Charity scams: How to spot fraudulent charities and protect your donations

Practical steps for donors and nonprofit organizations to help safeguard charitable giving from fraud and financial crime.

Key takeaways

• Fraud is evolving. Charity scams continue to evolve, especially after natural disasters, humanitarian crises and high-profile news events, making verification more important than ever.
• Transparency is key. Legitimate charities are transparent about their mission, finances, leadership and the impact of donor contributions.
• Spot the scam. Common warning signs include pressure to donate immediately, vague program details, requests for cryptocurrency or gift card payments and charity names that closely resemble established organizations.
• Research and verify. Before donating, research the organization through independent sources and verify its tax-exempt status.
• Nonprofit risk. Nonprofits face multiple fraud risks, including phishing attacks, business email compromise, ransomware, invoice fraud and internal misuse of funds.
• Risk management. Strong internal controls, cybersecurity practices and employee awareness training can help organizations reduce fraud exposure.
• Due diligence. A few extra minutes of due diligence can help ensure charitable dollars reach the people, programs and causes they are intended to support.

Americans have a long tradition of helping others in times of need. Charitable donations reached a record high of $617.2 billion for the 2025 calendar year according to the Giving USA 2026 Report via Give.org. That’s something worth celebrating. But before you open your wallet, make sure your charitable donation is going to a worthy and verifiable cause.

Whether you’re supporting disaster relief, education, healthcare or community programs, taking a few minutes to verify a charity can help ensure your generosity reaches its intended purpose. That’s because charity fraud is big business. A charity scam is a fraudulent scheme that impersonates or misrepresents a nonprofit organization to obtain donations, personal information or financial account details.

The FBI’s Internet Crime Complaint Center (IC3) reported receiving more than 4,500 complaints in 2024 involving fraudulent charities, crowdfunding accounts and disaster-relief campaigns, totaling approximately $96 million in losses.

“Scammers prey on generosity,” said Kimberly Reece, customer advocacy manager for Enterprise Fraud Management at Regions. “They see kind hearts as easy targets. Always verify before you give, because real charities earn trust while scammers exploit it.”

Before you donate, consider using verifying resources such as the IRS Tax Exempt Organization Search, Charity Navigator, Candid (GuideStar), Better Business Bureau Wise Giving Alliance or your state’s charity regulator.

The Internal Revenue Services (IRS) reminds taxpayers to keep an eye out for common charitable contributions scams. The following is a list of potential warning signs that a charity may not be what it seems.

10 potential red flags of a charity scam

1. “Give now!” Urgency is one of the first warning signs. Scammers insist help is needed immediately, while legitimate charities want donors to have time to make an informed decision.

2. Vague goals. Fraudsters often promote a fundraising effort without explaining exactly where the money goes. Reputable charities are transparent about their mission, programs and financial impact.

3. A name that sounds familiar. Scammers frequently create names that resemble those of well-known charities. They’re counting on donors to miss the subtle differences.

4. Unsolicited requests. Legitimate charities use phone campaigns to solicit support, but so do scammers. Never feel pressured to commit on the spot. Request information, then research the organization online. Search the charity’s name alongside words like “scam,” “fraud” or “complaints.”

5. Unusual payment methods. Most charitable donations are made by check or credit card. Be cautious if someone requests cash, gift cards, wire transfers, payment apps or cryptocurrency.

6. Heavy emotion, light on facts. Scammers often rely on heartbreaking stories and compelling images while offering few details about programs, outcomes or how donations will be used.

7. Pop-up disaster charities. Fraudulent organizations often emerge after hurricanes, floods, wildfires and other disasters, hoping to capitalize on public generosity.

8. Questionable tax-deduction claims. Legitimate charities can easily verify their tax-exempt status. If someone hesitates or refuses to provide documentation, consider it a warning sign.

9. Requests for excessive personal information. Scammers may ask for banking details, account information or other sensitive data that has nothing to do with processing a donation.

10. “Thank you for your previous donation.” Some fraudsters claim you’ve donated before and ask you to contribute again. They’re hoping you’ll be too embarrassed to admit you don’t remember making the original donation. Trust your instincts.

“These scams hurt the philanthropies we genuinely want to support,” Reece said. “Not only do they take resources away from charities that make a difference in our communities, they also fund criminal enterprises that harm the very people donors are trying to help.”

How nonprofits can protect against charity fraud

Legitimate charities depend on donor contributions to serve their communities. Increasingly, however, they must defend themselves against scams that siphon resources and damage public trust.

While external threats are common, some of the greatest risks stem from weaknesses inside an organization.

“Nonprofits are often understaffed, with a small number of people handling multiple responsibilities,” said Hunt Prothro, Regions’ Fraud Prevention manager. “That can create vulnerabilities, from weak controls to the misuse of funds.”

1. Cybercrime threats

Nonprofits maintain valuable donor databases containing personal and financial information. Criminals use phishing emails and other cyberattacks to gain access to that data.

2. Business email compromise

In these schemes, criminals impersonate nonprofit executives, board members or vendors to redirect funds or create urgent payment requests. Fraud can be difficult to detect without appropriate controls and verification procedures.

3. Mismanagement and misuse of funds

Internal fraud can involve embezzlement, unauthorized spending or the misuse of charitable assets. The result is often financial loss and reputational damage.

4. Charity impersonation and fake fundraising

Criminals create fake websites, fundraising pages and social-media accounts that mimic legitimate organizations, particularly after natural disasters or major news events.

5. Invoice fraud

Fraudsters may submit fake invoices, inflate charges or substitute lower-quality products and services, hoping weak internal controls will allow the scheme to go unnoticed.

6. Ransomware attacks

Hackers can lock organizations out of their systems and demand payment to restore access. Nonprofits are often targeted because they typically have fewer cybersecurity resources than larger organizations. A strong defense includes cybersecurity controls, employee training and a tested response and recovery plan before an attack occurs.

“Criminals try to exploit what nonprofits are known for: trust,” Prothro added. “Whether they’re after data or money, scammers often view charitable organizations as understaffed and less equipped to defend themselves.”

Nonprofit fraud prevention checklist

• Separate payment approval and payment processing duties.
• Verify changes to vendor payment instructions.
• Require multifactor authentication.
• Conduct employee cybersecurity training.
• Review financial activity regularly.
• Maintain an incident response plan.

How donors can give safely and avoid charity scams

“Generosity is one of the strongest forces for good in our communities,” shares Steven Sommers, Philanthropic Solutions Area Manager. “Every day, donors give with the sincere hope of improving lives, and nonprofits work tirelessly to turn those gifts into meaningful impact. Unfortunately, fraud threatens that shared mission by diverting resources away from worthy causes and undermining public trust. The good news is that a little diligence can go a long way.”

Sommers advises that before making a donation or accepting a contribution, take the time to verify, ask questions and follow sound safeguards. By remaining vigilant, donors and nonprofits can work together to ensure charitable dollars reach the people and programs they are intended to support, strengthening the communities we all want to help.

For families with significant philanthropic goals, due diligence should extend beyond annual donations. Donors may wish to evaluate governance practices, financial stewardship and organizational impact before making larger gifts, establishing donor-advised funds or creating long-term charitable strategies.