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Beware Charity Fraud

Posted By Jim On 06/16/2009 @ 12:15 pm In Philanthropy | 7 Comments

The Federal Trade Commission (FTC) recently sent me some information about some popular charity frauds going around lately.

I personally never respond to a solicitation. It could’ve come in the mail, through a phone call, or an email; I ignore them all. It’s not because I’m a heartless person and it’s not because I don’t trust the solicitation, it’s that I prefer to go directly to the charity. I don’t want to write a personal check and put it in the mail. I don’t want to give any sensitive information across the phone and I certainly don’t trust email, with all the scams and phishing attempts surrounding those. I know the charities we like to support and we generally go directly to their websites to donate.

However, given the tumble the stock market had over the last year, a lot of charities are turning to solicitations to get more donations because their trusts and endowments are hurting. This has opened up an opportunity for scammers and thieves, so the FTC has offered up some good information to help you combat that.

If you recently received a phone call from a “charity” and are considering donating money, I recommend you read the FTC’s Charity Fraud website [3] for tips on how you can protect yourself and the people you’re helping. When you give money to a scammer, it only empowers them to keep on ripping people off. As more people get burned, they start avoiding charities and charities that support the people the scammer said he or she was collecting for. In the end, it’s the people you intended to help that get hurt the most.

I also wanted to spotlight two particularly poignant scams going on right now and how to protect them. The first involves scammers pretending to collect donations to support the troops [4], as in vets, active duty, or their families. The second is the result of an enforcement sweep of scammers that pretended to collect donations for police, firefighters, and veterans [5].

It’s great to help those who are in need, but not if the money is going into the pocket of a scammer.


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[2] Email: mailto:?subject=http://www.bargaineering.com/articles/beware-charity-fraud.html

[3] FTC’s Charity Fraud website: http://www.ftc.gov/charityfraud/

[4] scammers pretending to collect donations to support the troops: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt157.shtm

[5] scammers that pretended to collect donations for police, firefighters, and veterans: http://www.ftc.gov/opa/2009/05/phonycharity.shtm

Thank you for reading!