Giving That Counts
By: Source: AARP.org Date Posted: 2005-09-01 15:02:00-04:00
Whether it is a hurricane, flood, or wild fire, Americans are very generous in donating money to help the victims of natural disasters. But unbelievably, scam artists use these news headlines to try to take advantage of our generosity. Reports come in almost immediately after a disaster about telephone and email solicitations asking people to send money for recovery efforts. These can be scams designed to steal your money or credit card numbers.
Before you make a donation, be certain that your money is going where you want it to go. Just because someone claims the money will be used on behalf of a charity does not mean your money will really go to that cause or charity.
If you don't know who is asking, don't give.
When a stranger asks for a donation, do not assume that the person is honestly raising money for victims. Con artists say they are raising money on behalf of a legitimate organization, but actually they have no connection with true organizations. Web-based scams may say they are raising money for the Red Cross but then direct people to send their money to a fraudulent account.
Take the time to get more information.
Solicitors may come door-to-door, stand on street corners or in shopping malls, advertise in newspapers or on the radio, send letters or emails, or call on the phone. You may be pressured to give money on the spot, before you have a chance to think. You'll want to know how much of your donation will actually get to the victims, so ask for written financial information before you give.
Avoid "Instant" Charity Web Sites
New web sites can spring up that look on the surface like they are seeking donations. Checking the URL registration might give you a clue as to who is behind the site, but even then there is no guarantee that one cent of your donation would go anywhere other than the pocket of the creator. Watch out for phishing emails pretending to be from a legitimate organization. Inevitably they will direct you to spurious web sites. They only want your bank or credit card numbers to invade your accounts; not to forward your money to hurricane victims. Do not click on any link to any site from an email even if the email or the site look legitimate. If you want to give online, type in the charity's web address yourself.
Warning Signs of a Scam
- Appealing to your emotions without saying how the money will help
- Offering to send someone to pick up your contribution
- Requesting your credit card number or bank account
- Failing to explain the operation's administrative costs and programs
- Using a similar sounding name that suggests a well known charity
- Expecting payments for gifts, such as greeting cards, address labels, or religious tokens
Protect your charitable dollars
It is good to be generous, but take precautions to make sure that your donations will get where you want them to go.
- Ask for and review written financial information before making a donation.
- Call your state Attorney General or Secretary of State to see if the charity is registered. In some states, charities must file financial disclosures.
- Pay with a check — not cash — made out to the charity, not the fundraiser.
- Contribute directly to the charity, not the fundraiser.
- Keep written records of your donations and pledges. Check your records if someone says you made a pledge you don't recall.
- Know the difference between " tax deductible " and " tax exempt. " Donations to tax-exempt organizations are not necessarily tax deductible for you. If your donation is tax deductible, get a receipt.
- Don't give your credit card number or any personal information over the phone or in response to an email.
AARP Resources
Identity Theft
Keep thieves from your good name.
Beware of Thieves Who ‘Phish’ Online to Hook Your Identity
How fake emails steal identity and money.
Stop Dishonest Telemarketers
Steps to take to avoid telemarketing fraud.
Additional Resources
Federal Trade Commission
Report charity fraud online with the Federal Trade Commission.
BBB Wise Giving Alliance
Check out charities, how much money goes to fund raising, and contact information.
Charity Navigator
Well-run charities don't pressure older persons to contribute.
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