As your trusted advisors, we believe it is our duty to inform you about a concerning trend that has recently emerged within the nonprofit sector. In the past few weeks, there has been a sudden uptick in nonprofit organizations that have fallen victim to a check-cashing donation scam, and we want to ensure that our clients are armed with the information they need to help them protect themselves from this and any other potential scams.
A large number of nonprofits across multiple states have reported receiving unexpectedly large donations, oftentimes made in memory of a loved one. The donations are received as cashier’s checks, and they appear entirely legitimate. Shortly after, the scammer reaches back out to the nonprofit and claims to have accidentally included more money in the donation than originally intended. They then ask for the donation to be partially refunded. On the surface, this seems like a harmless mistake, but in reality, the cashier’s check is fraudulent, leaving the nonprofit with no way to recover the lost funds sent to the “donor.”
This is a common scam tactic that has been around for decades, affecting many industries and individuals, but the recent uptick in nonprofits reporting these instances is a good reminder to remain vigilant, exercise caution, and be critical of any large, unexpected donations.
We encourage all of our clients to reach out if they are concerned about any unexpected donations. Please remain vigilant, stay informed, and do not hesitate to reach out to your Wegner CPAs advisor if you have any concerns or questions. Your financial well-being is our top priority, and we are here to assist you in navigating potential risks.
