As we get closer to the end of the year, many of us start looking at charitable donations. Charity fraud rises after a natural disaster and during the holiday season, when individuals seek to make end-of-year tax deductible gifts or are reminded of those less fortunate and wish to contribute to a good cause. Seasonal or natural disaster charity scams can pose greater difficulties in monitoring because of their widespread reach, limited duration and, when done over the Internet, minimal oversight.
Charity scam solicitations may come through cold calls, email campaigns, crowdfunding platforms, or fake social media accounts and websites. They are designed to make it easy for people to give money and feel like they’re making a difference. Scammers may divert some or all the funds for their personal use, and those most in need will never see the donations.
You want your donations to count, so it’s important to do some research before giving to a charity. Here are some things you can do to learn more about a charity and avoid donating to a scam.
Our partners at Federal Trade Commission asks you to do five simple things before you donate to a charity:
- Search online for the cause you care about — like “hurricane relief” or “homeless kids” — plus phrases like “best charity” or “highly rated charity.” Once you find a specific charity you’re considering giving to, search its name plus “complaint,” “review,” “rating,” “fraud,” or “scam.” If you find bad reviews, it might be best to find another organization.
- Check out the charity’s website. Does it give you details about the programs you want to support or how it uses donations? How much of your donation will go directly to support the programs you care about? If you can’t find detailed information about a charity’s mission and programs, be suspicious.
- Use one of these organizations that help you research charities:
• BBB Wise Giving Alliance at www.give.org
• Charity Navigator at www.charitynavigator.org/
• CharityWatch at www.charitywatch.org/
• Candid at www.candid.org/
4. Find out if the fundraiser and the charity are registered. Some states require that charities register with the state regulator.
5. Check if the donation will be tax deductible. If this is important to you, confirm that the organization you’re donating to is registered with the IRS as a tax-exempt organization.
After doing the above steps, what else should you do to avoid donating to a fake charity?
- Don’t let anyone rush you into donating. Scammers rush you so there’s no time to research their claims or think it through.
- Don’t trust your caller ID. Technology makes it easy for scammers to fake caller ID information. Calls can look like they come from your local area code, or from a specific organization, even if they don’t. In reality, the caller could be anywhere in the world.
- If the fundraiser says you already pledged, stop and check. They may lie and say — in a phone call or a mailer — that you already pledged to make the donation, or that you donated to them last year. They think that means you’ll be more willing to donate.
- Listen carefully to the name of the charity, write it down, and then research it. Some scammers use names that sound a lot like other charities to trick you. Do some research before you give.
- Watch out for sentimental claims with few details. Be suspicious if you hear a lot of vague sentimental claims, for example, that the charity helps many families that can’t afford cancer treatment and veterans wounded at war who can’t work, but don’t get specifics about how your donation will be used.
- Don’t donate with a wire transfer, cryptocurrency, or gift card. Anyone asking you to donate this way is a scammer.
After you have donated to charitable organizations, you should do the following:
- Review your bank account and credit card statements. Make sure you’re only charged the amount you agreed to donate ― and that you’re not signed up to make a recurring donation if you didn’t mean to.
- Keep a record of all donations. You may need them later if your donations are tax deductible.
If you feel you have fallen victim to a scammer, report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov and your state charity regulator. Find out who that is by visiting: nasconet.org.
When you report a charity scam, share any information you have — like the name and phone number of the organization or fundraiser, how the fundraiser contacted you, and what the fundraiser said.
I ask you all to share this information. If we all tell one person, and they tell one person, we can make sure more people know how to stop this scam.
John Morales
Special Agent in Charge, FBI El Paso
