Charity Fraud

Check before you donate! Dont be the victim of Fraud!

It really is heartwarming to give away some of your money and goods to those less fortunate. Fortunately, many people like to give with an open heart to help others in need. Still, you have to be aware! Unfortunately, we’ve created a climate that's ripe for fake charity scams and scam artists. They know they can tug at our heartstrings -- and rake in the cash. From all of our articles, you could learn that fraudsters are heartless criminals always praying on the weak ones. Lately, there has been a large increase in charity frauds. So, if you’re considering a request for a donation to a charity, do some research before you give. We are going to try and help you through the following article as much as we can with the signs through which you can recognize if the charity is a real one or a fake one. By finding out as much as you can about the charity, you can avoid fraudsters who try to take advantage of your generosity. Here are tips to help make sure your charitable contributions are put to good use.

How to recognize a fake charity

Fake charities aren’t always easy to spot. They are often “packed” in seemingly legitimate agencies, so they look pretty real. They may even carry 'ID' in the name of the charity, complete with a logo. These scam artists use all of the standard methods to collect 'donations' for their charity fraud -- tables at the local mall, going door-to-door, email, and telemarketing. All this makes charity scams harder to spot. However, here are 8 tips to help spot charity scams: 1. Be cautious of every opportunity that presents itself in the wake of some big disaster that gets a lot of media time. 2. ALWAYS ask for the name, address, and phone number of the charity -- and whether or not it is registered. If the presenters claim that it is registered, get a registration number. 3. Verify with the office of the charity that there is indeed a campaign going on, or that they've authorized the charity drive that you're being invited to contribute to. 4. Don't ever donate cash if you can help it. Write a check to the charity -- not to the person standing in front of you. This also helps you document the donation for your records and for your tax return. And don't give out bank information! 5. Ask what percentage of your donation goes directly to the cause. Legitimate charities will have ready answers because they are used to the question. 6. Get a receipt with the name of the charity on it. 7. Be especially cautious about getting a charity donation request by email. Most legitimate charities don't use email for their solicitations. 8. Be especially wary about charities that claim to be raising funds for the local police or firefighters. Check with them first! 9. Read up on the latest scams and fraud, be aware of how criminals are trying to take your money. Don't give in to pressure or guilt trips about “suggested donations” or “requested minimum contributions.” Once you've determined that the charity is legitimate and you've decided you want to contribute, simply give what you can and want to give -- it will be appreciated. What you should avoid These days, charities and fundraisers (groups that solicit funds on behalf of organizations) use the phone, face-to-face contact, email, the internet (including social networking sites), and mobile devices to solicit and obtain donations. Naturally, scammers use these same methods to take advantage of your goodwill. Regardless of how they reach you, avoid any charity or fundraiser that: Won’t give you detailed information about its identity, mission, costs, and how the donation will be used. Won't give you receipt so your cash donation can be tax deductible. Uses a name that closely resembles that of a better-known, reputable organization. Thanks you for a pledge you don’t remember making. Uses high-pressure tactics like trying to get you to donate immediately, without giving you time to think about it and do your research. Asks for donations in cash or asks you to wire money. Offers to send a courier or overnight delivery service to collect the donation immediately. Guarantees sweepstakes winnings in exchange for a contribution. By law, you never have to give a donation to be eligible to win a sweepstakes. Writing about this subject is very delicate matter, and one always worries that it is going to affect on people donating less. We are in no way promoting that, we are just saying you should be more careful with your donations, and you should make sure that they end up where you intended them to end up, and not in the hands of fraudsters.