Charity Scams That You Need to Be Aware Of

Charity scams deceive people who believe they are making donations to charities when in fact the money is going to a scammer.

If you are thinking about donating to a charity, please do your research before your kind, and generous heart is taken advantage of. Unfortunately, charitable contributions sometimes do not go to the cause that you intended and believed you were donating to. Charity fraud can include fictitious charities, and tricky business acts against legitimate charities by scammers that are not affiliated with the charity at all.

When you are considering donating to a charity, most times you are thinking about giving money. Another type of donation to avoid being scammed for money is known as gifts-in-kind.

These are noncash donations from individuals and businesses to a charity. For example food, clothing, prescription drugs, and medical supplies.

These type of gifts are directly distributed to those in need, and you have a lesser risk of a charity scam since they are mainly after money.

Enlarge

Charity Scams: Signs to Watch out For

Authentic charities and fundraisers use the phone, face to face interaction, email, and the internet to solicit and obtain donations. Scammers use these same methods to take advantage of your goodwill.

Avoid any charity that:

• Refuses to provide detailed information about its identity mission and how donations will be used.
• Won’t provide proof that a contribution is tax deductible
• Uses a name similar to a well-known, reputable charity
• Uses pressure tactics and deadlines for your donations
• Asks for donations in cash or to wire money
• Offers to send a courier immediately to get a donation. Impressive but very easy to do and very shady.

Enlarge

What you need to do:

• Ask for detailed information about the charity include name address and telephone number
• Get exact name and spelling of the organization.
• Search online.
• Use Social Catfish.

Also, be sure to check with the BBB, Charity Navigator or Charity Watch. Beware that common frauds are fundraisers for vets and military families and calling on behalf of police and firefighters.

Keep a record of donations and never wire money. Do not provide credit or check card number or bank account until you have thoroughly researched and verified the charity. Victims of charity scams file a complaint with the Federal Trade Commission. Complaints help detect patterns of wrong-doing and lead to investigations.

When donating through an online giving portal, be sure you know how your money gets to the charity your supporting and when. Portals are a quick and easy way to donate. However, your donation may not go directly to the charity as you think it is.

It may first go to an organization that accepts donations and issues tax receipts. The intermediary organization charges a service fee then sends the rest of the contribution to charity sometimes taking up to 30 days.

Enlarge

What to look for when paying through a portal:

• Where the money goes
• Fees
• How long the transfer takes

Check where your information goes to see if the website gives your information to anyone else and to whom it is shared with. These details should be clear and easy to find when searching through the fine print.

If the portal does not readily provide the detailed information you are looking for, consider donating elsewhere. Remember you can always go directly to the website of a reputable charity to give.

While donating to a charity is a very admirable gesture, please take the time to use these tips before giving to ensure that your money goes where your heart is.

We encourage you to use Social Catfish’s reverse lookup to investigate charities and prevent being a victim of charity scams. Also, consider our In-Depth Search Specialist service where we assist you if you have been scammed from a fake charity.

Related Articles

Be Wary with Your Donations to the Notre Dame Cathedral

Posted May 2, 2019 by Jen D.

The fire that occurred in the Cathedral of Notre Dame on April 15 and 16, 2019 was devastating to many around the world. Not only were Parisians effected, but also those who had vi… Read More

9 Job Scams You Need to Be Aware Of

Posted September 7, 2018 by Jen D.

With an updated resume and well-written cover letter in hand, you can secure your dream job, unfortunately, the internet is full of job scams. As you review job offers through Link… Read More

Cryptocurrency Scams You Need to Be Aware Of

Posted August 16, 2018 by Jen D.

Scammers are taking advantage of the buzz surrounding digital currency utilizing cryptocurrency scams to trick potential buyers and users. Cryptocurrency is a wild ride in the worl… Read More

6 Back to School Scams You Need to Be Aware Of

Posted August 7, 2018 by Gloria Todisco

Back to school scams range from financial aid scams to bogus retail promotions. Read on to learn more about some of the most common scams. Back to school season is a well known tim… Read More