Charity Scams often use holidays, community events or natural disasters to trick people into making fake donations. Scammers may call and use emotional stories or lies about their affiliations as a way to take advantage of your generosity. But if you have a cause that is meaningful to you or you are looking to donate, there are ways to spot scammers and make sure that your money is going to a legitimate charity.
The best way to avoid fraudulent charities is to do some research before gifting. Consumers should check for reports of previous complaints, confirm how their money will be used and make donations using secure payment methods.
The Federal Trade Commission provides many tips to assist with uncovering scams including those scammers that call looking for donations, fake charities soliciting on social media and organizations mis-using donated gifts-in-kind. They suggest that consumers take some steps before donating, including the following;
“Five Things To Do Before You Donate to a Charity
- Search online for the cause you care about — like “hurricane relief” or “homeless kids” — plus phrases like “best charity” or “highly rated charity.” Once you find a specific charity you’re considering giving to, search its name plus “complaint,” “review,” “rating,” “fraud,” or “scam.” If you find bad reviews, it might be best to find another organization.
- Check out the charity’s website. Does it give you details about the programs you want to support or how it uses donations? How much of your donation will go directly to support the programs you care about? If you can’t find detailed information about a charity’s mission and programs, be suspicious.
- Use one of these organizations that help you research charities:
- Find out if the fundraiser and the charity are registered. Some states require that charities register with the state regulator. Check to see if a fundraiser and the charity they’re calling on behalf of are registered with your state’s charity regulator.
- Check if the donation will be tax deductible. If this is important to you, confirm that the organization you’re donating to is registered with the IRS as a tax-exempt organization. Look up the organization in the IRS’s Tax Exempt Organization Search.”
The charity regulator for New York is the New York State Office of the Attorney General and “all charitable organizations operating in New York State are required by law to register and file annual financial reports with the Attorney General's Office. This includes any organization that conducts charitable activities, holds property that is used for charitable purposes, or solicits financial or other contributions.” The CharitiesNYS.com website provides additional Tips for Charitable Giving. Consumers can utilize the Pennies for Charities database as a resource to search for registered charities. In addition, their office handles the investigation of complaints submitted by consumers. The NYS Attorney General’s Charities Complaint/Inquiry form can be found here.
Additional information on charity scams can be found at https://consumer.ftc.gov/all-scams/charity-scams.
If you have been scammed, identified a potentially fraudulent charity or have questions about avoiding a charity scam, please contact our office for assistance. The Erie County Office of Consumer Protection can be reached by phone at 716-858-1987 or via email to consumerprotection@erie.gov.