Last updated: March 2026. This guide focuses on U.S.-based donors giving to registered nonprofits. It does not cover international aid organizations or donor-advised funds, which have different regulatory frameworks.
Americans give more than $500 billion to charity every year — and con artists steal an estimated $1 billion of it through bogus appeals, according to the Federal Trade Commission's Consumer Sentinel Network data. Every legitimate contribution diverted to a fraudster is money that never reaches a food bank, animal shelter, or disaster-relief effort.
The problem is not giver generosity. Predatory scammers exploit that generosity with fake organizations, copycat names, and aggressive tactics. A well-meaning supporter can easily be deceived without knowing what to look for. Research before giving is the single most effective defense.
This guide covers 8 concrete tips every supporter should know before giving. How we evaluated these tips: Each recommendation is drawn from published guidance by the FTC, IRS, state attorneys general, and established charity watchdog organizations including GuideStar and CharityWatch. You will learn how to verify whether an organization is legitimate, which warning signs signal a donation fraud, and how to confirm your money reaches the cause you care about.
Here is a quick preview of the 8 tips:
Research the charity using watchdog tools before you give.
Spot the red flags that reveal an illegitimate appeal.
Give directly to verified organizations — not third-party solicitors.
Verify where your charitable contribution actually goes.
Handle unsolicited requests with caution.
Use secure payment methods every time you give.
Use charity research organizations to double-check before giving.
Report fraud quickly to protect other givers.
What Are Common Charity Scams? (And Why They Work)
These donation fraud schemes fall into a few recognizable patterns. Impersonators create fake charities with names nearly identical to well-known ones. A con artist might use "American Red Cross Relief Fund" instead of the real "American Red Cross." Disaster-relief fraud spikes after hurricanes and wildfires, when bogus groups flood social media before legitimate organizations have mobilized. Crowdfunding cons set up campaigns for causes that do not exist, sending contributor money straight to the fraudster.
These schemes work because of psychology. Bad actors use urgency: "give now or children go without meals tonight." They use emotion: photos of suffering animals or disaster victims. They use authority mimicry: logos and language borrowed from real organizations. These three hooks push supporters to act before they stop to verify. The FTC received over 100,000 fraud reports related to imposter schemes in a single recent year — a category that includes charity impersonation — illustrating how widespread this tactic has become.
A fake organization cannot withstand scrutiny. These groups avoid sharing a physical address, a registration number from the federal tax authority, or audited finances. Legitimate charitable organizations welcome those questions. Knowing what con artists do is the first step toward giving safely and confidently.
Tip 1: Research the Charity Before You Donate
Before you donate a single dollar, spend five minutes checking the organization. Three free watchdog tools make this task simple.
Charity Navigator (charitynavigator.org) rates nonprofits on financial health and accountability. A four-star rating identifies reputable groups that meet best practices for philanthropic giving. GuideStar (now Candid) shows IRS Form 990 filings, so you can see program spending versus overhead. CharityWatch assigns letter grades — a grade of C or below is a signal to investigate further before contributing.
Confirm the organization holds IRS 501(c)(3) status using the Tax Exempt Organization Search at apps.irs.gov. Registered groups are listed there. If you cannot find a group on that list, do not give.
Search the organization name plus the word "scam" or "complaint" in Google to surface any past issues. A long list of scam complaints is a clear danger signal. Also check how long the group has been active. An organization that launched two weeks after a major disaster is worth a closer look before you contribute.
When evaluating a nonprofit, consider these questions that only a well-established organization will answer confidently: What is your program expense ratio? Do you publish audited financial statements? Who sits on your board? In our review of common pitfalls, the most frequently missed step is simply confirming the organization's name matches exactly what appears on the IRS database — a small detail that catches impersonators immediately.
Tip 2: Spot Red Flags That Signal a Charity Scam
Before you give, learn to recognize the warning signs of an illegitimate appeal. These red flags are common across most donation schemes.
Vague mission statements. Con artists rely on emotional language and avoid specifics. A real nonprofit can tell you exactly what programs it runs, where it works, and what it measures.
Pushy tactics. Phrases like "give right now or this chance disappears" are deceptive by design. Legitimate organizations do not issue ultimatums. The FTC explicitly identifies high-pressure solicitation as one of the most reliable indicators of a bogus fundraising operation.
Unusual payment requests. Any appeal asking for bank wires, prepaid cards, Venmo, or cryptocurrency is a warning sign. These methods are nearly impossible to reverse.
Copycat names. Bad actors pick names close to real ones to divert contributions. A well-documented example: after Hurricane Katrina, investigators identified more than 4,600 illegitimate websites soliciting disaster-relief gifts within weeks of the storm — nearly all with names mimicking legitimate relief organizations. Always verify the exact organization name before giving.
No published financials. Transparent organizations publish annual reports and Form 990s. If a group refuses to share financial data, treat that as a serious indicator of problems.
Requests for cash or money orders. Phone and door-to-door solicitors who insist on cash have no paper trail by design. Cash gifts to a campaign organizer — rather than directly to the nonprofit — are a frequent method used in dishonest fundraising operations documented by state attorneys general.
Tip 3: Give Directly to Verified Organizations — Not Third-Party Fundraisers
Third-party solicitors are not the same as the groups they claim to support. When you contribute through a crowdfunding campaign or a professional fundraising firm, little of your money may reach the actual organization. Regulators call this a recurring fraud setup involving groups that solicit donations on behalf of others.
By law, professional fundraising companies can keep a large cut of every dollar they collect. Some retain 50 percent or more. State reports have documented campaign organizers who kept 90 cents of every dollar raised. A 100-dollar gift might deliver only 10 dollars to a verified nonprofit.
State attorneys general offices across the country regularly publish annual reports listing professional solicitors by the percentage they retain. As New York Attorney General Letitia James stated: "New Yorkers give generously to charities to support causes they care about, and they should know that their donations are being used responsibly. Every year my office releases the Pennies for Charity report to help New Yorkers understand where their donations are going" (NY AG Press Release). These public records are searchable and are one of the clearest tools for evaluating third-party efficiency.
Verify that any fundraiser is officially affiliated with the organization before you donate. Visit the official website directly, typing the URL yourself rather than clicking a link in an email. Look for a direct giving page, not a third-party crowdfunding campaign.
Legitimate groups welcome givers who contribute directly. If a solicitor resists when you ask the charity for its contact information or official affiliation, treat that as a danger signal.
Tip 4: Verify Where Your Charitable Donation Actually Goes
Knowing an organization exists is not enough. Before giving, confirm that your donation will reach the programs you care about. Understanding how a nonprofit spends money is the clearest way to spot a fraud scheme hiding behind a legitimate name.
Reputable groups typically spend at least 65 to 75 percent of their revenue on programs, not on administrative costs or solicitation overhead. But as Laurie Styron, CEO of CharityWatch, notes: "There's a huge difference between a legitimate charity and an efficient charity" (CharityWatch NPR Interview). Legitimacy and efficiency are separate questions — check both. The Better Business Bureau's Wise Giving Alliance — the BBB's charitable standards program — sets its benchmark at 65 percent or more directed to programs; CharityWatch sets its top-grade threshold at 75 percent or higher. A contributor giving 100 dollars to an organization that spends only 30 percent on programs is effectively supporting the cause with just 30 dollars. The watchdog platform grades nonprofits partly on this ratio, so a four-star-rated nonprofit is a reliable benchmark.
IRS Form 990 is the public financial filing every registered 501(c)(3) must submit. You can find it for free on GuideStar (now Candid). It shows total revenue, how much went to programs, and how much went to salaries and overhead. Reading just the top-line numbers takes about five minutes. The 990 also discloses the names and compensation of the five highest-paid employees — a useful detail if a group's leadership salaries appear disproportionate to its program spending.
Your gift is tax-deductible only if the organization holds 501(c)(3) status. Verify this at the Tax Exempt Organization Search tool at apps.irs.gov — the nonprofit lookup tool maintained by the federal tax authority. If a group claims deductible status but does not appear there, that is a serious problem.
When in doubt, ask the charity directly: what percentage of my support funds your programs? A trustworthy group will answer without hesitation.
Tip 5: Avoid Donation Scams from Unsolicited Requests
Fraudsters reach givers through every channel available: email, social media DMs, phone calls, and door-to-door collections. Unsolicited contact is where most donation fraud begins. Styron puts the principle simply: "Choose the Charity, Don't Let The Charity Choose You" (CharityWatch NPR Interview).
After a major disaster or tragedy, bogus groups flood social media within hours. Scammers create fake charities with official-sounding names, post photos of real victims, and solicit contributions before legitimate organizations have mobilized. The emotional pull is deliberate. A supporter who acts quickly is one who has not verified anything. According to FTC guidance on disaster-related giving, fraud reports spike within 24 to 72 hours of major disasters — the window when bad actors are most active and public vigilance is lowest.
Phone solicitations follow a similar playbook. A caller claims to represent a local police fund or veterans organization, uses urgent language, and asks for a credit card number on the spot. Never give financial information or personal data to an inbound caller. Ask them to mail you written materials instead — a scammer will not send a legitimate paper trail.
For email appeals, do not click giving links embedded in unsolicited messages. Phishing emails mimic real organizations with convincing logos and language, often harvesting personal data before any "giving" page appears. Navigate directly to the group's official website to contribute.
You can register your phone number at DoNotCall.gov to reduce solicitation calls, but note that legitimate charities are sometimes exempt from those restrictions. Healthy skepticism is still the best defense. One practical rule: if you did not initiate the contact, do not make a financial decision during that same interaction. Give yourself 24 hours and look up the organization independently.
Tip 6: Use Secure Payment Methods When You Donate to Charities
How you pay matters as much as where you give. Fraudsters steer supporters toward payment methods that are impossible to reverse — that is a core mechanic of most payment-based donation fraud operations. Knowing which methods are safe protects your giving.
Safe methods: Credit cards offer the strongest protection. If a charge turns out to be unauthorized, you can dispute it with your card issuer under the Fair Credit Billing Act — federal law gives you up to 60 days from the statement date to dispute unauthorized charges. Contributing by check directly to the nonprofit also creates a clear paper record. Always give through the organization's official website over an HTTPS connection.
Methods to avoid: Wire transfers, store cards, peer-to-peer apps like Venmo or Cash App, and cryptocurrency are all difficult or impossible to reverse once sent. A fraudster who asks for any of these payment forms is counting on that irreversibility. Legitimate nonprofits do not require these methods — only fraudulent operations do.
Before entering any payment information online, check the website for a privacy policy. A real organization discloses how it stores and uses your data. A missing privacy policy on a giving page is a warning sign worth taking seriously.
Save your confirmation email and any receipt. Charitable contributions to registered 501(c)(3) organizations are tax-deductible, and the tax agency requires documentation. Keep records for at least three years. For gifts of $250 or more to a single organization in a calendar year, the IRS requires a written acknowledgment from the group — not just your credit card statement — to claim the deduction.
Tip 7: Use Charity Navigator and Other Tools to Help You Research Charities
Before making a gift to any nonprofit, turn to established watchdog organizations. Four platforms help givers separate reputable charitable organizations from fake charities quickly and help you avoid scams before they start.
Charity Navigator (charitynavigator.org) rates nonprofits on financial health and accountability. It uses a four-star scale. A four-star rating means the group meets best practices for philanthropic giving. The platform evaluates more than 230,000 nonprofits and also flags which groups publish audited financials. Its methodology is publicly documented, which is itself a transparency signal. But remember that overhead alone does not tell the full story. As Dan Pallotta argued in his widely viewed TED talk: "Don't ask about the rate of their overhead — ask about the scale of their dreams" (The way we think about charity is dead wrong). Use these tools to get the full picture, not just one number.
GuideStar (now Candid) shows IRS Form 990 filings. Search by name to see total revenue and program spending. This is a fast way to check a nonprofit's financial picture.
CharityWatch gives letter grades based on solicitation efficiency. An A-rated nonprofit spends 75 percent or more on programs. A D or F grade means most contributions go to overhead. CharityWatch is particularly rigorous about how it counts program expenses — it scrutinizes whether raising-money costs are being classified as "public education" to inflate program ratios, a practice some organizations use to appear more efficient than they are.
BBB Wise Giving Alliance checks organizations against 20 governance standards. Look for the BBB Accredited Charity seal before you give. The Better Business Bureau's program evaluates more than 11,000 groups nationwide.
Most states have a state charity registry through the Secretary of State or Attorney General office — a registry search there confirms the group is a legal, registered solicitor. Bookmark one of these watchdog sites so you can use it before your next gift. Note that not every legitimate nonprofit is rated by every watchdog platform — small or new groups may not yet be listed — but the absence of a rating is different from a negative rating and should be factored in accordingly.
Tip 8: Report Scams Quickly to Protect Other Donors
Reporting a fraud scheme protects more than your own money. It creates a public record that shuts down illegitimate operations and warns other givers. Knowing where to report means your experience contributes to real enforcement efforts.
FTC (Federal Trade Commission): File a report at ReportFraud.ftc.gov. The FTC tracks donation fraud patterns and shares complaint data with more than 3,000 law enforcement agencies. Reports you submit may directly contribute to enforcement actions against repeat offenders. The FTC's Consumer Sentinel database, which aggregates complaint data, is a primary tool federal and state investigators use to identify patterns and target high-volume fraud operations.
FBI Internet Crime Complaint Center (IC3): Online charity fraud falls within IC3's jurisdiction. File at ic3.gov, especially if your contribution involved an electronic transfer or large dollar amount. You can also file a complaint with your state consumer protection office for faster local action.
Your state Attorney General: Most state AG offices have a consumer protection division that investigates fraudulent charitable activity. Find yours at naag.org. State-level enforcement is often faster for local solicitors operating without proper registration.
If you suspect a copycat is impersonating a real nonprofit, report it to the genuine organization directly. Their legal team can send cease-and-desist letters and escalate to regulators.
For suspicious crowdfunding campaigns on GoFundMe or Facebook Fundraisers, use the built-in flag or report button on each platform. Both platforms have fraud review teams. Acting quickly limits how many additional givers the scammer can reach.
Frequently Asked Questions About Charity Scam Prevention
How can donors protect themselves from charity scams?
Givers protect themselves by combining research with skepticism. Look up any nonprofit on the watchdog platforms before contributing. Watch for red flags: vague mission language, pushy asks, and requests for prepaid cards or electronic transfers. Give directly through an organization's official website rather than through unsolicited links. These steps stop most donation fraud before it starts.
What prevention tips should every donor follow?
Eight tips cover the essentials: (1) research before giving using watchdog tools; (2) spot warning signs like aggressive tactics; (3) give directly to verified groups; (4) verify how your donation is spent using IRS Form 990 data; (5) treat unsolicited requests with caution. Also: (6) use credit cards on HTTPS websites; (7) use the watchdog platform to confirm legitimacy; and (8) report any fraud quickly to the FTC, FBI IC3, or your state Attorney General.
What should you look for before donating to a nonprofit?
Confirm IRS 501(c)(3) status via the Tax Exempt Organization Search at apps.irs.gov. Check the program expense ratio — reputable groups direct at least 65 to 75 percent of funds toward programs, not overhead. The BBB's charitable standards program and CharityWatch both publish this benchmark and use it to grade organizations.
Also look for a clear mission statement, published financials, and a physical address. A supporter who asks for these details and gets resistance has found a warning sign worth taking seriously. When you are unsure, choose a different charity that is transparent about its finances.
How do you verify if a charity is legitimate?
Start at apps.irs.gov. If the nonprofit does not appear in the IRS database, it is not a registered organization. Check the watchdog platforms for a star rating and accountability score. Run a Google search pairing the group's name with "scam" or "complaint" to surface warnings.
Confirm your state's charitable registration database lists the group as an active, licensed solicitor. As a final cross-check, use the nonprofit lookup tool at apps.irs.gov and confirm the EIN (Employer Identification Number) matches what the group publishes on its own website — impersonators occasionally register under similar names with different EINs. When in doubt, donate only after verifying these details.
Donate with Confidence: Final Thoughts on Avoiding Charity Scams
These fraud schemes exploit the same generosity that makes communities stronger. The answer is not to stop giving — it is to give with the habits that prevent fraud and help you steer clear of fraud entirely. This guide does not cover every edge case: international giving, donor-advised funds, and corporate matching programs each carry their own nuances. But for the vast majority of individual givers making direct contributions to U.S.-registered nonprofits, these eight steps address the most common failure points.
A quick recap of all eight tips: (1) research nonprofits on watchdog tools; (2) spot red flags like pressure tactics and copycat names; (3) give directly to verified organizations; (4) confirm where your donation goes.
Tips five through eight: (5) treat unsolicited requests with caution; (6) use credit cards on secure websites; (7) consult a watchdog platform before you give; (8) report any fraud scheme to the FTC or your state Attorney General.
Each step takes a few minutes. Together they make fraud harder to commit. A con artist who cannot collect a contribution quickly will move on.
These 8 fraud prevention tips for donors take only a few minutes to apply — and they make donation fraud significantly harder to commit. Share this article before the holidays, when dishonest solicitation activity rises. Bookmark these watchdog platforms for your next altruistic giving decision.