How to vet a charity in 15 minutes, and spot the scams

You don't need to be an accountant to check a charity. In about fifteen minutes you can confirm it's real, see how it's run, and catch most scams before they reach your wallet.

The 15-minute check

1. Confirm the exact legal name. Scammers use names that sound like real charities, a tactic the FTC specifically warns about. Get the name, website and mailing address before anything else.
2. Check IRS status. Search the IRS Tax Exempt Organization Search to see whether the group is recognized as tax-exempt and eligible to receive deductible gifts.
3. Check state registration. Most states require charities and their paid fundraisers to register. The FTC points donors to your state's charity regulator via NASCO.
4. Read a rating or profile. Look the group up on Charity Navigator, GuideStar by Candid, or BBB's Give.org (details below).
5. Skim the latest Form 990. Revenue, program spending, top salaries and governance answers are all in there.
6. Search the name plus "scam" or "complaint." The FTC suggests searching with words like "complaint," "review," "rating," "fraud" or "scam" (FTC).
7. Give through the charity's own website, by credit card or check.

The rating and research sites, compared

A missing rating isn't a red flag by itself. Small and new charities often lack the filing history rating sites need, and churches aren't required to file Form 990 at all (IRS). For those, lean on the IRS check, state registration, and direct questions.

How to read a Form 990 without a finance degree

Most tax-exempt organizations file an annual return. Which version depends on size: groups with gross receipts normally $50,000 or less can file the short 990-N e-Postcard, mid-size groups may file the 990-EZ, and organizations with $200,000 or more in receipts or $500,000 or more in assets file the full Form 990 (IRS). On a full 990, look at:

• Part I summary: revenue and expenses over two years. Wild swings deserve a question.
• Part III, program accomplishments: does what they actually do match the pitch you heard?
• Part VI, governance: an independent board, conflict-of-interest and whistleblower policies.
• Part VII, compensation: top salaries in context of the organization's size.
• Fundraising expenses: are paid outside fundraisers keeping a large cut?

Don't judge by overhead alone

It's tempting to pick the charity with the lowest "overhead," meaning the share spent on administration and fundraising. In 2013 the leaders of BBB Wise Giving Alliance, GuideStar and Charity Navigator signed a joint open letter to donors arguing that overhead is a poor measure of a charity's performance on its own. They urged donors to look at transparency, governance, leadership and results. The letter still allowed that the ratio can help root out fraud and poor financial management.

In practice, a group that underinvests in good staff, data systems or evaluation may look thrifty while doing less good. Very high fundraising costs are worth a question. So is a ratio that looks too perfect. What matters most is evidence that the programs work. For that angle, see effective giving.

Charity scam red flags

• Payment by gift card, wire transfer (Western Union, MoneyGram), cryptocurrency or a payment app only. The FTC says that's a likely scam. Credit card or check is safest.
• "Thank you for your pledge" for a pledge you don't remember making. Stop and verify.
• Pressure to give right now, before you can look anything up.
• A sound-alike name close to a well-known charity.
• Vague, emotional appeals with no specifics on how money will be used.
• A prize promised in return for a donation. The FTC calls that a scam.
• Trusting caller ID. It can be faked. Phone fundraisers also can't call before 8 a.m. or after 9 p.m.
• Links in unexpected texts or emails. Go to the charity's site yourself. If you want to sharpen your instincts, this guide to spotting a scam text before you tap covers the common tells.

Also ask phone solicitors whether they represent a charity or a political action committee. The FTC notes that donations to PACs are not tax deductible.

After a disaster

Scams spike after hurricanes, floods and earthquakes. In an August 2026 alert, the FTC reminded donors not to assume a social media appeal is legitimate just because a friend shared it. It suggested checking the group on CharityWatch or Give.org and being wary of anyone who insists on cash, gift cards, wires or crypto. Favor established organizations already working in the affected area over groups that appeared overnight.

Crowdfunding and social posts

When you give through a crowdfunding page or a social post, the money goes to the organizer, not directly to a charity (FTC). That can be a wonderful way to help someone you know. For strangers, give to people you can verify, or to a registered charity that serves the same need. Gifts to individuals also aren't tax deductible (IRS Topic 506).

If you think you've been scammed

1. Call your card issuer or bank to dispute the charge and stop any recurring payment.
2. Report it to the FTC at ReportFraud.ftc.gov. The agency uses reports to investigate and bring cases.
3. Tell your state charity regulator (find yours through NASCO).
4. Warn the real charity if someone was impersonating it.

Sources

1. Federal Trade Commission — Before giving to a charity
2. Federal Trade Commission — When donating, support those in need, not a scammer (Aug. 2026)
3. IRS — Tax Exempt Organization Search
4. IRS — Form 990 series: which forms do exempt organizations file?
5. IRS — Annual exempt organization return: who must file
6. IRS — Topic no. 506, Charitable contributions
7. Charity Navigator — Ratings methodology
8. GuideStar by Candid
9. BBB Wise Giving Alliance — Standards for Charity Accountability
10. ProPublica — Nonprofit Explorer
11. BBB Wise Giving Alliance, GuideStar, Charity Navigator — The Overhead Myth letter (2013)
12. NASCO — State charity regulators
13. FTC — ReportFraud.ftc.gov