It is a wonderful thing to give to charity.Some people take advantage of others.There are many ways to detect a charity scam.It's a good idea to research any charity before donating.People who only want cash donations are warning signs.Your personal information needs to be protected.Don't give out banking information online and donate via money orders.
Step 1: A charity needs to use the right name.
Well known charities are often used by charity scam artists.Swindlers think you're more likely to give to a charity.Before agreeing to donate, type the charity's name into the search engine.If the search engine is redirecting, something is not right.It could suggest the name of a charity that is well known.The charity is trying to get money by pretending to be a better-known charity.
Step 2: When speaking to a representative, ask the right questions.
Any questions you have will be answered by real charities.Quality charities have nothing to hide and representatives will be happy to assure consumers they're legit.A fraudulent charity won't answer certain questions or give detailed information.Most of the questions should be answered by a solid charity.Is there a way to call you back?Is donations tax deductible?How much of your donations go towards your cause?What organizations do you work with?Is the charity registered in this state?It's the law in 40 states and the District of Columbia for charities to register.You can look them up on the state check-a-charity website if you ask them to give you the charity registration number.The easier prospect will be the one that scammers will move on to.
Step 3: The charity is up.
It's never a good idea to give to a charity on the spot.If there is anything suspicious about a charity's name, always run it through a variety of websites.You can check the charity's reputation on the Better Business Bureau.You will know if the name you were given is registered with the IRS by the re-post of the "EO" or "Exempt Organisation List" by such organizations.There is no way to know if the caller is telling the truth when they tell you where they are calling from.They may have researched the correct answer to your question to perpetuate their scam.You can type the name of the charity into a search engine.You can find news articles about the charity being a scam.
Step 4: During the holiday season, more scrutiny is given to research.
During the holiday season, charity scam are more common.During the holidays, be on alert because you should always research charities before donating.It is possible that you are more prone to scam during this time.Don't agree to donate on the street.Holiday shoppers are often the target of scam artists who try to sign them up for a fraudulent charity.
Step 5: Beware of charities that don't give information.
A charity should not give out information in person or on their website.You may be dealing with a fraudulent charity if you find key information unavailable while researching a charity.Basic contact information, such as addresses and phone numbers, should be upfront for charities.A good scam will have anticipated your question and done some research.Ask specific questions.The potential victim will be moved on by the scam.Reputable charities will tell you where the money goes.You should be able to find detailed information on a charity's website about how donations are used and what percentage of donations go towards the cause.Legitimate charities will have third party reviews to verify their claims.The best scam artists will make an effort to skin a website with positive information, but a little digging will usually uncover a weak storyline and an average scam artist will have ended your call before you were able to search their site online.It is more likely that a charity is fraudulent if it is not upfront about the information.
Step 6: Don't give to charities that try to get you to donate.
Most charities will work hard to get people to donate.This is how charities are able to survive.If a representative is rude even after you decline a donation, you're dealing with a fraudulent charity.It's normal for a charity representative to make a case.They may ask you to reconsider the benefits of their charity.A scam artist will use more aggressive tactics.They may try to guilt trip you into donating, asking "Don't you care about this cause?"A scam artist won't restate their case.They will try to get you to donate after you have declined or requested more information.
Step 7: Make sure the charity can show proof of tax deductibility.
You should be able to claim a tax deduction for donating to a legitimate charity.It's likely a scam if a charity is unwilling or unable to provide this paperwork.Do not work with charities that can't provide such paperwork.
Step 8: Stay away from charities that advertise.
A charity wouldn't conduct a contest for donations.Most of the money given to charities goes towards their cause.You're dealing with a fraudulent charity if a charity claims you can win a prize or money in a sweepstakes as a reward for donating.
Step 9: Cash donations are not a good idea.
Reputable charities track donations carefully and want to make sure there is no risk of the money being lost or stolen.They will not demand cash only donations.A charity trying to prevent donations from being easily traced is likely fraudulent.The money is not being used for charity.
Step 10: If a charity's claims seem too good to be true, be suspicious.
It is worth evaluating a charity's claim of 100% of donations going towards a cause.Administrative, operating, and marketing costs can be considered by charities.A charity may be fraudulent if it claims to put 100% of funds towards a cause.Most charities have to spend at least some of their donations on their cause.Give to charities that claim a percentage of donations goes towards their cause.It is important to read the fine print.The IRS requires charities to restrict donations if they say they are going to a particular cause.It's good to know that many charities include warnings in fine print that don't mention the requirement.
Step 11: Don't forget to pay attention to the news.
There are many news stories about fake charities.There are new charity frauds on the news.It is very suspicious to be contacted by a charity that sounds similar to a recent fraud charity.Before agreeing to give money, research this charity thoroughly.
Step 12: Before an agreement is made, do not give out banking information.
This is a sign that you're working with a fraudulent charity.A legitimate charity will want to make sure that you are comfortable and that your information is secure.This is a sign of a charity scam if you are being asked for your credit card number before donating.Before giving any banking information to a charity, make sure it's legit.
Step 13: Don't email personal information.
A good charity won't pressure you to share sensitive information via email.This is probably a charity scam if the charity asks you to email your social security number.
Step 14: Do not give money orders.
Donations should come through legitimate means.Legitimate charities keep a close eye on donations to make sure they're following the law.Even if the means of obtaining money is not 100% secure for you, a charity that pushes you to wire money or send a money order is likely trying to get you money as quickly as possible.This is a sign of charity fraud.