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It is the season of giving! You’ve likely heard the ringing of the Salvation Army bell outside your local grocery store and have received mail asking for your financial support. While you seek to make a positive impact on individuals, be mindful of the possibility of charity scams this holiday season. Read on for ways to spot red flags and how to research non-profit organizations to make sure they are spending donations ethically.
Charity Scam Red Flags
Scammer organizations are looking to separate you from your money as quickly as possible. Keep an eye out for these situations as they can signal that the charity is a fraud:
- Don’t let anyone rush you to make a donation; applying pressure is a scammers tactic.
- Don’t rely on caller ID. Scammers can spoof it so it looks like they are calling locally.
- If the charity’s representative is giving vague answers on where donations are being utilized or refuses to send you any information on the organization, do not proceed with donating.
- The biggest indicator of the charity being a scam is if they ask you to pay via cash, gift cards, or wire transfers. It is recommended to donate using a credit card or check so money can be traced.
Do Your Research and Keep Track
When looking for a charity to donate to, search the organization’s name with the words “complaint”, “review”, “rating”, or “scam” at the end of the search. Additionally, take advantage of platforms like Charity Navigator, BBB Wise Giving Alliance, CharityWatch, and Candid. These organizations offer reports and ratings about how charitable organizations spend donations and conduct business. Make sure to keep track of the amount and organizations where you donate. Review statements to confirm you’re charged only the amount you agreed to contribute.
If you come across a fraudulent charity, report it to the Federal Trade Commission and to the National Association of State Charity Officials (NASCO). If you have additional questions or concerns in regard to charity fraud, please visit your local Chelsea Groton Bank branch or call our Customer Care Department at 860-448-4200.
