How to Spot Charity Fraud

Signs of a charity scam

Here are a few red flags that indicate the charity reaching out to you may not be aboveboard.

Pressure to give immediately. A legitimate charity will welcome your donation whenever you choose to make it.

A thank-you for a donation you don’t recall making. Making you think you’ve already given to a cause is a common tactic used by unscrupulous fundraisers.

A request for payment by cash, gift card or wire transfer. These are scammers’ favored payment methods because the money is easy to access and difficult to trace.

How to make sure you’re giving to a genuine charity

Be proactive. Instead of waiting until a charity asks you, think about the causes you care about, such as veterans, and do your research when you have time to devote to it, Styron suggests. That way “when somebody calls, you can say, ‘Thank you, I appreciate what you do. But I have a group of charities that I already give to,’ ” she adds.

Examine its website. Look through the charity’s website for specifics about its programs, finances, governance oversight and impact. This should be clearly laid out. “You shouldn’t have to be Sherlock Holmes to figure out what the organization is actually funding,” Weiner says.

Consider who runs the charity. “I look at the board and the staff and look at their LinkedIn profiles to make sure they have expertise in the area,” MacDonald says.

Check watchdog sites. Sites such as Charity Navigator, CharityWatch and the Better Business Bureau’s Wise Giving Alliance monitor and evaluate organizations. (See Resources below.)

Check state licensing. Contact your state’s charity regulator to verify that an organization is registered to raise money in your state.

Avoid giving through third parties. A third party can be legitimate but will take a cut. The best way to make sure that a charity gets your gift is to go to its website and donate there.

Use a credit card. Not only can you check your statement to ensure the payment went to the charity but you can challenge a charge if you later find that you were scammed, Styron says.

Don’t share personal and financial information such as your Social Security number, date of birth or bank account number to anyone soliciting a donation. Scammers use that data to steal money and identities. “If you’re making a gift over the phone, a credit card number is all they need,” Weiner says. “If you want a receipt for your taxes, all they need is your email.”

Keep records and watch your accounts. Keep a record of your donations and regularly review your credit card account to make sure you weren’t charged more than you agreed to give or unknowingly signed up for a recurring donation.

Don’t click on links in unsolicited email, texts or fundraising messages on social media platforms; they can unleash malware.

Where to report problems

Contact your credit card company or bank to let them know about the incident and ask if they are able to stop payment on any money you sent to scammers.

Report charity scams to the FBI Internet Crime Complaint Center.

Your state attorney general takes reports of charity scams as well, as do some government agencies, such as some secretary of state offices and departments of consumer protection. The National Association of State Charity Officials has a list .

For support and guidance, the trained fraud specialists at the free AARP Fraud Watch Network Helpline, 877-908-3360, can share information on what to do next and how to avoid future scams. The AARP Fraud Watch Network also offers online group support sessions.

Resources

The Better Business Bureau’s Wise Giving Alliance accredits charities according to a 20-point system that measures their effectiveness, finances, governance and other metrics. You can search by charity and learn tips on selecting a charity.

CharityWatch has a list of its top-rated charities, or you can search by charity and read an assessment of the organization along with how its metrics stack up in areas such as finances, governance and transparency.

Charity Navigator rates charities according to their leadership, culture, finances and other areas. You can search by charity and see the ratings point by point.

This story, originally posted in 2018, has been updated with new advice and statistics.