Charity Scams: How to Donate Safely

By Chad Sanders

Ensuring Your Charitable Donations Go to Legitimate Organizations

Note: Names and places in this story have been changed to protect the individuals involved.

Giving to charity is a noble act, but unfortunately, scammers often exploit people’s generosity. Charity scams can trick you into donating to fake organizations, diverting your funds away from those in need. Here are some essential tips to ensure your donations go to legitimate charities, along with a story to illustrate the importance of vigilance.

Key Strategies to Avoid Charity Scams

1. Research the Charity

   • Tip: Before donating, research the charity to ensure it’s legitimate. Use websites like Charity Navigator, GuideStar, or the BBB Wise Giving Alliance.
   • Red Flag: Lack of information on charity review websites or a negative rating.

2. Be Wary of High-Pressure Tactics

   • Tip: Scammers often use high-pressure tactics to get you to donate immediately. Legitimate charities will give you time to make an informed decision.
   • Red Flag: Pressure to donate immediately without allowing time for research.

3. Verify the Charity’s Registration

   • Tip: Legitimate charities are registered with state and federal agencies. Check if the charity is registered with the IRS and your state’s charity regulator.
   • Red Flag: Charity cannot provide registration details or is not listed with regulatory agencies.

4. Watch for Red Flags

   • Tip: Be cautious of charities that refuse to provide detailed information about their mission, finances, or how donations are used.
   • Red Flag: Vague or evasive responses when asked about operations and financial transparency.

5. Donate Directly through Official Websites

   • Tip: Avoid donating through third-party links or platforms. Go directly to the charity’s official website to make your donation.
   • Red Flag: Requests to donate via unofficial or third-party platforms.

6. Be Skeptical of Unsolicited Requests

   • Tip: Be cautious of unsolicited requests for donations, especially those received via phone, email, or social media.
   • Red Flag: Unsolicited donation requests from unknown sources.

7. Use Safe Payment Methods

   • Tip: Use credit cards or secure online payment services for donations. Avoid cash, wire transfers, or gift cards.
   • Red Flag: Requests for payment via cash, wire transfer, or gift cards.

A Cautionary Tale: Edna’s Encounter with a Charity Scam

Edna, a retired local lady, had always been passionate about supporting children’s education. One day, she received a phone call from someone claiming to represent a new charity focused on providing school supplies to underprivileged children. The caller’s pitch was compelling, and they used high-pressure tactics, urging Edna to donate immediately to take advantage of a matching donation offer.

Feeling the urgency, Edna provided her credit card information over the phone. However, after the call ended, she felt uneasy. Edna decided to do some research and found no information about the charity online. Alarmed, she contacted her credit card company to report the suspicious transaction and cancel her card.

Edna shared her experience with her neighbor, who suggested checking the IRS and Charity Navigator websites. Edna realized she had been scammed but was relieved she had acted quickly to cancel her card. Now, Edna is more cautious and always verifies charities before donating. She also warns her friends about high-pressure tactics and the importance of researching charities.

Conclusion

Charity scams can exploit your goodwill, but by taking the time to research and verify organizations, you can ensure your donations reach those in need. Always check the legitimacy of a charity, be wary of high-pressure tactics, and donate directly through official websites. By staying informed and cautious, you can protect yourself from scams and make a positive impact with your charitable contributions.