How to give sensibly and steer clear of charity fraud?

January 2, 2023
How to give sensibly and steer clear of charity fraud

Charity fraud has been around for a while, and it is particularly prevalent over the holidays when people are more prone to give from the heart and their wallets. Therefore, be on the lookout for red flags and conduct your own research if you want your money to support humanitarian endeavors rather than enrich con artists. Continue reading to learn how to spot charity frauds.

How are charity frauds carried out?

False charities raise funds without actually doing much good deeds. Instead, charity fraudsters profit from the donations for themselves.
You may be targeted by scam organizations through emails, social media posts, direct mail, phone calls, online fundraising platforms, or they may just knock on your door to spread the word about their phony causes. Around the holiday season or following a natural disaster, con artists are more active in order to take advantage of people’s kindness.
Armed crises like the existing conflict between Russia and Ukraine may also lead to an upsurge in the emergence and self-promotion of phony charity efforts. Therefore, be wary of the warning signs indicated below.(charity fraud)

How to give sensibly and steer clear of charity fraud


Seven indicators that a charity is phony

The primary red flags you should look out for to prevent falling victim to a charity fraud scam are listed below. While some warning indicators are visible upon closer inspection, some need independent research:

1.There are no evaluations for the charity, reviews, or specifics showing where the funds are spent. A legitimate charity will have ratings and reviews online. Additionally, it will be transparent about how it has allocated its cash thus far and how it intends to disperse the amounts being raised. Consider donating to a reputable organization to prevent squandering your money.

2.Cash, gift cards, and wire transfers are the preferred payment methods for charity fraudsters. These techniques make it simple to get money that is hard to track down. Real charity are happy to collect donations in any form, including the safest ones like credit card or cheque.

3.After selecting “Donate,” new information is presented to you. If the payment information you got after clicking the “Donate” button does not match the information you previously supplied (such as the recipient’s name, billing address, or bank account number), you have probably been the subject of a scam.

4.The website lacks security. Scammers work using bogus websites that could include malware that tracks your internet behavior and collects your data. Some fraudulent websites attempt to gain your confidence and your money by imitating the websites of reputable, well-known organisations. Check the URL bar to see if the website you’re viewing is encrypted with TLS, which is shown as HTTPS, where the “S” stands for “secure.”

5.It is not tax deductible to give. You should be able to receive documentation proving your gift is tax-deductible from the charity. If not, the charity could be a ruse. If the organization is a recognized charity and has tax exempt status, which means your gift will also be tax deductible, you should check your local Revenue Service database.

6.There is pressure on you to give. If you are being pressured to provide money immediately soon, you’ve undoubtedly run into charity fraudsters. A true, officially recognized charity would never put pressure on its supporters and would always accept their contributions.

7.It asks for far too much information about your finances or personal life. You should not supply any personal information, including your Social Security number, if a nonprofit group requests it. Instead, you should choose not to donate.(charity fraud)

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