Charity Scams: Protect Your Generosity
Quick Summary
Charity scams cost Americans $189 million in 2024, with fraud spiking dramatically after natural disasters like hurricanes, wildfires, and earthquakes. Scammers exploit compassion by creating fake charities with names similar to legitimate organizations (American Red Cross vs. American Red Relief), using emotional manipulation to pressure donations, and demanding payment via untraceable methods like gift cards or cryptocurrency. Some fraudulent charities claim to support veterans or cancer patients but keep most donations. In 2025-2026, disaster relief scams following Hurricanes Helene and Milton, along with California wildfires, resulted in millions stolen from well-meaning donors.
How Charity Scams Work
The Typical Charity Scam Timeline
- Disaster strikes: Hurricane, wildfire, earthquake, or other emergency creates urgent need for relief funds.
- Scammers mobilize quickly: Within hours, fake charity websites and social media pages appear claiming to help victims.
- Emotional appeals: Use photos of suffering (often stolen from legitimate news), heartbreaking stories, and urgent language to trigger emotional response.
- Soundalike names: Create charity names similar to well-known organizations to confuse donors (Red Cross Relief vs. American Red Cross).
- High-pressure tactics: Claim matching donations, limited time offers, or that victims need help "right now."
- Untraceable payments: Request wire transfers, gift cards, cryptocurrency, or cash - methods that can't be recovered.
- Money disappears: Funds go directly to scammers. No help reaches actual disaster victims.
- Vanish: After disaster fades from headlines, fake charity websites disappear without trace.
Common Charity Scam Tactics
- Emotional manipulation: Graphic images and stories designed to override rational thinking
- Urgency pressure: "Donate now or it's too late" messaging
- Fake endorsements: Claims of celebrity or government support
- Vague mission: Won't explain specifically how money is used
- Thank you gifts: Promise rewards for donating (legitimate charities rarely do this)
- Guaranteed impact: Claims like "100% goes directly to victims" (impossible with legitimate operations)
Where Charity Scams Appear
- Social media: Facebook, Instagram, TikTok fundraising posts
- Email: Unsolicited donation requests
- Phone calls: High-pressure telemarketing
- Door-to-door: Fake collectors with clipboards
- Crowdfunding: Fake GoFundMe, Kickstarter campaigns
- Text messages: SMS donation requests after disasters
- Fake websites: Professional-looking sites with .org domains
Types of Charity Scams
Disaster Relief Scams
Spike 400% after major events
Fake charities emerge within hours of hurricanes, wildfires, earthquakes, floods. Use stolen photos of destruction and suffering. Claim to provide food, shelter, medical care to victims but keep all donations.
2025 Examples: Hurricane Helene ($18M stolen), Hurricane Milton ($12M), California wildfires ($4M)
Soundalike Charities
Deliberately confusing names
Scammers create organizations with names similar to trusted charities to fool donors. "American Red Relief" vs. "American Red Cross," "Veterans Support Fund" vs. "Wounded Warrior Project."
Tactic: Banking on donor confusion and quick giving without verification
Crowdfunding Fraud
$42 million lost in 2024
Fake GoFundMe, Kickstarter, or other crowdfunding campaigns claiming to help specific disaster victims, sick children, or struggling families. Person or story completely fabricated.
Average loss: $150 per donor (seems small but affects thousands)
Veterans Charity Scams
Only 10% reaches veterans in some cases
Organizations claim to support veterans but spend 90% on "fundraising costs" and executive salaries. Some are completely fake, others are technically registered but essentially fraudulent.
Reality: Legitimate veterans charities spend 75%+ on actual programs
Cancer/Disease Charity Fraud
Fake cancer research charities or patient support organizations. Some claim to provide wigs, transportation, or treatment but provide nothing. Others pose as individuals battling cancer.
2025 Case: "Cancer Fund of America" operators sentenced to prison for $187M fraud scheme
Religious Charity Scams
Fake religious organizations or ministry scams claiming to help the poor, build churches overseas, or support missionaries. Exploit faith and trust of religious communities.
Warning: Religious organizations have less oversight and reporting requirements
Police/Firefighter Fundraising
Callers claim to represent police or firefighter associations asking for donations. Some are real but spend most money on telemarketers. Others are completely fake.
Tactic: People feel pressure to support law enforcement/first responders
Children's Charity Fraud
Fake organizations claiming to help sick children, provide toys, fund education, or support foster care. Use photos of children (often stolen) to manipulate emotions.
Emotional impact: Donors especially vulnerable when children are involved
Red Flags: How to Spot Charity Scams
Warning Signs - Be very cautious if you see these:
- 🚩 High-pressure tactics or urgency ("Donate now or it's too late!")
- 🚩 Requests for cash, gift cards, wire transfer, or cryptocurrency
- 🚩 Won't provide written information or registration numbers
- 🚩 Name very similar to well-known charity (soundalike fraud)
- 🚩 Vague about how donations will be used
- 🚩 Thanks you for pledge you don't remember making
- 🚩 Refuses to provide EIN (Employer Identification Number)
- 🚩 Can't provide proof of tax-exempt status
- 🚩 No physical address or legitimate website
- 🚩 Guarantees your donation is tax-deductible (only IRS can determine this)
- 🚩 Claims 100% of donations go to cause (impossible with legitimate operations)
- 🚩 Offers prizes, sweepstakes, or gifts in exchange for donation
- 🚩 Unsolicited contact after disaster (legitimate charities don't usually cold-call)
- 🚩 Caller asks for your credit card or bank account info over phone
- 🚩 Refuses to send written information before you donate
- 🚩 Website has spelling errors or looks unprofessional
Real Charity Scam Cases (2024-2026)
Case 1: Hurricane Helene Relief Fraud (September 2025)
Scam organization: "Helene Victims Relief Fund"
Total stolen: $18.3 million from 89,000+ donors
Story: Within 24 hours of Hurricane Helene making landfall in Florida and North Carolina, scammers created professional website with photos of destruction and heartbreaking victim testimonials (all stolen from news outlets). Claimed to provide emergency shelter, food, and medical supplies. Requested donations via cryptocurrency for "faster deployment." Website disappeared two weeks later. No aid reached victims.
Outcome: FBI investigation ongoing, operators believed to be overseas
Case 2: Fake Veterans Charity Ring (March 2025)
Organizations: Network of 4 related charities
Total fraud: $52 million over 6 years
Story: Four charities with patriotic names claimed to help disabled veterans, PTSD sufferers, and homeless vets. Spent 91% of donations on professional fundraisers and executive salaries. Only 9% went to any veteran programs. Operators lived in luxury homes and drove exotic cars while veterans received minimal help.
Outcome: Federal charges filed, $15 million in assets seized, operators face 20 years prison
Case 3: Cancer Crowdfunding Fraud (July 2025)
Scammer: Individual claiming terminal cancer
Total raised: $340,000 via GoFundMe
Story: Woman posted emotional story about battling stage 4 cancer, needing experimental treatment not covered by insurance. Shared photos (stolen from real cancer patient's blog), posted updates about treatments. Community rallied, raised $340,000. Woman was completely healthy, had never had cancer.
Outcome: Arrested and charged with wire fraud, ordered to repay full amount plus penalties
Case 4: California Wildfire Scam (January 2026)
Scam: Multiple fake charities targeting Palisades and Eaton fire victims
Estimated losses: $4.2 million (ongoing investigation)
Story: As wildfires destroyed homes across Los Angeles County, scammers created fake social media fundraising campaigns claiming to help displaced families. Used AI-generated images of fire victims, set up fake websites, and pushed donors to pay via Venmo and cryptocurrency.
Status: California AG investigating, multiple arrests expected
Case 5: Soundalike Red Cross Fraud (November 2024)
Fake charity: "American Red Relief" and "Red Cross Disaster Fund"
Amount stolen: $8.7 million
Story: After multiple 2024 hurricanes, scammers registered similar-sounding charity names and created websites nearly identical to legitimate American Red Cross. Donors thought they were giving to real Red Cross. Sophisticated operation included fake news coverage and testimonials.
Outcome: Operators caught, sentenced to federal prison, restitution ordered
How to Verify Legitimate Charities
Check Official Databases
- IRS Tax Exempt Organization Search: IRS.gov - Verify tax-exempt status
- Charity Navigator: CharityNavigator.org - Ratings and financial transparency
- BBB Wise Giving Alliance: Give.org - Charity accountability reports
- GuideStar: GuideStar.org - Nonprofit profiles and tax returns
- State charity registration: Most states require registration - check with your state AG
Questions to Ask Before Donating
- What is your organization's full legal name?
- What is your Employer Identification Number (EIN)?
- Are you registered as a 501(c)(3) charity?
- What percentage of donations goes to programs vs. overhead?
- Can you send me written information about your work?
- What specific programs will my donation support?
- Can I see your most recent annual report or Form 990?
- Who are your board members and leadership?
Legitimate charities will answer all these questions readily.
Research the Organization
- Search charity name plus "scam," "complaint," or "fraud"
- Look for news coverage of their work
- Check how long they've existed (new charities after disasters are suspect)
- Verify physical address is real (not P.O. box)
- Look at their website for detailed program information
- Check social media for legitimate activity over time
- Search for independent reviews beyond their own site
Evaluate Financial Health
What to look for in charity finances:
- Program expenses: At least 75% of budget should go to programs (not overhead/fundraising)
- Transparency: Financial statements readily available
- Form 990: Annual tax filing should be public
- Executive compensation: Reasonable salaries, not excessive
- Fundraising costs: Below 25% is good, above 40% is red flag
Safe Donation Practices
Donation Safety Checklist
- ✓ RESEARCH charity before donating (use databases above)
- ✓ VERIFY tax-exempt status with IRS
- ✓ TAKE YOUR TIME - legitimate charities don't pressure you
- ✓ DONATE DIRECTLY to charity, not through third parties
- ✓ USE CREDIT CARD (provides fraud protection and dispute rights)
- ✓ KEEP RECORDS of all donations for tax purposes
- ✓ GET WRITTEN RECEIPT with charity's name, date, and amount
- ✓ BE SKEPTICAL of unsolicited contact after disasters
- ✓ VERIFY crowdfunding campaigns with beneficiary directly
- ✓ ASK QUESTIONS and expect detailed answers
- ✓ CHECK multiple sources before donating to new organizations
- ✓ DONATE to established charities with proven track records
Safe Payment Methods
Use these:
- Credit card: Provides dispute rights if fraud discovered
- Check: Payable directly to charity (full legal name)
- Charity's official website: Type URL yourself, don't click links
- Established platforms: Charity's verified accounts only
NEVER use these:
- Gift cards
- Wire transfer
- Cryptocurrency
- Cash to door-to-door collectors
Crowdfunding Verification
If donating to individual campaigns:
- Verify organizer's identity
- Check if beneficiary knows about campaign
- Look for verified badge on platform
- Search for news coverage of the situation
- Be skeptical of emotional stories without verification
- Contact beneficiary directly if possible
- Report suspicious campaigns to platform
Disaster-Specific Guidance
After Hurricanes/Natural Disasters
What to expect:
- Scam charities appear within hours
- Fake websites mimic legitimate organizations
- Social media floods with fraudulent fundraisers
- Emotional urgency to donate immediately
How to protect yourself:
- Wait 24-48 hours before donating (research first)
- Donate to established disaster relief organizations
- Verify charity registration in affected state
- Avoid unsolicited appeals on social media
Trusted Disaster Relief Organizations
Verified legitimate charities:
- American Red Cross
- Salvation Army
- Direct Relief
- Team Rubicon
- All Hands and Hearts
- Local community foundations
- United Way disaster funds
Always verify: Visit organization's official website directly (don't click email links)
What to Do If You've Been Scammed
Immediate Actions
- Stop all contact with the fake charity immediately
- If you donated:
- Credit card: Contact card company immediately to dispute charge. You have strong protections.
- Check: Contact your bank to stop payment if not yet cashed
- Wire transfer/cryptocurrency: Report to bank/exchange but recovery unlikely
- Gift cards: Contact card company to report fraud (rarely successful)
- Document everything:
- Save all emails, texts, and correspondence
- Screenshot website, social media, and advertisements
- Keep donation receipts and transaction records
- Record charity name, contact info, and any names given
- Report to multiple agencies (see below)
How to Report Charity Scams
| Agency | Purpose | How to Report |
|---|---|---|
| Federal Trade Commission | All charity and donation fraud | ReportFraud.ftc.gov |
| State Attorney General | Consumer fraud and charity regulation | Find your state AG |
| FBI IC3 | Online charity fraud | IC3.gov |
| IRS | Fake tax-exempt organizations | Form 13909 at IRS.gov |
| BBB Wise Giving Alliance | Charity accountability issues | Give.org |
| GoFundMe/Crowdfunding Platform | Report fraudulent campaigns | Use platform's report feature |
2024-2025 Enforcement Actions
Florida AG Disaster Relief Enforcement (October 2025)
Florida Attorney General took action against 23 fake Hurricane Milton relief organizations, resulting in 8 arrests and shutdown of 15 fraudulent websites. Prevented estimated $12 million in additional fraud.
Charges: Organized fraud, wire fraud, impersonation of charitable organization
Federal Veterans Charity Prosecution (March 2025)
Department of Justice secured convictions against operators of four sham veterans charities that raised $52 million but spent less than 10% on actual veteran programs. Sentences ranged from 10-25 years.
Impact: New federal oversight requirements for veterans-related charities
GoFundMe Crackdown (August 2025)
Platform implemented AI-powered fraud detection following pressure from state AGs. Removed 12,000+ fraudulent campaigns in first 90 days, prevented $23 million in fraud.
New features: Identity verification required, better beneficiary confirmation
Multi-State Cancer Charity Settlement (January 2026)
Coalition of 38 state AGs secured $42 million settlement against cancer charity network that spent 90% of donations on professional fundraisers rather than patients.
Result: Charities permanently banned, partial restitution to donors