Charity Scams

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WHAT ARE THE SIGNS THAT THIS IS A SCAM?

The charity is not properly registered with the Internal Revenue Service (IRS) as a 501(c)(3) charity, eligible to receive tax-deductible contributions.

The charity employs high pressure fundraising tactics by:

o sending “runners” to pick up contributions from your home,
o disguising donation requests as a bill and threatening collection actions for a failure to pay,
o suggesting you are legally bound to fulfill a pledge, which you may or may not have committed to make and are under no obligation to fulfill,
o employing telemarketers who do not clearly articulate the name of the charity for which it is soliciting or who provide vague responses to questions asked by donors,
o implying a larger percent of your contribution will support the charity’s programs than is true, or
o selling typically inexpensive goods for an inflated price (e.g., a box of garbage bags or light bulbs for a $50.00 donation).

The charity’s request is long on emotion, but short on details:

o The charity fails to provide a current address where its services are conducted or refuses to provide a roster of its board of directors, management team, or key employees.
o The charity uses vague statements to describe its services (e.g., “we help kids succeed”), and when pressed for details, cannot or refuses to disclose exactly what services they provide.
o The charity impatiently responds to requests for more information about its services or finances, pressuring you to give without answering all your questions.


HOW CAN DONORS PROTECT THEMSELVES?

Give only when you feel confident. Legitimate charities will accept your donation whenever you are ready. Listen to your instincts; make sure all your questions are answered. Don’t give in to pressure about suggested donations. Legitimate charities appreciate donations of any amount, and will not use high-pressure tactics.

Be cautious about giving to charities that represent that 100% of your contribution will support programs. Today’s costs of operating a charity make it virtually impossible for a charity to direct 100% of your contribution to program activities.

Verify that the charity is properly registered with the IRS to received tax-deductible contributions by calling 1-800-829-5500 or visiting www.irs.gov.

Check out the charity with BBB (Better Business Bureau) by calling 513-421-3015 or visiting www.cincinnati.bbb.org.

Contact the charity directly to verify the accuracy of claims made by its fundraiser or telemarketer. Legitimate charities understand that you are contributing your hard-earned money, so they will be willing to assist you by providing as much information as possible about their charity.

Be wary of every opportunity that presents itself – especially when it presents itself in the wake of some big disaster that gets a lot of media attention.

If you are familiar with a particular organization, call the charity directly to ensure a campaign is being conducted and the individual at your door is authorized to collect donations on their behalf. Fraudulent ID cards are a common practice for scammers.

Do not give cash. It is unlikely you will be able to recover these funds if stolen. Guard your credit card number. Call the charity directly – get their contact information from the phonebook – to make a contribution using a credit card. Review your billing statement for any suspicious activity, and dispute fraudulent charges with your credit card company as soon as noticed. Never write a check to an individual. Checks should only be made payable to the charity.

The Charity Rating Guide provides information that will help you in your giving decisions. You can also contact the charity in which you’re interested directly to determine if their mission and philosophy match yours.

At the beginning of each year, decide in advance which charities you’ll be supporting, and how much you’ll be donating. This will give you time to do your research and will help you gracefully turn down requests for other contributions.


HOW TO REPORT IF YOU’VE BEEN A VICTIM

Better Business Bureau (BBB): You should also submit a complaint to BBB (513-421-3015 or www.cincinnati.bbb.org) to report the problem and to receive assistance with resolving the dispute.

Ohio Attorney General's office: If you have been the victim of a fraudulent charity, immediately contact the Ohio Attorney General's office (1-800-282-0515 or www.ohioattorneygeneral.gov) to report the crime.

Federal Trade Commission (FTC): Call 1-216-263-3455 to notify the FTC division overseeing charity fraud.

Internet Crime Complaint Center (IC3): If you believe you are the victim of an Internet crime, you may contact the IC3 at www.ic3.gov. The IC3 is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center. Complaints submitted to the IC3 cover an array of cyber crime and fraud schemes.