Charity Scams: How to Give Safely This Holiday Season
The weeks before the holidays are a generous time of year. Many of us give to food banks, veterans’ groups, animal shelters and disaster relief. Sadly, scammers know this, and they copy real charities to get a share of your kindness.
This guide explains the warning signs the Federal Trade Commission (FTC) lists, how to check a charity in a few minutes, and the safest ways to give. Giving is still a good thing to do. A little checking just makes sure your money reaches the people you meant to help.
Warning Signs of a Charity Scam
According to the FTC, these are common red flags:
- Pressure to give right now. A real charity will still be glad of your gift tomorrow.
- A request for cash, gift cards or a wire transfer. The FTC says these are how scammers ask you to pay.
- A thank-you for a donation you don’t remember making. This can be a way to get you to pay.
- A local-looking phone number. Scammers can fake caller ID, so a familiar area code proves nothing.
- A name that sounds a lot like a well-known charity. Look-alike names are common.
- Vague, emotional appeals that don’t say how your money will be used.
- A claim that your gift is tax-deductible when it may not be.
- A promise of sweepstakes winnings in return for a donation. The FTC says this is illegal.
How to Check a Charity in Five Minutes
- Search the charity’s name with words like “complaint,” “review,” “rating” or “scam.”
- Look up the charity at the BBB Wise Giving Alliance (give.org) or CharityWatch (charitywatch.org).
- Use the IRS Tax Exempt Organization Search to see whether gifts to the group are tax-deductible.
- Check with your state charity regulator. You can find yours at nasconet.org. Most states require charities and their fundraisers to register.
- If you are giving through a crowdfunding page or social media, confirm who will actually receive the money before you click “donate.”
Safer Ways to Give
- Pay by credit card or check. The FTC describes these as safer than cash, gift cards or wire transfers.
- If someone calls, you can say, “Please send me information in the mail.” Then do your research and give through the charity’s own website, which you type in yourself.
- Keep a record of every gift.
- Check your statements later. Make sure you were charged only the amount you agreed to, and that you did not sign up for a monthly gift by accident.
Be careful with cryptocurrency donations too. The FTC warns that scammers use them. The simplest rule is to skip any request to give in crypto.
What to Say on the Phone
You never have to decide on the spot. Here are a few polite lines you can use:
- “I give through my own list of charities, so I’ll pass today.”
- “Please mail me information. I’ll decide after I look you up.”
- “I’m going to hang up now.” That is always allowed.
If You Think You Gave to a Scam
This can happen to anyone, and there is nothing to be ashamed of. Acting quickly helps.
- Contact your bank or credit card company right away and tell them what happened. Ask whether the payment can be stopped or disputed.
- Report it at ReportFraud.ftc.gov. Include the name of the organization or fundraiser, the phone number and what the caller said.
- Report it to your state charity regulator, too (listed at nasconet.org).
- Watch your accounts over the next few weeks for charges you don’t recognize.
For more steps, see our guide on what to do if you paid a scammer. You can also call the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311) for help with reporting.
Helping a Parent or Friend
If someone you love gets many donation requests, offer to sit with them and look up each group together. Many families choose a short list of charities they trust and give only to those. It makes giving simpler and calmer.
More on Seniors Tips
- Paid a Scammer? What to Do Right Away
- “You’ve Won!” How to Spot Fake Prize, Sweepstakes and Lottery Scams
