Avoid Scams! ... What You Need To Know

1. Ignore solicitors
Avoid E.mail Solicitations! Answering an e-mail solicitation can cost you money & open you to identity theft. The solicitation may appear to be a request from a charitable organization that links to a fraudulent site (or even a legitimate site). Providing your personal information can further expose you to future compromises. You should never provide account information, a PIN, a Social Security number, or any kind of identifiable information like that even if you think it's from a legitimate company.

You should also avoid solicitations from tele-marketers. Telemarketing is the most expensive kind of fundraising. On average, telemarketing contracts specify that the telemarketing company keep 80 percent of what they raise. If you're giving $100 to a tele-marketer, the charity is only seeing about $20 of that. If a charity is resorting to telemarketing, it's usually a sign that there are some serious priority flaws in their efforts.

2. Warning signals
The Federal Trade Commission says that complaints about fraudulent charities have increased every year for the past 5 years. Scammers will often set up a website that looks very much like a well know organization to fool you. They can steal the logo & use the phone number of the true charity to fool you.
When making an online donation, be sure that you are using the actual website of the charity where you are trying to offer aid.

3. Do a charity check
Right now much of the relief aid is handled by charities like the Red Cross and the Salvation Army, both of which are mostly concerned with feeding and housing victims. As time goes on, there will be more opportunities to give to different causes. You can match your needs and personal causes with specific charity organization. Check out the charity ratings organization www.CharityNavigator.org. If you're an animal lover you may be directed to the Humane Society. You'll be able to get a brief summary of what the organization is doing and compare it to other charities. The more prevalent smaller, specialized charities are, the more homework you need to do.

Make sure the organization is registered as a 501c3 status organization. This means that they are registered with the IRS and you will able to get a tax deduction on your donation.

4. Designate your gift
Watch out for charities that spend more than 60 percent on administrative costs like advertising or fundraising. When you give a donation, you want your dollar to go as far as possible. So tell the organization where you'd like your money spent. Write on your check exactly how you want your donation used. By providing this information, the charity is now obligated both ethically and legally to spend the gift in that manner.

5. Be a tattletale
State Attorney Generals have begun to file lawsuits and designate cyber crime units to track charity scams on the Internet. You can play a key role in preventing these scams from taking advantage of peoples' desire to help. If you are a victim of an online scam, or you want to report a suspicious charity, do it now! First, contact the FBI's Internet Crime Complaint Center. You can even file a complaint online. Use the below links to find helpful resources.


Compare Charities
Charity Navigator


Report Online Charity Scams
Scam Busters
FBI's Internet Crime Complaint Center
Better Business Bureau's Wise Giving Alliance
The Federal Trade Commission