Charity Scams

Specific tips you need to know to protect yourself from charity scams: Internet ScamBusters #97

NEW: Beware of Haiti Earthquake Scams

Today’s issue is on charity scams. Since it’s getting towards the end of the year

and many people do their charitable contributions at this time of year, we thought

it would be especially useful to help you avoid falling for a charity scam now.

Let’s get right to it…


Charity Scams


Fortunately, many people like to give with an open heart to help others in need.

Unfortunately, that means we’ve created a climate that’s ripe for fake charity

scams and scam artists. They know they can tug at our heartstrings — and rake

in the cash.

Fake charity scams often set up quasi-legitimate agencies so that, at first glance,

they look real; they may also name themselves something similar to other legitimate

charities.

They may even carry ‘ID’ in the name of the charity, complete with a logo.

These scam artists use all of the standard methods to collect ‘donations’ for

their charity scams — tables at the local mall, going door-to-door, email, and

telemarketing.

All this makes charity scams harder to spot. However, here are 10 tips to help

spot charity scams:

  1. BE WARY of every opportunity that presents itself — especially when it presents

    itself in the wake of some big disaster that gets lots of media attention.

  2. Ask for the name, address, and phone number of the charity — and whether or

    not it is registered. If the presenters claim that it is registered, get a registration

    number. The Better Business Bureau Wise Giving Alliance offers information about

    national charities; you can call 703-276-0100 or go to their website:

    ==> http://www.give.org

    If you’re trying to figure out whether or not some particular charity is worthy

    of support, check out this section of the site:

    ==> http://www.give.org/reports/index.asp

    They publish their standards for rating charities, and then rate over 600 different

    charities using these standards.

  3. Verify with the office of the charity that there is indeed a campaign going

    on, or that they’ve authorized the charity drive that you’re being invited to

    contribute to.

  4. Don’t ever donate cash if you can help it. Write a check to the charity –

    not to the person standing in front of you. This also helps you document the donation

    for your records and for your tax return. And don’t give out bank information!

  5. Ask what percentage of your donation goes directly to the cause. Legitimate

    charities will have ready answers because they are used to the question. :-)

  6. Get a receipt with the name of the charity on it.

  7. Be especially cautious about getting a charity donation request by email. Most

    legitimate charities don’t use email for their solicitations. (Some legitimate

    charities will email people who have donated before — but never respond to requests

    where you’ve never donated.)

  8. Be especially wary about charities that claim to be raising funds for the local

    police or firefighters. Check with them first!

  9. Don’t give in to pressure or ‘guilt trips’ about ‘suggested donations’ or ‘requested

    minimum contributions.’ Once you’ve determined that the charity is legitimate

    and you’ve decided you want to contribute, simply give what you can and want to

    give — it will be appreciated.

  10. The best way we know of to avoid charity scams is to decide IN ADVANCE (while

    you’re doing your annual or monthly budget) which charities you’ll support and

    CONTACT THEM. Then you can gracefully turn anyone else down who comes your way

    with hat in hand.

For more tips on avoiding charities

and charity scams, click here.

It’s great to be a giver — but give cautiously so you’re not enriching scammers

or a questionable ‘charity.’

~~~

Time to close. See you next week.