Tips on Avoiding Fraudulent Charitable Contribution Schemes

"The National Center for Disaster Fraud reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Unfortunately, criminals can exploit disasters, such as Hurricane Harvey, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions.

Tips should be reported to the National Center for Disaster Fraud at (866) 720-5721. The line is staffed 24 hours a day, seven days a week. Additionally, e-mails can be sent to disaster@leo.gov(link sends e-mail), and information can be faxed to (225) 334-4707.

The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud..."
Fraudulent charitable contributions

Options for Changing the Tax Treatment of Charitable Givin

Statement of Frank J. Sammartino,Assistant Director for Tax Analysis,CONGRESSIONAL BUDGET OFFICE, October 18, 2011.
"Under current law, taxpayers who itemize deductions may deduct the amount they donate to charities from their adjusted gross income (AGI) when determining how much they owe in federal income taxes. That deduction gives people who itemize an incentive to contribute to charities. Like other forms of preferential tax treatment, the deduction also costs the federal government revenues that it might otherwise collect. At current levels of charitable giving, the cost of that deduction—measured as the additional revenues that could be collected if the deduction was eliminated—will total about $230 billion between 2010 and 2014, according to the Joint Committee on Taxation (JCT).."

Tips On Avoiding Fraudulent Charitable Contribution Schemes
Useful tips on internet scams from charitable organizations.

Options for Changing the Tax Treatment of Charitable Giving
"...For this analysis, the Congressional Budget Office (CBO)examined how much taxpayers in various income groups donate to charities and what types of organizations receive those donations. CBO also investigated how changing the structure of tax incentives for giving would affect the tax subsidy (the cost in forgone revenues to the federal government), the overall level of charitable
giving, and the extent to which different income groups benefit from the tax preference. Specifically, CBO looked at 11 options for altering the current income tax treatment of charitable giving, which can be grouped into
4 categories:

 Retaining the current deduction for itemizers but adding a floor.
 Allowing all taxpayers to claim the deduction, with or without a floor.
 Replacing the deduction with a nonrefundable credit for all taxpayers, equal to 25 percent of a taxpayer’s charitable donations, with or without a floor.
 Replacing the deduction with a nonrefundable credit for all taxpayers, equal to 15 percent of a taxpayer’s charitable donations, with or without a floor..."

Tax Issues Relating to Charitable Contributions and Organizations
"The value of tax benefits for charitable contributions and organizations is
estimated to be around $100 billion per year. About half of this cost arises from the
deductions for charitable contributions, and about half from exemptions of earnings
of non-profits.

While revisions to the treatment of charitable contributions and tax-exempt
organizations that receive contributions have been made in the past few years, several issues may be considered in future legislation. Of most immediate concern are the provisions that, as a part of the “extenders,” expired at the end of 2007 and may be considered for extension. Other issues that may arise reflect concerns about donor advised funds and supporting organizations (now under study at the Treasury Department), nonprofit hospitals’ provision of charity care, and educational
institutions’ use of growing endowments. While no current proposals are under
consideration, charitable contribution floors and extensions to non-itemizers were
included in the President’s Advisory Panels’ tax proposals and in the Congressional
Budget Office’s budget options study..."