The Blog
How to Avoid Charity Scams
Scams
Aug. 15, 2023
When donating to a charity, you want to make sure that your donation counts and helps the people you intend for it to help. So, it is important to do some research before giving to a charity. Here are some things you can do to ensure that you are giving to a legitimate cause and avoid donating to a scam.
Five Things to Do Before You Donate to a Charity
- Search online for the cause you are interested in. If you know you would like to help a specific group of victims, start with a search such as “hurricane relief” or “wildfire relief”, plus phrases like “best charity” or “highly rated charity.” Once you find a charity you are 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. Never let anyone rush you into donating before you do your research.
- 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.
- Check out organizations that do research on charities for you. 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. Enter the charity you are interested in into the sites below to see their trustworthiness.
- 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.
Report scams to:
- The FTC at ReportFraud.ftc.gov
- Your state charity regulator. Find who that is at nasconet.com
When you report a charity scam, share any information you have, like the name and phone number of the organization or fundraiser, how the fundraiser contacted you, and what the fundraiser said.