With so many people donating to charities this time of year, the Pennsylvania Department of Banking and Securities and Pennsylvania Department of State are offering tips to help consumers make sure their contributions are going to legitimate charitable organizations.
“The holiday season is a time many Pennsylvanians will generously support charities and nonprofit organizations through financial contributions,” said Secretary of Banking and Securities Richard Vague. “Unfortunately, there are also many bad actors seeking to prey on this generosity by masquerading as charities while redirecting funds for personal enrichment.”
Red flags of charity scams include:
Similar sounding name: Scammers often use names that sound similar to legitimate charities to intentionally create confusion.
High pressure solicitation: Fraudsters will try to force a hasty decision by turning up the pressure. They may cold call, identifying you as a previous contributor, and asking for your renewed support or to update your credit card information. These attempts rely on catching consumers off guard to extract financial information.
100 percent guarantee: Most people want to ensure that their donations are going toward legitimate program expenses. Every organization has some level of administrative cost, which can include mailing and printing, rent and utilities, staff or fundraising. An organization that promises that 100 percent of your funds are going directly to an individual in need might require additional scrutiny.
Donation by wire transfer or gift card: Legitimate charities will not ask you to make payment via money order or wire transfer. If you are being solicited for a donation and are asked to pay by these means, hang up immediately. A charity may ask for donations of gift cards, such as from a grocery store, to supply someone in need. Never read the information from a gift card over the phone or provide it via email. After verifying the legitimacy of the charity, take any physical gift card donation directly to the location of the charity and request documentation of your contribution.
Tips to help you avoid being the victim of a charity scam include:
Always research before giving: Visit charities.pa.gov to verify an organization’s basic financial information about expenses for program services, fundraising and management; check to see if an organization has been subject to corrective action by the Department of State’s Bureau of Corporations and Charitable Organizations; check whether an organization is registered with the Internal Revenue Service as a Tax Exempt Organization at apps.irs.gov/app/eos; check groups such as the BBB Wise Giving Alliance, Charity Navigator and CharityWatch, which offer information and ratings about charitable organizations.
Don’t feel pressured to make a donation on the spot: Take time to do research before sharing your money or information.
Check websites closely: Charity scams can be vehicles for identity theft by directing victims to fake charity websites where personal and financial information are taken for nefarious purposes.
Avoid wire transfer or money order donations: Any requests for these kinds of payments should be approached with caution.
Direct your payment to the charity: Never make a check payable to an individual; write the check to the verified organization.
If you’ve been the victim of a charity scam, contact the Department of State’s Division of Charities Investigation Unit/Audits at [email protected] or use the online complaint form. You should also file a report with the Federal Trade Commission at ReportFraud.ftc.gov and contact local law enforcement through non-emergency channels.
Anyone can contact DoBS at 1-800-PA-BANKS or 1-800-722-2657 to ask questions or file complaints about financial transactions, companies or products.
