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How to Avoid Charity Fraud Scams

How to Avoid Charity Fraud Scams

There are a lot of charities around and a lot of people help them by contributing any amount they can. But did you know that some of them happen to be scams? Yes there are people who do such things so you should know which ones are legitimate.

If a certain charity asks you for a donation, do a background check. You can do this by asking your state or local consumer agency if this charity is registered with them. You should also ask what the charity does and where their proceeds go because they are required by law to file an annual report.

Another way you can check is if the charity is legit is by calling the IRS or internal revenue service. This is because charities are exempt from paying tax and usually given 501(3)c status.

You should be careful when you get an email that asks you to contribute a certain amount because most of these are fraudulent. It is much harder to tell if the charity is fraudulent or not when the criminals who do this use similar names to a well known charity.

Some criminals have even stooped to making a fraudulent charity that is supposed to help police officers and firefighters. There have been incidents where they claim that the money they collect will be used to support the families of those who have died in the line of duty but the truth is that no money goes to them. To be sure, you should contact your local police or fire department and asks if such a charity exists.

There are fraudulent charities that appear when there are natural or manmade disasters. Most people give whatever they can but to be sure, do some checking first.

If you feel like giving something in cash or in kind, make sure that this is given directly to the charity. You can drop this off directly at their nearest office or write a check out to the charity's proper name. They should give you a receipt or a document saying they accepted your contribution. The same goes when you give something through the web.

If you are being pressured to give cash or something in kind immediately, chances are this charity is fraudulent so don't give it to them, report this directly to the proper authorities and give it to a more legitimate charity.

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