BBB Shares Smart Holiday Giving Tips as New Anti-Fraud Protections Roll Out in Texas

With Texans preparing to support charitable causes during the holiday season and end-of-year giving period, Better Business Bureau serving the Heart of Texas reminds donors to take extra steps to avoid fraudulent solicitations, especially as new state protections aimed at reducing disaster-related charity scams take effect this month.

House Bill 20, also known as the Disaster Scam Response Act, became effective on December 4. The law establishes a voluntary accreditation and state registry for disaster-relief nonprofits, administered by the Office of the Attorney General (OAG).

“Holiday giving is one of the most generous times of the year, and Texans consistently step up to support their neighbors,” said Jason Meza, BBB’s senior director of media relations & community engagement. “But this season also attracts scammers who take advantage of emotions, disasters, and urgency. We are pleased with the new legislation and ready to work alongside state partners to ensure safer giving.”

There are immediate steps donors can take to protect themselves during one of the highest volume giving periods of the year.

Tips for smart and secure year-end giving

• Decide how much to give: Review your charitable giving for the 2024 calendar year and determine if you want to make any additional gifts before December 31st.

• Avoid charity fraud: Con artists can sometimes strike when donors are rushed to contribute. Review our previous fraud awareness tips that include cautions about emails and social media messages that include links to make donations. It is safest to go to the charity’s website directly and donate there.

• Confirm tax-exempt status and state registration: Verify an organization’s charitable tax-exempt status by visiting this IRS link (or the Tax Status tab of the charity’s Give.org report). Also, about 40 of the 50 states require charities to register with the Attorney’s General Office or Secretary of State’s office. Keep in mind that the tax status or state registration does not mean either the IRS or state government agencies recommend or endorse a charity.

• Check Give.org: With a click, visit the Give.org website to verify if your selected charity meets the BBB Charity Standards. On our charity search page you can find national and local charities and filter by state, cause area and accreditation status. You can also scroll through the full A-Z list of nationally soliciting charities. Not sure what charity to donate to? Visit AskGive.org, an interactive AI tool that can help you find trusted charities working on the causes you care about.

• Donate appreciated assets: Consider giving appreciated assets like stocks or cryptocurrency instead of cash. Check with your tax advisor about potential tax advantages. To donate appreciated assets, contact the charity or visit their donation page: some charities, like BBB Wise Giving Alliance, accept stock and crypto donations directly on their website.

• Postmark or donate online by December 31^st: If you are mailing a hard copy check, it must be mailed to the charity and postmarked by December 31^st to be eligible for a deduction for 2024. You might consider going to the Post Office and using a USPS priority envelope and keeping the receipt as evidence of when you mailed the gift. If you give online, make sure you get a dated receipt of your contribution for your records so you can confirm the donation was made before January 1^st.

• To get a deduction, itemize: Only taxpayers that itemize their deductions on their federal tax return will be able to get a charitable deduction. This will take place on Schedule A of IRS Form 1040. The limit on charitable cash donations is 60% of the taxpayer’s adjusted gross income. For more details, see IRS Publication 526. Please note the 2024 version of this publication is not yet available.