With Texas, the U.S. Virgin Islands and now Florida devastated by hurricanes in recent weeks, the call for donations is coming from far and wide. But that could mean scam artists are active, too.
The office of North Carolina Attorney General Josh Stein has tips that can help weed out fake charities from the real thing.
Decide who you want to give to
Don’t respond to solicitations.
Telemarketers, who the AG’s offices warns can be pushy, may keep as much as 90 percent of the money they collect.
“Telemarketers that refuse to answer your questions, offer to pick up your donation or pressure you are usually up to no good,” the website states.
Instead, decide which charities you want to support and initiate contact yourself. Giving to charities you know, have volunteered for or seen in action will tell you how your donation will be used.
Do your homework before giving
There are websites you can visit to check on a charity’s veracity.
- The site www.give.org will tell you if national charities meet the standards set by the Better Business Bureau’s Wise Giving Alliance.
- The site www.charitywatch.org lists ratings of charities compiled by the American Institute of Philanthropy.
- Other sources of information cited by the attorney general’s website are www.guidestar.org and www.charitynavigator.org.
“Some scammers use names that are very close to the names of real charities, non-profits or even law enforcement agencies,” the AG’s site states. “If you want to donate, contact the real charity or organization at a website or phone number you know to be valid.”
Don’t respond to unsolicited emails or text messages asking to give
Unsolicited emails or texts asking for donations, even if they appear to be legitimate, could be phishing scams. These messages may include links to copycat web sites of legitimate charities to try to trick donors.
You should also never give your credit card or bank account number to someone you don’t know who contacts you, for any reason. Banks and credit card companies, as well as the IRS, will know your information and would not contact you asking for you to confirm it in calls that you did not initiate.
“Legitimate fundraisers won’t push you to give on the spot,” the AG’s website states.
Be wary of social networking posts asking for donations
The cause may sound worthy, but the AG’s office notes that you have no way of verifying how your money would really be used.
Are they licensed?
Many charities that solicit in North Carolina are required by law to register with the N.C. Secretary of State. Call that office toll free at (888) 830‑4989 or check out a charity or fundraiser on its website.
Ask for written information
If asked for a donation, ask for the charity’s name. address and phone number. Legitimate charities will have materials that state its mission and what donations would be used for.
Ask how your money will be used
Some charities hire professional fundraisers. These private companies sometimes keep a large percentage of the money raised. You should ask how much of your donation will go to the worthy cause instead of to pay for fundraising. You can also check the charity’s financial statement online at the Secretary of State’s Office, or visit www.guidestar.org.
There is no legal minimum amount that a professional fundraiser has to give to the charity for which it raises money. Likewise, there is no legal minimum amount that a charity has to use for actual good works as opposed to other expenses. But professional fundraisers do have to report the percentage of money they raise that goes to charity, and charities have to report what they spend on charitable works versus expenses on their 990 tax form.
You can get this information from the NC Secretary of State’s Charitable Solicitation Licensing Division.
Is your donation tax deductible?
Not all contributions to non‑profit organizations are tax deductible. Some gifts that appear to be for charity actually benefit for-profit companies. Check it out before you decide to give.
Pay by credit card or check
For security and tax record purposes, pay by credit card. If you pay by check, make it out to the charity itself, not the fundraiser. Also, cash gifts can be lost or stolen.
Protect personal information
The attorney advises that you do not share personal financial information by email, social network or text message. If you donate online, use a secure website. Look for a lock icon and a web address that starts with “https.”
Don’t remember pledging money? Be skeptical
If someone thanks you for a pledge or donation you don’t remember, check your records. Be on the alert for invoices claiming you have made a pledge when you know you haven’t.
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