SHARE: Give Wisely
Across the nation, 65% of households give to charity. When natural disasters devastate our communities or people around the world face humanitarian emergencies, Americans are always ready to help others in need. According to a report by ABC News, only five days after the earthquake devastated Haiti last year, Americans had donated $92 million to the Red Cross for relief efforts. It is not surprising then that within a few hours after the recent tragedy in Japan, cyber criminals had set up fake Web sites to fool people and steal their money. To ensure your hard earned money goes where it can do the most good, follow these ten tips to give wisely.
Give to charities you recognize or to those you have given to before. Other charities may be legitimate but may not have the means to offer the best assistance. Watch out for charities with names similar to well-known organizations.
Identify who is asking for your donation. Many states require paid fund-raisers to identify themselves and their charity when asking for money in person.
Verify the organization is real. You can check to see if it is registered in your state through the National Association of State Charity Officials.
Ensure you are giving directly to the charity. People who solicit funds on behalf of a charity keep a portion of the money to cover their costs so less goes the actual cause. Ask if the caller is a paid fundraiser, who they work for, and the percentage of your donation that will go to the charity.
Withstand any pressure to make the donation immediately if you are unsure, and don’t fall for the promises of winning a sweepstakes. According to U.S. law, you never have to give a donation to be eligible to win a sweepstakes.
Internet giving is targeted by thieves too. Look in the browser bar of the site’s address for “https” because the “s” stands for secure. Beware of pop-up screens since phishing sites are using pop-ups to capture personal information and cyber crooks can create unauthorized pop-ups on legitimate sites.
Safeguard your personal information such as Social Security, bank account and credit card numbers from anyone who asks for a contribution from you. Con artists will use this information to steal your identity or commit fraud.
Every payment method is not the same. Never give or send cash. To be sure the money gets where you want it to go and to have a record for your taxes, contribute by check, credit card or online. When donating by check, make it payable to the official name of the charity.
Learn the difference between “tax exempt,” which means the organization doesn’t pay taxes and “tax deductible,” which means you can deduct your contribution on your federal income tax return.
Yell out and report fraud to stop the crooks from approaching others. Report suspicious charitable appeals relating to national disasters to the National Center for Disaster Fraud www.fraud.org or by calling (866) 720-5721. If you suspect a web site or email of being fraudulent, contact the FBI’s Internet Crime Complaint Center at www.ic3.gov. Report other fraudulent charitable schemes to the Federal Trade Commission at www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357).
