Charity Scams
It would be negligent of us to rewrite what is perfect information coming from government websites on this very important topic. Gyftit has created the charities page especially to inform readers of the multiple areas of donating that are available. Unfortunately, these charities are open to abuse and scammers have found that people's heart strings can be manipulated. Reading this article will help you avoid the heartbreak of knowing you have been scammed, thus reducing your enthusiasm for donating.
The Canadian government website at: Scam Avoidance gives us the following information:
‣ Ask for written information about the charity, including name, address and telephone number. A legitimate charity or fundraiser will give you information about the charity's mission, how your donation will be used and proof that your contribution is tax deductible.
‣ Ask the solicitor for the registered charitable tax number of the charity. Question any discrepancies. Confirm the charity's registration information through the Canada Revenue Agency (1-800-267-2384) or online.
‣ If someone comes to your door asking for a donation, ask the collector for details about the charity such as its full name, address and how the proceeds will be used. If they become defensive and cannot answer your questions, close the door.
‣ The best way to avoid charity scams is to make a list of the charities that are most important to you, research them thoroughly and then donate directly.
The American government web site at: American Anti scam
Information gives us the following info:
When you decide to support a cause you care about, you want your donation to count. Doing some research and planning your giving can help ensure your donations get where they'll do good. Here are tips to help you plan your donation — and avoid scams.
‣ Looking for a charity to support — Search for a cause you care about — like "hurricane relief" or "homeless kids" — and 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."
‣ Use these American Anti scam Information organization to help you research charities.
‣ If someone wants donations in cash, by gift card, or by wiring money, don't do it. That's how scammers ask you to pay.
‣ To be safer, pay by credit card or cheque.
‣ It's a good practice to keep a record of all donations, and review your statements closely to make sure you're only charged the amount you agreed to donate and that you're not signed up to make a recurring donation.
‣ Before clicking on a link to donate online, make sure you know who is receiving your donation.
‣ 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 that sound a lot like the names of 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 sweepstakes winnings in exchange for a donation is not only a scam, it's illegal.
If you see any red flags, or if you're not sure about how a charity will use your donation, consider giving to a different charity. There are many worthy organizations who will use your donation wisely.
Report scams to FTC.gov/complaint. Find your state charity regulator at nasconet.org and report to them, too. Share any information you have — like the name of the organization or fundraiser, phone number, and what the fundraiser said.
This is another article on the American website: Donating Online
When donating through an online giving portal, be sure you know how your money gets to the charity you're supporting, how much of it gets there, and when. Here's some guidance on how to do that.
Online giving portals have grown in popularity, letting you choose from a list of charities you can support directly from that platform. Often, you get to them through a crowd-funding or social media site, or through an online retailer or other website. These portals make it quick and easy to donate to the cause you want to support. But, what you might not know is that your donation may not go directly or immediately to the charity you've selected.
When you donate through an online giving portal, your money may first go to an organization that accepts the donation and issues your tax receipt. That intermediary organization might keep a service fee. Then, it sends the rest of your donation to the charity you originally designated. It can take 30 days or more for the charity to get your donation.
So how do you know where your money goes, and who gets how much? The best online portals will have this information. It may take you a little bit of research on the website, but you should be able to find this information. Here's what to look for:
‣ Where your money goes. Online giving portals should tell you who gets your donation and how your money gets to the charity or beneficiary you chose.
‣ Fees. The online portal should tell you if it keeps part of your donation as a fee before sending the rest to your chosen charity. Consider whether the charity would get more of your donation if you donated to the charity directly.
‣ Timing. Online giving portals should say how long it will take for the charity to get your donation.
‣ Follow-through. Just in case your donation can't be sent to the charity you chose, the portal should say what happens in that case — and how often that happens.
‣ Your info. Check if you can choose whether or not your information is shared with the charity or anyone else, and whether the portal gives you a choice.These details should be clear and easy to find without hunting through fine print. If the details are not clear or if the portal doesn't give you this information at all — consider taking your donation money elsewhere. There are plenty of other ways to donate. You can always go directly to the website of the charity you want to support. Also, even if a charity is listed on an online giving portal, you should still do a little homework on that charity. For tips on wise giving, check out ftc.gov/charity.
Tell the FTC and your state's charity regulator if you see an online portal that does not have the details you are expecting.
The Australian government at
Fake Charities Australia and Types of scams advises the following:
Scammers impersonate genuine charities and ask for donations or contact you claiming to collect money after natural disasters or major events.
Fake charities try to take advantage of your generosity and compassion for others in need. Scammers will steal your money by posing as a genuine charity. Not only do these scams cost you money, they also divert much needed donations away from legitimate charities and causes.
Fake charity approaches occur all year round and often take the form of a response to real disasters or emergencies, such as floods, cyclones, earthquakes and bushfires.
Scammers will pose as either agents of legitimate well-known charities or create their own charity name. This can include charities that conduct medical research or support disease sufferers and their families. They may also pose as individuals needing donations for health or other reasons.
Scammers may also play on your emotions by claiming to help children who are ill.
Fake charities operate in a number of different ways. You may be approached on the street or at your front door by people collecting money. Scammers may also set up fake websites which look similar to those operated by real charities. Some scammers will call or email you requesting a donation.
‣ You've never heard of the charity before, or it is well-known but you suspect the website, email or letter may be fake. A fake website may look almost identical to a legitimate charity site, changing only the details of where to send donations.
‣ The person collecting donations on behalf of the charity does not have any identification. Remember, even if they do have identification, it could be forged or meaningless.
‣ You are put under pressure or made to feel guilty or selfish if you don't want to donate.
‣ You are asked to provide a cash donation as they don't accept cheques. Or, they want the cheque to be made out to them rather than to the charity.‣ You are not given a receipt. Or, they give you a receipt that does not have the charity's details on it.
‣ Approach charity organisations directly to make a donation or offer support.
‣ Check the organisation's name and look them up. Check the website address to make sure it's the same as what you searched for.
‣ Legitimate charities are registered — you check an organisation's credentials on the Australian Charities and Not-for-Profits Commission website to see if they are a genuine charity.
‣ Never send money or give personal information, credit card details or online account details to anyone you don't know or trust.
‣ If you are approached by a street collector, ask to see their identification. If you have any doubts about who they are, do not pay.
‣ If you are approached in person, ask the collector for details about the charity such as its full name, address and how the proceeds will be used. If they become defensive and cannot answer your questions, close the door.
‣ Avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer, international funds transfer, pre-loaded card or electronic currency, like Bitcoin. It is rare to recover money sent this way.
We encourage you to report scams to the ACCC via the report a scam page. This helps us to warn people about current scams, monitor trends and disrupt scams where possible. Please include details of the scam contact you received, for example, email or screenshot.
We also provide guidance protecting yourself from scams and here to get help.
Spread the word to your friends and family to protect them.
Making a charitable donation to help those in need is a generous decision. However, if you have been a victim of an online scammer impersonating a real or fake charitable organization, they may have stolen your money and your personal information.
Here are some of the warning signs of imposter charity scams:
‣ As a rule, any organization requesting that you send funds to a foreign bank is a scam.
‣ Valid charity organizations will not include an attachment in their email communications.
‣ Be suspicious of anyone contacting you online claiming to be a victim.
‣ If someone is trying to rush you into making a donation — it's likely a scam.
‣ Scammers often make lots of vague and sentimental claims but give no specifics.
If you think you or someone you know has been affected by a charity imposter scam, we recommend that you act immediately, by following our guidelines below, and then proceed to our Report, Recover, and Reinforce sections for further assistance.
‣ Stop all contact with the individual(s) who contacted you.
‣ Contact your bank or financial institution to close or change any compromised accounts.
‣ Go to this site to see a copy of your free annual credit report.
‣ Save all information or messages about the advertisement and/or the individual(s) you contacted about the charitable donation. You may need to provide this information when you file a report.
‣ Report the incident to the site where you first saw the promotion or advertisement, and provide the information you have available.
Facebook Report Form Instagram Report Help Snapchat Report Method
Twitter Reporting Method YouTube Report Help Craigslist Report Method
The Wise Giving Guide is published three times a year to help donors make more informed giving decisions. Each issue includes a cover story on a topic related to charity accountability and a compilation of the latest national charity evaluation conclusions completed by the BBB Wise Giving Alliance. Wise Giving
Advice for donors, including information on the importance of charity annual reports, protecting personal data, participating in charity walk fundraisers, and volunteer vacations. Wise Giving Guide also go to Donor Handbook
Wikipedia has information at charity scams
The organization AARP at has this information at AARP (Scams and Frauds)
Here are some common charity scams that you should be aware of: Smart Giving
You receive an e-mail from a group or person that you have not had a prior relationship making a request for your support. In some cases the group is not legitimate or the person is not as described or the e-mail is phishing for financial information from you. If unsure about an e-mail do not click on any links.
A tax preparer suggests that you can reduce your taxable income by including a tax receipt for a donation that you did not make or for an inflated amount. Don’t participate or the consequences could include jail time. Let CRA know if you ever made such an offer.
A promoter of a complicated scheme involving pharmaceutical donations says that you can invest $1000 and get an official donation receipt for $5000 and thereby you will have made money off your donation/investment. CRA is denying all such claims and charging interest and penalties which can be quite substantial.
A person calls you from a nice sounding organization that supports police, firefighters, kids with cancer or some other nice sounding endeavour. If you have never heard of the organization before, have had no previous affiliation with the organization or it sounds sort of but not exactly like a well known charity, it may or may not be a registered charity, . The person making this unsolicited call may be a third party and may be taking up to 95% of the funds by way of commission or otherwise. It is best to just say no and donate to a charity that you are knowledgeable about and can verify the work that it is doing.
The best way to avoid charity scams is to think about what charities are most important to you, make a list of those charities, do some research and then donate directly to the charities. This is the safest and most efficient way to donate to charity. Do not wait for some person to call you or knock on your door from some charity you have never heard of.
We hope this information has made you more aware of what to avoid when acting on your altruistic feelings. It is unfortunate that we must take these precautions but the world lately has become more hateful and less loving. Let’s put some of it back. Support your charities as much as you can.
Photo Credits: See Acknowledgements