The Indiana
Department of Revenue (DOR) is encouraging Hoosiers to do their due
diligence before donating to any charitable organizations, to ensure not
only that the organization is legitimate but that their contributions go
where intended.
As customers file
their taxes this season, several are unfortunately realizing some of their
charitable giving did not qualify for tax deductions, because the purported
charitable organization never existed.
“When Hoosiers
donate their hard earned dollars to organizations they believe in or causes
they are passionate about, the first step in that process is checking to
ensure their money is going toward the cause they wish to support,” DOR
Commissioner Adam Krupp said. “If you’re not familiar with an organization,
please be sure to perform some quick research before donating.”
Tips for choosing a
reputable charity:
--Check with the
IRS on charity legitimacy. Ask the charity for their Employer Identification
Number (EIN). The EIN can be used in the IRS search tool for tax exempt
organizations to verify their status at irs.gov/charities-non-profits/exempt-organizations-select-check
--Don’t share any
personal or financial information. Keep Social Security numbers, passwords
or financial information, such as credit card numbers private. Scam artists
will use this information to take money or steal the victim’s identity.
--Don’t give or
send cash. Be sure to send a check or use a credit card once the charity has
been verified, and keep that as record of your donation for security and tax
record purposes.
--Consult the IRS
publication on charitable contributions, available at irs.gov/pub/irs-pdf/p526.pdf
--Another common
type of charity fraud that often happens involves scams that occur during or
after a significant natural disaster. Scam artists impersonate charities to
get money or private information from individuals. Beware of any
organization that is not a recognized charity established to help disaster
victims.