There’s a great feeling that comes with giving back, and contributing to help others. And with advances in technology over the past few years, giving to your favorite charity, organization, or cause is now easier and more convenient than ever. But technology has also brought a negative side to charitable giving – it can turn your generosity and kindness into an opportunity for fraudsters to take your hard-earned money.
So how can you protect yourself from becoming a victim of charitable fraud? The Federal Trade Commission offers these tips:
Watch for red flags. While fraudsters have become more sophisticated and use a variety of methods to solicit funds by phone, mail, or online, there are some warning signs to look out for. Beware of organizations that –
• Request cash-only donations.
• Fail to provide information on their organization, including their mission and how your donations will be used.
• Cannot provide proof that your donations are tax-deductible.
• Pressure you to make donations.
• Ask you to wire money or express unnecessary immediacy in receiving funds.
Do your homework. Take these simple steps before you dish out any money or provide your credit card number to anyone:
• Get the full legal name of the organization and conduct an Internet search using the company name and words like “scam,” “fraud” or “complaint.”
• Call the charity to verify that the request for donation is legitimate. This will protect you in the event that a fraudster calls you or sends you an email pretending to be from a reputable charity.
• Contact the National Association of State Charity Officials to see if the charity is registered with a state.
• Find out the percentage of your funds that will go to the actual cause or fundraiser.
• Visit the Internal Revenue Service to see if your contributions are tax-deductible. Note there is a difference between an organization being tax-exempt versus offering tax-deductibility on contributions. Tax exempt simply means the organization doesn’t have to pay taxes.
Be a smart giver. Once you’ve verified the organization is legitimate, take these steps to protect yourself:
• Never send cash. It’s much safer and easier report contributions if you pay by check or credit card.
• Keep track of all your donations.
• Set aside a charitable budget to ensure you don’t give away more than you can afford.
Give back by reporting any scams If you think you’ve been a victim of charity fraud, take a moment to file a complaint with the Federal Trade Commission. That simple step will help you give back by ensuring other innocent donors aren’t victimized