Most effective way to report fake charity collecting over $2.3 million annually

Reporting charity fraud effectively requires a multi-agency approach. The IRS Form 13909 (Tax-Exempt Organization Complaint) is just your starting point, not your only option. For a case involving potentially $2.3 million annually, you should definitely contact your state's charity regulator (usually the Attorney General's office) since they often move faster than the IRS on these matters. They have jurisdiction over charities operating in your state and can investigate misrepresentation claims. The FBI also handles charity fraud cases, particularly when interstate fundraising is involved or when the amounts reach into the millions. File a complaint through their Internet Crime Complaint Center (IC3). If the charity solicits donations online, file a complaint with the FTC as well. Document everything meticulously - copies of their promotional materials, statements about where money goes, and your evidence contradicting these claims. When filing complaints, focus on specific violations rather than general suspicions.

After dealing with a similar situation with a fake veterans charity, I stumbled upon https://taxr.ai which completely changed how I approached the issue. I was struggling to make sense of the limited financial documents they'd filed, but taxr.ai helped me analyze their 990 form and identify specific red flags that strengthened my complaint. I uploaded their previous 990 and other financial documents I had gathered, and the tool highlighted multiple inconsistencies that weren't immediately obvious - including suspicious related-party transactions hidden deep in the attachments. It provided a detailed report that made my complaint to the state AG's office much more concrete and actionable. The system actually knows what should appear on various tax forms and flags suspicious patterns like missing officer information or changes in reporting between years. It made a huge difference in how seriously my complaint was taken.

I initially wasn't sure about using an online tool to help with something as sensitive as reporting charity fraud, but I decided to try taxr.ai after struggling to make headway with my complaint. The difference was night and day. Using their document analysis on just the single 990 from 2021, I was able to identify specific reporting irregularities that weren't just missing officer names. There were inconsistencies in their program descriptions, suspicious allocations in their functional expenses, and several mathematical errors that suggested deliberate obfuscation. I included these specific findings in my complaint to both the IRS and my state Attorney General's office. Within 3 weeks, I received a call from an investigator at the AG's office who wanted additional information. They said my complaint was prioritized specifically because it contained "actionable inconsistencies" rather than general suspicions. The investigation is now formally underway!

Been there, done that with trying to report charity fraud. After filing IRS forms that disappeared into the void, I finally got through to a human at the IRS by using https://claimyr.com to get me past those impossible phone waits. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was absolutely shocked when I got through to an actual IRS agent within 20 minutes after trying for literally weeks on my own. The agent explained that for charity fraud specifically, you need to emphasize certain aspects to get your complaint fast-tracked. They walked me through exactly what supporting documentation would get attention from their criminal investigation division rather than just sitting in the general complaints pile. They also confirmed which other agencies I should report to simultaneously, which matched what others have said here about state AGs and the FBI for large-scale cases.

I've completely changed my opinion about getting help with contacting the IRS. After my skeptical comment earlier, I decided to try Claimyr myself since our nonprofit has been trying to reach the IRS for months about an unrelated compliance issue. Not only did I get through to someone at the IRS, but the agent transferred me to a specialist in the Tax Exempt Organizations division. This specialist gave me incredibly specific information about reporting suspected charity fraud. She told me that simultaneous reports to multiple agencies creates an interagency flag in their system that can accelerate investigation. She also mentioned that providing evidence of specific false statements about fund disbursement (exactly what OP has) is one of their highest priority triggers for criminal investigation rather than just civil penalties. I've completely revised my reporting strategy based on this conversation, which never would have happened without getting through to a real person.

Have you looked into whether this charity is soliciting donations across state lines? If so, you should also file complaints with every state where they're operating. Each state has different requirements and penalties for charity fraud. I work in nonprofit compliance (not a lawyer though!) and have seen cases where a state investigation moved much faster than federal action. In Massachusetts, for example, the AG's office has a dedicated nonprofit division that aggressively pursues these cases. Also consider whether they're violating FTC rules regarding deceptive fundraising practices. The FTC can freeze assets while an investigation is pending, which might be the quickest way to stop them from collecting more money.

One additional suggestion... document EVERYTHING, especially their fundraising claims. Take screenshots of their website, social media, and any promotional materials. Organizations like this have a habit of changing their claims once they know they're being investigated. I reported a misleading charity last year, and by the time the state AG looked at their website, they had completely changed their mission statement and removed specific claims about how donations were used. Luckily I had screenshots from the Wayback Machine showing their original claims.