Tag Archives: Charity Navigator

Avoiding Charity Scams

I sometimes repeat myself, and occasionally I’ll say something I’ve said before, too. But even if you’ve read or heard about charity scams before, it never hurts to have a quick reminder. It’s already November, and charitable giving comes up a lot this time of year.

I’ll keep it short: decide in advance which charitable organizations you wish to support instead of waiting for others to approach you. If you’re looking for a new cause, research before you donate.

When you already know whom you’re giving to, it makes it much easier to turn down those who call or email out of the blue because you won’t feel pressured. You can explain to callers that you’ve already done your giving for the year (and you can just ignore emails—I would hesitate to trust an out-of-the-blue request via email).

If you’re checking out a new charity, the go-to resource is CharityNavigator.org. This website tells you how much a charity spends on marketing and how much money makes it into their programs, gives executive salaries and other financial information, as well as an overall rating of the organization. No mainstream charity manages to have 0% operating expenses, but if you see one that devotes 99.5% of its revenue to salaries and marketing, with only 0.5% going toward programs, you know it’s one to avoid.

T’is the season

This time of year, a lot of people are thinking about ways to help those who are less fortunate.

Some like to volunteer directly, others donate goods, and many like to give money to charitable organizations.

If you fall into that last category, this is your annual reminder: always look into a charity before you give them money. There are people out there who take advantage of others’ goodwill, and sometimes they set up elaborate schemes to siphon funds meant for other purposes.

If you’re unfamiliar with an organization, one of the best places to start is Charity Navigator.  There you can find out how much of a charity’s income it actually spends on its programs, how much it spends on fundraising, and more. Quick tip: if it spends 3% on programs and over 85% on fundraising, pass on making a contribution. All charities have some operating expenses, but that’s just beyond the pale.

I’m leery of charities that make cold calls. I used to get one all the time from an alleged charity that had something to do with police officers. I forget which one, so I won’t try to guess, but I recall the people on the phone would routinely imply that they themselves were actual officers. They weren’t. I never donated a cent because the whole operation sounded shady to me. Later I found out their operating expenses, including fundraising, executive salaries and administrative costs, took up something like 98% of their income. The other 2% went to whatever the charity claimed to do (they were vague about this as well). Maybe there are good charities that make cold calls, but I’ve never been contacted by one, so make sure you check them out before you donate a dime.

I believe the best way to avoid charity scams is to decide in advance who is getting your donations each year, and contact the organization(s) yourself. Pick your favorites, find out how to get in touch, and give whatever you are able.

They’ll be thrilled to take that call. I guarantee it.

Holiday reminder: beware of charity scams

The holiday season is a time when many people think about ways to help those in need. However, scam artists have been known to exploit this tendency and set up fraudulent charities to skim money from generous people.

Never give money or personal information to a person who calls, emails or approaches you out of the blue. If you receive a request to donate, research the charity before you respond. www.bbb.org and www.charitynavigator.org are a great place to start.

Beware of charities with names that are similar to well-known organizations, and never make a check out to an individual. Also never make a check out to “CAS,” no matter what “CAS” allegedly stands for; a crook has simply to add an “H” and they’ve got a check from you made out to “CASH.”

Better yet, decide now which charities you’d like to support, and make your donation early. When asked to donate to others, politely explain that you’ve completed your budgeted giving for the year.

T’is the season for another article about charity scams

To many people, this time of year is synonymous with “giving.”

It’s a season that brings out the best in us; we give thanks, we give gifts, and we give to those who are less fortunate than we.

However, it’s also a season that brings out the worst in others. They know a lot of people are in a giving sort of mood, and they take advantage of it. It seems like for every charity providing money and services to those in need, there is at least one organization whose primary mission is to line its own pockets. So how do you avoid charity scams during the holidays and throughout the year?

One of the best ways to give is to simply decide ahead of time which organizations you’re donating to this year, and make your contribution by contacting them directly. When a representative of another charity approaches or calls, simply explain that you’ve already made your contributions for the year. Many people give in this way, so they should be polite and accept your answer. A rude or hostile response is a sign of a charity that isn’t on the up-and-up.

You can also donate something other than money. Clothing and food are always popular items, or you can choose to help out where it is needed. Ask around—I can guarantee somebody needs you somewhere. Plus, donations of time and effort can be more rewarding than monetary giving, as they can bring new experiences and face-to-face contact with the people you’re helping.

Be wary of charities that contact you by email, unless you’ve given in the past and provided this information. Unsolicited email is always pretty sketchy to begin with; clicking on a link and providing credit card or other information can lead you straight into identity theft. However, if you gave to an organization before and provided your email, they may use it to contact you in the future, since it saves money on postage.

If someone approaches you in person or calls, be sure to ask what percentage of funds goes to the people the charity serves. A legitimate charity should expect this question and equip its callers, whether volunteers or paid employees, to answer it truthfully. The question is almost a litmus test in itself—every organization has operating expenses, so an answer like “100%” probably isn’t true, and as always a hostile or evasive response is a sign of a crooked charity. Ask for information to be sent to you, or ask for a website address, because you’re not going to give your credit card information to someone over the phone no matter who they claim to be, are you?

Donating by check is better than cash, because it gives you a way to track your donation. However, writing a check also puts your checking account number into someone else’s hands. If you trust the organization, that’s your call to make, but for an extra level of safety a cashier’s check is even better—even a legitimate charity can misplace a check or have its office burglarized. Finally, when it comes to checks, always make the check out to the charity, not an individual, and never trust anyone who tries to get you to make a check out to “CAS,” no matter what the initials supposedly stand for. All a thief has to do is add an “H” and they’ve got a check, from you, made out to “CASH.”

Do your homework before you give a single dime to anyone. Check out charities with the Better Business Bureau or Charity Navigator. Don’t assume that nonprofit status means anything, since crooked charities hide behind this designation. Finally, pay attention to the name of the charity—the difference between “Foundation” and “Fund” can be the difference between helping those in need and helping a thief buy a spare Jaguar.