--- title: "How to vet a charity in 15 minutes, and spot the scams" url: https://magnanimo.us/how-to-vet-a-charity/ description: "A practical checklist for researching a charity before you donate: rating sites, the IRS search tool, Form 990s, the overhead myth and scam red flags." type: article section: "Giving smart" published: 2026-10-20 updated: 2026-10-20 author: The Magnanimous Editors publisher: Magnanimous (https://magnanimo.us/) --- Giving smart # How to vet a charity in 15 minutes, and spot the scams A 15-minute checklist: confirm IRS status, read the ratings, skim the Form 990, and learn the red flags the FTC says signal a charity scam. Updated October 2026 · 6 min read · 15 linked sources 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. 1.8MIRS-recognized tax-exempt organizations searchable on [GuideStar by Candid](https://www.guidestar.org/) 20accountability standards a charity must meet for BBB accreditation — [BBB Wise Giving Alliance](https://give.org/donor-landing-page/bbb-standards-for-charity-accountability) 0–4★Charity Navigator's star scale, built on a 0–100 score — [Charity Navigator](https://www.charitynavigator.org/about-us/our-methodology/ratings/) Try the free tool [Charity Checker](https://magnanimo.us/charity-checklist/) — tick off each check as you go, flag anything suspicious, and get a readiness score with links to the official lookups. ## 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](https://consumer.ftc.gov/articles/giving-charity). Get the name, website and mailing address before anything else. 2. **Check IRS status.** Search the [IRS Tax Exempt Organization Search](https://www.irs.gov/charities-non-profits/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](https://www.nasconet.org/resources/state-government/). 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](https://consumer.ftc.gov/articles/giving-charity)). 7. **Give through the charity's own website**, by credit card or check. ## The rating and research sites, compared | Tool | What it tells you | Good to know | |---|---|---| | [Charity Navigator](https://www.charitynavigator.org/) | A 0–4 star rating from a 0–100 score across four "beacons": Accountability & Finance, Impact & Measurement, Leadership & Planning, Culture & Compensation | Rates 501(c)(3) public charities; needs three years of Form 990 filings ([methodology](https://www.charitynavigator.org/about-us/our-methodology/ratings/)) | | [GuideStar by Candid](https://www.guidestar.org/) | Profiles of 1.8 million tax-exempt organizations, 990 data, and a Seal of Transparency nonprofits can earn by filling out their profile | A profile, not a grade. The seal shows openness, not effectiveness | | [BBB Wise Giving Alliance (Give.org)](https://give.org/) | Whether a charity meets 20 standards for governance, effectiveness, finances and honest fundraising | Finance standards include spending at least 65% of expenses on programs ([standards](https://give.org/donor-landing-page/bbb-standards-for-charity-accountability)) | | [ProPublica Nonprofit Explorer](https://projects.propublica.org/nonprofits/) | Searchable copies of millions of annual returns, including revenue, expenses and executive pay | Raw documents; you interpret them | | [IRS Tax Exempt Organization Search](https://www.irs.gov/charities-non-profits/tax-exempt-organization-search) | Whether the organization is recognized and eligible for deductible gifts | The official source on status | 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](https://www.irs.gov/charities-non-profits/annual-exempt-organization-return-who-must-file)). 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](https://www.irs.gov/charities-non-profits/form-990-series-which-forms-do-exempt-organizations-file-filing-phase-in)). 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](https://www.charities.org/sites/default/files/OverheadMyth_Letter_July2013.pdf) 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](https://magnanimo.us/effective-giving/). ## Charity scam red flags **Stop if you see these.** Each is drawn from [FTC guidance on giving to charity](https://consumer.ftc.gov/articles/giving-charity). - **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](https://allthingsn.com/blogs/how-to-spot-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](https://consumer.ftc.gov/consumer-alerts/2026/08/when-donating-support-those-need-not-scammer), 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](https://consumer.ftc.gov/articles/giving-charity)). 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](https://www.irs.gov/taxtopics/tc506)). ## 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](https://reportfraud.ftc.gov/). The agency uses reports to investigate and bring cases. 3. **Tell your state charity regulator** (find yours through [NASCO](https://www.nasconet.org/resources/state-government/)). 4. **Warn the real charity** if someone was impersonating it. ## Frequently asked questions **What's the fastest way to check if a charity is legitimate?** Search its exact legal name in the IRS Tax Exempt Organization Search, then look it up on Charity Navigator, GuideStar by Candid or Give.org. Finish by searching the name with "scam" or "complaint." **Is a charity with no rating a bad charity?** Not necessarily. Rating sites need several years of Form 990 filings, so new and small charities are often unrated, and churches don't have to file Form 990. Confirm IRS status and state registration, and ask the group directly about its programs and finances. **What percentage should a charity spend on programs?** BBB Wise Giving Alliance's standard is at least 65% of total expenses on programs. Major watchdogs have also cautioned donors against judging by overhead alone, since results matter more than ratios. **How should I pay a charity safely?** The FTC recommends credit card or check, ideally through the charity's own website. Requests to pay only by gift card, wire transfer, cryptocurrency or payment app are signs of a scam. **Are GoFundMe-style donations tax deductible?** Gifts to individuals aren't deductible. Money given through crowdfunding generally goes to the organizer. Only gifts to qualified organizations can be deducted. ## Sources 1. [Federal Trade Commission — Before giving to a charity](https://consumer.ftc.gov/articles/giving-charity) 2. [Federal Trade Commission — When donating, support those in need, not a scammer (Aug. 2026)](https://consumer.ftc.gov/consumer-alerts/2026/08/when-donating-support-those-need-not-scammer) 3. [IRS — Tax Exempt Organization Search](https://www.irs.gov/charities-non-profits/tax-exempt-organization-search) 4. [IRS — Form 990 series: which forms do exempt organizations file?](https://www.irs.gov/charities-non-profits/form-990-series-which-forms-do-exempt-organizations-file-filing-phase-in) 5. [IRS — Annual exempt organization return: who must file](https://www.irs.gov/charities-non-profits/annual-exempt-organization-return-who-must-file) 6. [IRS — Topic no. 506, Charitable contributions](https://www.irs.gov/taxtopics/tc506) 7. [Charity Navigator — Ratings methodology](https://www.charitynavigator.org/about-us/our-methodology/ratings/) 8. [GuideStar by Candid](https://www.guidestar.org/) 9. [BBB Wise Giving Alliance — Standards for Charity Accountability](https://give.org/donor-landing-page/bbb-standards-for-charity-accountability) 10. [ProPublica — Nonprofit Explorer](https://projects.propublica.org/nonprofits/) 11. [BBB Wise Giving Alliance, GuideStar, Charity Navigator — The Overhead Myth letter (2013)](https://www.charities.org/sites/default/files/OverheadMyth_Letter_July2013.pdf) 12. [NASCO — State charity regulators](https://www.nasconet.org/resources/state-government/) 13. [FTC — ReportFraud.ftc.gov](https://reportfraud.ftc.gov/) ## Keep reading Giving smart ### [How much Americans give: charitable giving statistics for 2025](https://magnanimo.us/charitable-giving-statistics/) The latest Giving USA numbers, explained: $617.2 billion given in 2025, who gave it, where it went, and the shrinking donor base behind it. 5 min read Giving smart ### [Effective giving: doing the most good with what you give](https://magnanimo.us/effective-giving/) Some charities do far more per dollar than others. How evaluators like GiveWell measure that, what pledges ask, and where the approach has limits. 5 min read Giving smart ### [GivingTuesday: what it is, when it is, and how to make it count](https://magnanimo.us/giving-tuesday/) The global day of generosity lands on December 1, 2026. Here's where it came from, what 2025 raised, and how to give without getting scammed. 5 min read [All giving smart guides →](https://magnanimo.us/giving-smart/) ## From Today's Kindness October 22 · Food & community ### [Food drive season is here. Here's what pantries actually need most](https://magnanimo.us/daily/2026-10-22-food-drive-most-needed/) Canned protein, peanut butter and low-sodium staples top the lists. Glass jars and bake-sale leftovers don't. And cash quietly beats them all. Today's act Look up your local food bank's most-wanted list, then give either three items from it or the $5 you'd have spent on them.