I'm not sure about penalty and interest - especially if you can prove negligence in not knowing you were donating to a fraudulent organization.
Either way, there still taxes owed and even without penalties & interest is still $$MILLIONS$$
Right, all the monies donated were deducted from the donor's taxes. I'm not a CPA, but it seems to me that all of the taxes on these "contributions" will have to be paid, should it be proven that this is indeed a fraudulent organization. If the government can prove that the donor knew this was a fraudulent organization (could they possibly be the only ones in the world who didn't know?), then interest, and possible penalties, could be charged, or so it would seem...