Don’t get scammed by phony charities

While the holiday season is one that’s synonymous with giving, such an openness to giving lends itself to a different type of spirit altogether, one that preys on good intentions and leaves many victims in its wake. Such a spirit is the spirit of scamming, something that has become nearly as prevalent around the holidays as candy canes and Christmas specials.

With many people choosing the holiday season as their time to make charitable donations, fake charities and scam artists seemingly come out of the woodwork, making choosing a charity a difficult proposition. Though some noteworthy steps have been taken to make assuring a charity’s legitimacy a lot easier, there are still loopholes and old tricks that cheat both the donor and the people most in need of his or her donation.

One of the most common gift-giving scams is creating a look-alike charity, those that resonate immediately with potential donors because their names are similar to more wellknown, legitimate charities. A wonderful way of learning whether or not a charity is genuine is to check with the Better Business Bureau (BBB), whose website goes into great detail about its standards for rating charities while also providing a detailed listing of several hundred charities it has rated.

Thanks in part to a number of donation scams that propped up in the wake of September 11, the BBB now allows for approved charities to use its seal as a way for assuring potential donors of a charity’s legitimacy. Usage of the seal calls for periodic renewals as well, meaning a charity must repeatedly qualify under the BBB’s standards to maintain usage of the seal. While many charities take advantage of this relatively recent change in policy by the BBB, laws do not mandate that a charity use the seal, meaning potential donors should not instantly assume a charity is a scam simply because it does not use the BBB seal.

As mentioned earlier, the events surrounding September 11 brought a number of scam artists out of the woodwork, many of whom used the

tragic events as a means to set up fake charities (many claimed to be benefitting the families of deceased policemen and firefighters). That said, before donating to any charity, potential donors must be especially wary of any charities that claim to be linked to any recent major tragedy. While many such charities are legitimate, unfortunately many are nothing more than scams. If September 11 was any indication, Hurricane Katrina and the resulting destruction of New Orleans will, no doubt, beget similar scams.

Scams may likely surface in the form of e-mail campaigns. With email quickly moving to the forefront as a means for communication, nearly every American is susceptible to e-mail scams, making such scams far more lucrative (not to mention less time consuming) than door-todoor or snail mail solicitations.

While the Internet has developed into a valuable tool for scam artists, it also can be a valuable tool for potential donors. Web sites such as www.give.org and www.charitynavigator.org offer easily accessible tips and advice on the best ways to assure a charity’s legitimacy. With some simple research, you can quickly learn a charity’s contact information and mission statement.

If, in the wake of a recent tragedy, you’re faced with a door-todoor solicitor and don’t have the opportunity to verify any questions you might have on the Internet, always ask what percentage of the donation goes directly to the cause. If the charity is indeed aimed at relieving some of the ills associated with recent disasters such as Hurricane Katrina, the solicitor will most assuredly know off the top of his head the exact percentage (as you likely will not be the first, or last, person to ask that question). If not, take the name, address and phone number of the charity, and then call and inquire as to the charity’s current campaign. The BBB also issues registration numbers to all approved charities, so ask for a charity’s registration number and then cross reference it with the BBB.

While doing research can take some time, it is important to not feel pressured into donating too quickly. Though many feel a heightened need to donate during the holidays, donating too hastily can lead to a donation making it into the wrong hands, turning a good intention into a bad result. Surveys have shown that nearly half of all charitable donations are made during the holiday season, so being a little reserved about making your donation before looking into it might extend your donation a few extra days or weeks, but will likely not have an adverse effect on the charity to which you are donating.

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