False Charities – Profiting on Disaster and Public Sympathy
Charitable organizations deserve our support and play a vital role in our communities. However, not all organizations are honorable and there are a lot of scams out there. Unfortunately, it is sometimes not easy to distinguish between the legitimate fund raisers and the crooks.
Con artists play on our sympathy and generosity. Their scams take money away from those who need help the most. They also generate negativity in the public about legitimate charities. This is perhaps the greatest crime, as many kind-hearted givers then think twice about making donations where it is needed.
In recent times, fraudulent charities have been prolific during tragedies like the September 11 attacks and hurricane Katrina. Crooks see these disasters as an opportunity to rip off well-meaning people. The most common ways to try and steal your money is email, going door-to-door, impersonating volunteers from legitimate organizations, and through the telephone.
Ways to spot a fraudulent charity
- High-pressure sales tactics – No legitimate organization will try to make you feel guilt-ridden and try to force you into immediately sending a contribution.
- Ask how the money will be used and if the organization is audited regularly to show how much really goes to charity. Many fake charities will actually gobble up most of their donations on “administrative expenses.”
- Be suspicious of anyone who insists on cash donations – Cash can be easily moved due to the lack of an audit trail, and you will have no records for yourself.
- Copycats Be wary of organizations that use a name similar to a legitimate charity, or names that are set up to sound like the disaster they are purportedly sending relief for.
- Suspicious address Be very suspicious if a charity’s address isn’t an office or street address and if it does not have an office in your country. One supposed charity who tried scamming us out of money listed a real sounding address. A quick check on Google Maps showed the address to be a patch of rural forest!
- Inappropriate requests Requests to give your credit card, bank account or Social Security number or other personal financial information over the phone are to be considered suspicious. They could be identity thieves attempting to capture your information. If you wish to donate, let them know you will call them back, then look for the charity’s address and phone number in your phone book.
- Email requests Legitimate charities will not send you donation requests through email, unless you contacted them first and allowed them to use your email, usually by either being a member or signing up for their newsletter.
