate charities are usually registered as tax-exempt organizations with the IRS. If they cannot show this, be careful.
Look-alike Names and Websites:
Scammers often use names or websites that look or sound similar to well-known charities. Double-check the organization before donating.
PREVENTATIVE MEASURES
How to Protect Yourself
Verify Nonprofit Status:
Use the IRS Tax-Exempt Organization Search Tool or trusted sites like Charity Navigator, CharityWatch, or the BBB Wise Giving Alliance to confirm the charity is legitimate and to review its ratings.
Research the Charity:
Search online for the charity’s reputation. Look at their website, mission statement, and history to understand how they operate.
Confirm Who Is Asking:
If someone asks you to donate, verify the request by contacting the charity directly through its official phone number or website. Ask for written information such as annual reports to see how donations are used.
Protect Your Personal Information:
Do not share personally identifiable information (such as your Social Security number, bank account, or other private details) with anyone asking for donations by phone, mail, or in person.
Check Donation Taxability:
A charity may be tax-exempt but that does not guarantee your donation is tax-deductible. Confirm this before donating if you can deduct your donation on your federal tax return.
Avoid Paying Cash:
Use a credit card or write a check made out to the charity’s official name—not to an individual—to ensure secure and traceable payments.
$21 million
Total losses from charitable solicitation fraud reported by the Federal Trade Commission (FTC) in 2022. In 2023, there were 9,809 charitable solicitation reports reported to the FTC.
How to Report Suspicious Activity:
- If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with their direct deposit account, contact the VA immediately at
800-827-1000. - Veterans who suspect they have experienced fraud can find resources to file a report to the appropriate agency by visiting www.vsafe.gov or calling 833-38V-SAFE.
