Protect Your Generosity: How to Spot and Avoid Charity Scams
Protect Your Generosity: How to Spot and Avoid Charity Scams
‘Tis the season of giving, but unfortunately, it’s also prime time for charity scams. While most charitable organizations are legitimate and do wonderful work in our community, fraudsters often exploit people’s generosity during the holidays. We want to help you ensure your donations reach those truly in need.
Common Charity Scams
- Emotional Appeals with High Pressure: Scammers create urgent scenarios demanding immediate donations, often using heart-wrenching stories about sick children or disaster victims.
- Copycat Organizations: Fraudsters use names very similar to well-known charities, hoping you won’t notice the slight difference.
- Holiday-Specific Scams: Watch for fake toy drives, holiday meal programs or “angel tree” schemes that collect money but never deliver on promises.
- Social Media Fundraising: While many legitimate fundraisers exist on social media, scammers frequently create fake campaigns with stolen photos and false stories.
Red Flags That Should Raise Concern
- Demands for specific payment methods, especially wire transfers, gift cards, or cryptocurrency.
- Reluctance to provide detailed information about the charity’s mission and how donations will be used.
- Thank you notes for donations you don’t remember making.
- Promises of guaranteed sweepstakes winnings in exchange for a donation.
- Unsolicited emails containing attachments or links.
Protecting Yourself from Charity Fraud
Before opening your heart and wallet, take these important steps:
- Research the charity through reliable sources like Charity Navigator, GuideStar, or the BBB Wise Giving Alliance
- Verify the organization’s tax-exempt status using the IRS Tax Exempt Organization Search
- Request detailed written information about the charity’s programs and finances
- Never feel pressured to give on the spot – legitimate charities will welcome your donation just as much tomorrow
- Keep records of all donations and review your statements carefully
- When donating online, type the charity’s web address directly rather than clicking links
At Kelly Community Credit Union, we believe in the power of giving back to our community. By staying informed and vigilant, you can ensure your charitable donations make a real difference in the lives of those who need help most.
If you suspect you’ve encountered a charity scam, report it to the FTC at ftc.gov/complaint and let us know. Together, we can protect our community from fraud while supporting the causes that matter most.
Remember: Real charities will never rush you to donate. Take your time, do your research, and give wisely this holiday season.
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