Good tidings can spoil good judgment when making year-end donations
Originally published December 04, 2011
During this time of year, many individuals and businesses are excited to help those in need by giving to charity. Unfortunately, scam artists are jumping with joy, waiting to unwrap donors' gifts and pocket the cash. To prevent a grinch from stealing your holiday cheer, BBB urges you to research a charity before offering a contribution.The trap Scammers often deceive the public by using names that resemble those of well-known organizations. Phone solicitors may seek contributions allegedly on behalf of familiar charities without authorization from those organizations. Some of the calls may be cons trying to acquire credit card or other personal information. Online giving is increasingly popular but requires donor alertness. Setting up bogus websites, scammers will misdirect genuine signs of charity into their personal bank accounts. Spam or email messages asking for a contribution may be used in a "phishing" scam. This is usually another attempt to capture personal information. Holiday grinches will even knock on your door with emotional pitches to persuade you to give. They'll wear seasonal outfits or familiar-looking uniforms, and carry forms of identification that look real. The bottom line Look-alike charities: Watch out for charities with names similar to those of well-known organizations. Contribution collectors: Stay cautious of charities that offer to send a representative to collect donations. Email scams: Be skeptical of emails seeking charitable contributions. Many unsolicited messages received through email are fraudulent. Promised prizes: Be cautious of guaranteed sweepstakes winnings in exchange for your contribution. BBB tips • Make sure the organization you are contributing to is a charity, which means the organization will have filed a 990 with the IRS. In Maryland, a charity is required to register with the Secretary of State's Office to solicit. • Don't succumb to pressure to give money on the spot. A charity that can use your money today will welcome it after you had time to do research. • Watch out for appeals that bring tears to your eyes but tell you nothing about how your donation will be used. • Make sure the website's URL ends in .org, not .com. Use a search engine to go to websites of organizations that you are familiar with and contribute directly online. Do not contribute through a link in an email solicitation. Use credit cards only on secure sites. Check for the "s" after the "http" and a padlock or key symbol. • When considering supporting a cause-related marketing campaign, find the answers to these questions: What portion of the purchase price will benefit the charity? What is the duration of the campaign? What is the maximum or minimum total contribution? If the information is not on the item, check the organization's website. • Start your search for a reputable charity at www.bbb.org.
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