Charity Fraud Awareness Week is an international initiative led by the UK-based Fraud Advisory Panel that strives to raise charity fraud awareness. It’s estimated that charitable organizations lose 5% of their revenue each year to fraud.
Robert Malone, IRS Director of Exempt Organizations and Government Entities, emphasized the significance of the week and urged donors to proceed carefully when giving to charities: “We thank the Fraud Advisory Panel for the important work that goes into Charity Fraud Awareness Week and for reminding donors to remain vigilant. Unfortunately, charity scammers look for opportunities to take advantage of situations, such as natural disasters, when exempt organizations are making an effort to help. Donors and charitable organizations alike should remain vigilant to protect their assets from fraudsters. I urge donors to verify a charity’s tax-exempt status at Tax Exempt Organization Search before donating goods, services or money.”
To learn more about how to prevent, detect, and respond to fraud committed against charities and nonprofits, read IRS news release IR-2023-225 or visit the Charity Fraud Awareness Week’s website created specifically by Fraud Advisory Panel to provide free information and resources.
You can also contact your HW&Co. advisor if you have any questions or would like to discuss further.
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