Donating safely and avoiding scams
Source: Federal Trade Commission
When you decide to support a cause you care about, you want to make sure your donation goes where you intended. Doing some research and planning your giving can help ensure your donations will do good. Here are tips from the Federal Trade Commission (FTC) to help you plan your donation – and avoid scams.
Do your research
Looking for a charity to support? Do an internet search for a cause you care about. You can type in terms like “hurricane relief” or “children’s resources” You can also use phrases like “best charity” or “highly rated charity.”
When you consider giving to a specific charity, search its name plus “complaint,” “review,” “rating” or “scam.”
These organizations offer reports and ratings about how charitable organizations spend donations and how they conduct business:
• BBB Wise Giving Alliance: www.give.org | 703-247-9321
• CharityWatch: www.CharityWatch.org | 773-529-2300
• The IRS Tax Exempt Organization Search tells you if your donation would be tax deductible: www.irs.gov/charities-and-nonprofits (click on “Tax Exempt Organization Search”)
• The Pennsylvania Department of State maintains registration and financial information on more than 13,000 charities in the Commonwealth at www. pa.gov/agencies/dos (click on “Charities”)
Pay wisely
If donations are required by cash, gift card or money transfer, it is likely a scam. These payment methods cannot be stopped or disputed once they are sent. You should only make donations by credit card or check. These payment methods are traceable and easier to recover.
It’s a good practice to keep a record of all donations. Legitimate charities will send you a receipt or other written confirmation of your donation. Review your bank and credit card statements closely to make sure you’re only charged the amount you agreed to donate. Also, make sure that you’re not signed up to make a recurring donation.
Before clicking on a link to donate online, check the website address bar for a closed padlock icon and the letters “https” before the website address. These indicate a secure connection so your personal and financial information will be protected when it is sent on this website.
Beware of scam tactics:
• Don’t let anyone rush you into making a donation. That’s something scammers do.
• Some scammers try to trick you into paying them by thanking you for a donation that you never made.
• Scammers can change caller ID to make a call look like it’s from a local area code.
• Some scammers use names or acronyms that sound very similar to real charities. This is one reason it pays to do some research before giving.
• Scammers make lots of vague and sentimental claims but give no specifics about how your donation will be used.
• Bogus organizations may claim that your donation is tax-deductible when it is not.
• Guaranteeing prize winnings in exchange for a donation is illegal.
If you notice any of these red f lags, or if you’re unsure about how a charity will use your donation, consider giving to a different charity. There are many worthy organizations that will use your donation wisely.
Report scams to www.ReportFraud.ftc.gov. Share any information you have – like the name of the organization or fundraiser, phone number, website, email or promises made. In Philadelphia, you can report suspected financial fraud and scams 24/7 to Philadelphia Corporation for Aging’s Older Adult Protective Services at 215-765-9040.
