Charity Scams - How to Tell If a Charity Is a Fraud

Individual Americans contributed a record $374.4 billion to charity in 2023, according to the Giving USA Foundation’s annual report on U.S. philanthropy. This generosity supports many

amazing organizations that put those billions to work for health care, education, environmental protection, the arts and many other causes. Unfortunately, it also opens a door for scammers.

“Giving is very often an emotional decision, not necessarily a logical one,” says Bennett Weiner, executive vice president and COO of the Better Business Bureau’s Wise Giving Alliance, a

charity-monitoring organization. “People want to respond to issues they care about or they hear about on the news.” And scammers capitalize on donors’ goodwill to line their pockets. “The

vast majority of nonprofit organizations that are raising funds are doing so ethically and by the book. I do think that there are unfortunately times when unscrupulous people exploit the

trust and generosity of others,” explains Laura MacDonald, founder of the Benefactor Group, which advises charities on fundraising practices. But it’s possible to ensure your donations go

to organizations that are genuinely serving others, not helping themselves, by learning to recognize how scammers operate and taking a few precautions before handing over your check. Video:

4 Ways to Avoid a Charity Scam HOW CHARITY SCAMS WORK Scammers appeal to your emotions with heartrending stories, then keep the bulk of the cash themselves. Like genuine nonprofits, they

reach you via telemarketing, direct mail, email and door-to-door solicitations. They might make appeals on social media and create well-designed websites with deceptive names. Here are a few

common tactics scammers use. CAPITALIZE ON DISASTERS AND HUMANITARIAN EFFORTS. Photos of people trying to rebuild their lives after a natural disaster or in an area of conflict can make us

open our hearts and wallets. When these events are in the news, “questionable operators know that the iron is hot,” Weiner says. “People are likely to give unquestioningly and may give to

the first request they get.” MIMIC A GENUINE CHARITY’S NAME. Scammers often imitate the names of familiar, trusted organizations to deceive donors. “Some of the questionable operators are

counting on the fact that you’re not going to look further to see if that’s the one you’re thinking of and you’re just going to give,” Weiner says. PRETEND YOU HAVE GIVEN BEFORE. Scammers

often exploit those with cognitive issues who might not recall their giving history. They “will call people, and they’ll imply that they have already made a pledge in the past and that

they’re just calling to follow up on where their donation is,” says Laurie Styron, CEO of CharityWatch, an independent charity-monitoring organization. USE ONLINE CROWDFUNDING. You may get a

plea on social media to help someone who has a devastating illness such as cancer or has lost their home due to fire. Anyone set up an account on a crowdfunding site and post a fake story

and photos. “They can have that campaign set up and then be gone in a blink of an eye,” Styron says.