Blog Post  Charity Check: Avoid Donation Scams with These Tips

Giving Tuesday through December is a great time to support nonprofit organizations, many of which rely on year-end giving to meet or exceed annual fundraising goals. It is also the last chance for donors to make tax-deductible gifts before the new year. However, not all charities asking for donations are legitimate. Before you donate, it's important to be sure your money is going to the right place.

Be Aware of These Popular Charitable Scams

Here are some popular charitable scams to watch out for during the giving season:

Fake Charities in Response to Natural Disasters and Crises: Scammers often create fake charity campaigns after events like hurricanes or earthquakes. They use names that sound legitimate or mimic well-known charities to take advantage of people's urgency to help. The IRS recently warned about an increase in scams following disasters, where fraudsters aim to collect money or personal information from unsuspecting donors by posing as relief efforts.

Social Media and Crowdfunding Scams: Platforms like social media and crowdfunding sites make it easy for scammers to reach large audiences quickly. They often use emotional stories and urgent appeals to garner donations for fake causes. With little verification required to start a crowdfunding campaign, these platforms can be vulnerable to fraudulent activity, especially following high-profile events or crises.

Phone and Email Scams: Fraudsters may reach out directly via phone, email, or text, pretending to represent charities. They often use high-pressure tactics, urging immediate donations to manipulate donors emotionally. Sometimes they even spoof caller ID to appear as if they are calling from a legitimate organization, says Kiplinger.

Donate to Reputable Organizations that Align with Your Values

Before you give, ensure your donations are going to a legitimate charity and making a meaningful impact on the causes you care about. Here are some tips, outlined by Forbes, to help you give safely and effectively.

1. Define Your Giving Strategy
   Start by setting a clear strategy for how much you want to give, and which causes or organizations to support. Be mindful that not all charities are trustworthy, so think about how your contributions can truly make a difference. Research carefully to ensure the organizations align with your values and are legitimate, helping you avoid falling for charity scams.
2. Review Your Charitable Choices
   It’s essential to thoroughly review the charities you support. Ask yourself if these organizations are still solving problems that matter to you and whether they are credible. Avoid donating to charities out of habit since they may no longer align with your values. It’s okay to stop giving to organizations that don’t connect with you or ones that start to raise red flags. You should also feel comfortable declining donations to organizations that solicit you without your initiative.
3. Use Charity Recommender Services
   If you’re unsure where to donate, consider using charity recommender services like Giving Compass, Charity Navigator, Charity Watch, or GiveWell. These services offer searchable databases of charitable organizations across various fields, helping you find organizations that align with your values and goals.
4. Check an Organization’s Tax Information
   Every charity’s tax returns are open to public inspection and can be accessed through platforms like Guidestar. Reviewing a charity’s financials can provide valuable insights into its financial health and how it allocates its resources.
5. Monitor Your Giving
   To feel confident that your contributions are making a difference, regularly monitor and evaluate the impact of your giving. Set aside time to review the charities you support by visiting their websites and reading about their ongoing projects. Many organizations also publish annual impact reports that detail their effectiveness in achieving their mission. Make sure you receive these reports to stay informed about how your donations are being used.

Report Scams Quickly

If you suspect you’ve fallen victim to a charity scam or encounter a suspicious organization, reporting the incident promptly can help protect others and potentially lead to recovering lost funds. Start by reporting the scam to the Federal Trade Commission (FTC), which collects and investigates complaints related to fraudulent charitable organizations. You can easily file a report on the FTC’s Report Fraud page, which allows you to detail the scam and provide any documentation you may have.

Additionally, report the scam to your state’s Attorney General office, which often has resources to address consumer protection issues and pursue legal action against fraudulent charities. In Massachusetts, for example, the Attorney General’s Office provides a consumer complaint process where residents can report deceptive practices by charities. You can also file a complaint with the Better Business Bureau’s (BBB) Wise Giving Alliance and use their Scam Tracker to alert others and review similar cases. Taking these steps helps law enforcement track scam patterns, potentially shuts down fraudulent operations, and protects future donors.

We’re Here to Help

The Office of Consumer Affairs and Business Regulation (OCABR) helps protect and empower consumers through advocacy and education. If you have questions about fraud and scams, or other concerns, call our Consumer Hotline at 617-973-8787, Monday through Friday, 9 a.m. to 4:30 p.m. Live language translation is available.