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Tips for Ohio Consumers: How to Avoid Charity Fraud Over the Holidays

Individuals in the United States give over $225 billion a year in charitable donations, according to an Oct. 20 USNews.com post. As reported by The Community News in a Nov. 23 article, between $20 and $40 billion of that ends up in the hands of scam artists. Charity scams are particularly prevalent during the holidays, when more people are in gift-giving moods and many have end-of-the-year taxes in mind.
The FBI warns: "There is more giving during the holidays overall and just about any cause can be exploited. So be crime smart-don't give unless you're really sure about who you're giving to."

So how do you avoid falling prey to a charity scam?

1. Check it out. "Ask a lot of questions and get information in writing if you're not sure about a charity. If you get fuzzy or unsatisfying answers about the charity, its fundraising activities, and the tax-deductibility of donations, think about taking your money elsewhere," says the FBI.

2. Verify the Information. Check the name, address, and phone number of the charity against the information held by the IRS, which keeps an updated list of legitimate charities on its website. You can also verify the charity's reputation and information through the Better Business Bureau's Wise Giving Alliance website: www.give.org.

3. Make sure you are giving to the right charity. Many charities have similar names, which can be confusing when you're ready to give. Make sure the charity you researched and verified is the one to which you write the check.

4. Watch out for "overnight" charities. The Federal Trade Commission warns givers: "Charities that spring up overnight, especially those that involve current events like natural disasters, or those that claim to be for police officers, veterans, or firefighters probably don't have the infrastructure to get your donations to the affected area or people."

5. Do not donate cash. Cash is difficult to trace and difficult to prove you have paid if something goes wrong. Legitimate charities should not ask you to donate cash.

6. Protect Yourself. Do not give out your personal information to any one who you did not contact. And, say "no" to high-pressure tactics.

Follow these tips and you should be safe to donate without worry. If you do know of a scam, you should report the fake charity. "Contact the Federal Trade Commission toll-free at (877) FTC-HELP... By stepping forward, you can help put these scam artists out of business," says the FBI.

About our law firm:

The Ohio-based law firm of Meyer Wilson represents clients who have been harmed by investment fraud. Contact us toll-free at 1.866.827.6537 for more information.

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