Charity Fraud: How to Check a Nonprofit Before You Donate

Check a nonprofit before donating by confirming its tax-exempt status on the IRS Tax Exempt Organization Search tool, searching its name alongside words like “complaint” or “scam,” and reviewing its spending on a watchdog site like the Better Business Bureau’s Wise Giving Alliance or Charity Navigator. Do this before you give, not after, because once you send cash, a gift card, or a cryptocurrency payment to a fake charity, that money is almost always gone for good.

This guide walks through the warning signs to catch on the phone or online, the free tools that confirm a charity is real, and what to do if you already sent money to one that wasn’t.

Warning Signs to Catch Before You Say Yes

Watch for these signals during the ask itself. According to the Federal Trade Commission, scammers rely on you deciding fast, before you have time to check anything.

Pressure to donate right now. A real charity will still take your donation next week.
A request for cash, a gift card, wire transfer, or cryptocurrency. The FTC warns that anyone who insists on these payment methods for a donation is a scammer, since none of them can be reversed once sent.
A name that sounds like a well-known charity but isn’t quite right. Scammers often pick names that are one or two words off from a trusted organization.
Vague answers about how the money will be used. A legitimate fundraiser can tell you what percentage of your donation goes to the cause versus fundraising costs.
A claim that you already pledged and just need to “complete” the donation. This is a common pressure tactic. Check your own records before you pay anything.
An appeal tied tightly to a current disaster or crisis. The FTC notes that fake charities often spring up overnight after hurricanes, wildfires, and other emergencies to capture a wave of sympathy giving.

Two Free Tools to Verify Any Charity

These are , no-cost lookups. Use both before you donate any meaningful amount.

IRS Tax Exempt Organization Search. This IRS tool lets you confirm whether an organization is currently tax-exempt and eligible to receive tax-deductible donations, and whether it has ever had that status revoked. You can search by the organization’s legal name, a “doing business as” name on file, or its EIN.
State charity registration. Most states require charities and their paid fundraisers to register before soliciting donations. Your state’s charity regulator or attorney general’s office can confirm whether a specific charity or fundraiser is registered to operate in your state.

Charity Verification Checklist

Get the exact legal name. Ask the caller or check the website footer. Don’t rely on a name you heard once on the phone.
Search the IRS Tax Exempt Organization Search. Confirm the organization is currently listed as tax-exempt, not just that it was at some point.
Search the name plus “complaint,” “scam,” or “review.” The FTC recommends this simple search before committing any money.
Check a watchdog rating. Groups like the Better Business Bureau’s Wise Giving Alliance, Charity Navigator, and CharityWatch publish independent reviews of how charities raise and spend money.
Ask what share of your donation reaches the program. If a paid fundraiser can’t or won’t answer, that’s a reason to pause.
Pay by check or credit card, made out to the charity’s full legal name. The FTC recommends this over cash, gift cards, wire transfers, or crypto because it leaves a paper trail and can be disputed if something is wrong.

Decision Path: Should You Donate Right Now?

If the charity isn’t listed as tax-exempt in the IRS search tool — stop. Don’t donate, and don’t assume it’s just a database lag without confirming another way.
If the caller pressures you to decide immediately or pay by gift card, wire, or crypto — stop. Tell them to send information by mail and hang up.
If the name is close to a well-known charity but not an exact match — pause and search the exact legal name plus “scam” before giving.
If it checks out on the IRS tool, has a reasonable watchdog rating, and accepts a check or credit card — you can move forward with reasonable confidence.

Extra Caution After Disasters and During the Holidays

The FTC has repeatedly warned that charity scams spike after high-profile disasters and during year-end giving season, when emotional appeals and urgency are highest. If you want to help after a specific event, consider giving directly to an established relief organization you already know, rather than responding to an unsolicited call, text, or social media post asking for a new or unfamiliar group.

Extra Caution When a Family Member Is Asked to Give

If a parent, relative, or friend mentions a phone or in-person request for a donation, especially one asking for cash, a gift card, or a wire transfer, walk through the same verification steps with them before any money changes hands. A second set of eyes catches pressure tactics that are easy to miss in the moment.

If You Already Donated to a Fake Charity

Stop any further payments or pledges to that organization immediately.
Save every text, email, screenshot, and payment record related to the donation.
If you paid by credit card, contact your card issuer to ask about disputing the charge.
Report the charity scam to the FTC at ReportFraud.ftc.gov.
Report it to your state’s charity regulator or attorney general’s office as well, since they oversee charity registration in your state.

Evidence Limits

This article summarizes general guidance from the Federal Trade Commission’s consumer education site and the IRS. It does not evaluate any specific charity, and being listed as tax-exempt does not guarantee an organization spends donations wisely or exactly as advertised — that’s why pairing the IRS lookup with a watchdog rating matters. Scam tactics change over time, so always check the current guidance on the sites linked below before deciding.

Frequently Asked Questions

Does being tax-exempt mean a charity is trustworthy?

Not entirely. Tax-exempt status confirmed through the IRS search tool tells you the organization is legally recognized and that donations to it may be tax-deductible. It doesn’t tell you how efficiently the charity spends its money, which is why checking a watchdog rating alongside the IRS lookup gives you a fuller picture.

What’s the safest way to pay when I do donate?

According to the FTC, a check or credit card made out to the charity’s full legal name is safer than cash, a gift card, a wire transfer, or cryptocurrency, because those payment methods can be tracked and disputed if something goes wrong.

Is it safe to donate through a crowdfunding page for a cause after a disaster?

Crowdfunding pages aren’t always run by registered charities, so the same verification steps apply: confirm who is actually organizing the page and where the money goes before giving, and be extra cautious with pages that appeared very recently after a specific news event.

Where do I report a charity that turned out to be a scam?

Report it to the FTC at ReportFraud.ftc.gov, and also notify your state’s charity regulator or attorney general’s office, since they handle charity registration and complaints at the state level.

Educational disclaimer: This article is for general education only and is not legal, tax, or financial advice. It does not evaluate or endorse any specific charity. Always verify an organization’s status independently using the tools linked above, or consult a licensed tax or legal professional, before making a donation decision.