How to avoid charity scams

It’s sad, but true: Whenever catastrophe strikes, scammers are close behind, exploiting people who are scared, in need of help, or looking for ways to pitch in. From 9/11 to the COVID-19 pandemic, Americans have lost billions to con artists following disasters, and their tricks have only grown more sophisticated over the years. So, what charity scams should you look out for? What can you do if you think you’ve encountered one? And how can you donate safely to people in need?

Common charity scams

Many charity scams occur on the heels of devastation. After a high-profile flood or destructive hurricane, for example, scammers create fake organizations and solicit donations by targeting people via email, over the phone, or by mail. They claim donated money will go towards a good cause, such as emergency supplies or rebuilding homes. Instead, the scammers pocket the money for themselves.

Crowdfunding charity scams have also become more prevalent in recent years. Rather than target specific individuals, these schemes work by collecting many small donations from a large group of people online. It goes like this: A scammer will hear about a tragedy, like a serious illness or an apartment building fire. Then they’ll create a crowdfunding page posing as someone who can help the victims. Once the donations are in, they’ll close the site and walk away with the money.

Charity scams commonly occur during the holidays, as well, since many people are more willing to donate.

Who’s at risk for charity scams?

Older adults are popular targets for these criminals. “Many have significant investments, cash savings and other assets as compared to younger generations,” says says Laurie Styron, Executive Director of nonprofit charity watchdog CharityWatch. “And depending on their age, their mental acuity may be in decline.” Plus, many older people are deferential to authority, she explains, which can make them more vulnerable to being exploited.

Everyone is susceptible, however—even 20- and 30-year-olds. “Increasingly, younger generations are scammed on social media platforms by giving impulsively without researching first to understand if the charity asking for funds is legitimate or operates efficiently,” Styron says.

What to do if you suspect a scam

So, what if you’re targeted by a scammer? How can you identify a scam, and what should you do next?

“The best way to avoid an outright scammer is to never give on the spot under pressure,” says Styron. Scammers will often use sob stories to pressure you for donations, and rushed, in-the-moment giving decisions can lead to wasted money.

“People may never find out that their donation was not used as advertised or was given to a nonexistent charity,” she explains.

In general, you shouldn’t donate money to any person or organization you don’t know—especially if they reach out to you first. Never give your personal or financial information, either, including your address, birthdate, Social Security number, bank account data or credit card number.

Understand that federal agencies—including the CDC, IRS, SSA and Medicare—do not ask for donations from the public. Ignore communication that says you have to “sign up” or give additional personal information to receive money from them.

Scammers may try different tactics, too, depending on the way they reach out to you. So, make sure you take these precautions:

Phone calls

Avoid answering calls from unfamiliar or suspicious numbers. If you do answer and it’s a robocall, hang up. Don’t hesitate, and don’t press any requested numbers. Just ditch the call.

What if a real person representing an unfamiliar organization calls you? Whether they claim to be fundraising for a charity or ask you to invest in pharmaceutical stocks, ignore any requests to give money on the spot. If you’re interested in learning more, take their information and do a little research online. (More on that below). You can always donate later if the organization turns out to be legitimate.

Texts and emails

Don’t open or respond to messages from an unknown person or organization—and avoid clicking on links and attachments. If a random text asks you to reply “STOP” to prevent future messages, skip it; crooks often use this method to pinpoint active phone numbers.

If you receive a suspicious email, watch for grammar and spelling errors, a generic greeting, or a strange sender email address; all are signs of a scam. Delete emails that request your personal information or insist you act right now. To be safe, make sure the anti-malware programs on your computer are updated, too.

Mail

Sometimes, scammers reach out by mail. They may send a request for donations, for example, or you may receive papers that appear to be important government documents. Before replying—and especially before sending money—stop and research the group sending the mail. Occasionally, an organization may be legitimate. It may just be a name you don’t recognize. But if you believe it to be a scam, report it to the U.S. Postal Inspection Service.

Online crowdfunding

Popular crowdfunding websites like GoFundMe and Kickstarter have taken precautions to protect people who donate. But you should still take steps to safeguard yourself. If you’d like to donate to a GoFundMe or other individual fundraiser, make sure you can verify the cause is legitimate. In these cases, it may be best to know the affected person or the fundraising party personally. Avoid giving to unknown individuals you see on social media.

How to donate to charity without getting scammed

So, how can you donate money without putting your money and personal information at risk?

Styron suggests first seeking charities that are important to you, then researching how they use the money “and donating generously if you can.” While any donation will be appreciated, your cash will go further if you give a larger amount to a single, efficient nonprofit rather than make smaller donations to lots of different charities—which can cause more of your money to be lost to overhead costs.

During your research, check out watchdog websites, like Charity Navigator or CharityWatch, for nonprofits with good reviews. You may want to focus on a particular type of charity, such as food bank organizations like Feeding America, Meals on Wheels and World Central Kitchen.

Beware of charities with copycat names, or names that sound very similar to renowned nonprofits. Scammers often use soundalikes to confuse consumers. In one 2015 case, state attorney generals and the Federal Trade Commission sued four legitimate-sounding cancer charities—Cancer Fund of America, Children’s Cancer Fund of America, Cancer Support Services and The Breast Cancer Society—for defrauding people out of $187 million.

When you make a donation, use a check or credit card—never cash, gift cards, or a wire transfer, because payments cannot be stopped or traced once they’re initiated. Avoid contributing goods unless a charity specifically asks for them. Though donating gently used clothes, furniture, or household items is sometimes helpful during normal times, it can create delays and extra costs for charities.

Finally, if you suspect a scam, report it right away. Reach out to your state attorney general or secretary of state, or file a complaint with the Federal Trade Commission via their official website or by calling 1-877-382-4357. You can also get in touch with a charity watchdog website or the Better Business Bureau to report your experience.

Ultimately, by keeping an eye out and doing a little research, you can keep yourself, your family and your savings safe from scams—and still do your part for those hurting, too.