Be Generous - But Beware of Digital Giving

As with so many other aspects of life, charitable giving has gone digital, with online solicitations that appeal to your emotions and make donating easier. Be wary, not all donated funds are going to the advertised organization but instead to a larger crime syndicate.

What is Charity Fraud?

Charity fraud, also known as a donation scam, is the act of using deception to obtain money from people who believe they are donating to a charity. Often, individuals or groups will present false information claiming to be a charity or associated with one, and then ask potential donors for contributions to this non-existent charity. These deceitful acts by businesses may involve accepting donations without using the funds for their intended purposes or soliciting funds under false pretenses of need.

Charity fraud can happen in person, via email, text messages, social media post, phone calls, websites and even mail.

Warning signs of Charity Fraud:

• Cash, Wire, or Gift Card Donations -  Were you asked to donate only in cash, to wire money, or send gift cards?  Then the person is probably a scammer.  Once you send cash or gift cards, you can’t track it or get it back.  Always donate by check or credit card.
• Requests for Personal or Financial Information -  Never provide your personal information (bank account number, Social Security number, etc.) to strangers.  They may use this information to steal your identity.
• Donation Is Not Tax Deductible -  If a group can’t give you proof (usually a receipt or letter) that your donation is tax deductible, it may be a scam.  But remember, when you give money to crowdfunding sites the gift isn’t usually something you can list as a tax deduction because the recipient is not a registered charity.
• Fake Information -  Often scammers will imitate the name, phone number, web page, or materials of a real charity.  Never trust contact information that a caller gives you directly.  Always do your own research to locate this information.  Most charity web addresses end with .org and not .com.  Avoid web addresses that end in a series of numbers.  Never enter your personal information, such as date of birth or bank account information, on any website unless you’ve done your own research to make sure the website is legitimate.
• Pressure Tactics -  Scammers may pressure you to give right away.  Ask the organization to send you materials first.  Always take your time and research a group that you don’t know before giving them money or personal information.

How to Avoid Charity Fraud

• Research -  Always research a group before giving them money.  Search for them online.  Look for the group’s name and see if the words “scam” or “complaint” come up along side it.  If they do, then the “charity” could really be a scam. If they say they are a part of a well-known group, contact that group directly using information you know is correct (from a legitimate website or phone book).
• Know Where Your Money Is Going -  Many charities hire fundraising organizations or other organizations to help them raise money.  While that is not necessarily a scam, it is important to realize that part of your donation will likely be used for administrative or other costs.  Before giving, research how much of your donation will go directly to the charity.
• Document Your Donations -  Always write down when you donated, who you donated to, and how much money you gave.  Writing down your donations will help you be on the lookout for scams that claim you already donated to them, even though you didn’t.
   

What to do if you become a Victim

• Document it -  Write down anything you remember about the conversation you had or message you received that encouraged you to donate to the charity.  
• Take Action and Report -  Call your bank to advice of any fraudulent activity. You can report an incident of charity fraud through the Federal Trade Commission by going online to https://www.ftccomplaintassistant.gov/.
• Tell Your Friends and Family -  Were you the victim of a charity scam?  Did someone take your money or your personal information?  Tell your family and friends right away.  These scammers could also try to take money from people you know.