At one time, if you were approached and asked for a donation to help a nonprofit charity, then you may very well have given it with no questions asked. Unfortunately today, there are some unscrupulous people who only pretend to be working with one; so unless you personally know the person and the charity then it is a good idea to check it out before giving. One way to find out is to go to the IRS website, locate the charities listing and see if that particular one is on their legitimate list.
Charity scams seem to proliferate after any type of natural disaster, such as the hurricanes, fires or floods. You may believe that you are going to donate to a particular organization or charity when in reality the money goes to some rather unscrupulous individuals. Setting up a fake one is not all that difficult and in some cases it is just down right easy. So, what should you look for when you are contacted by local community foundations that may help tip you off?
When you are being contacted by telephone and asked to donate to charity, do not give anyone your payment information over the phone. When you are given the name of the charity, write it down and check it out. As well, scammers will use names that are very similar to legitimate nonprofit charity organizations.
For example, they may use the National Cancer Society instead of the American Cancer Society. Also, if the "pitch" uses a great deal of emotional words or images, then it is likely to be a scam, as most charities do not get that detailed.
There are some other things that you should watch out for when dealing with someone soliciting funds for a non profit organization and may include checking with the Better Business Bureau to see if there have been any reports filed. Do not give in to pressure or any type of hard sell tactics. If the individual is pressuring you to give money immediately, then you need to be even more suspicious.
Perhaps one of the best things to go by is your instinct. If you feel something just isn't right, then there is a good chance you are right. Also, if a nonprofit charity only accepts payments through an online processor like PayPal and the only form of address given is a PO Box, then you may want to check them out further. A reputable one has no problem with giving out a physical street address and telephone number to anyone who donates to their charity.
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