Lead With Your Head and Heart When Giving This Holiday Season

With holidays and Giving Tuesday around the corner, it’s the time of year when many people choose to give back to support the causes closest to then. Unfortunately, it’s also the time of year when scammers look to exploit your generosity, taking funds away from those in need to line up their own pockets.

Avoiding scammers

This time of year, you’ll likely see an uptick on emails, calls, letters, texts, and social media ads designed to pull at your heart and purse strings. Before handing over your money, know exactly who it is going to, and how it will make the biggest impact.

1. Research the organization
   • Go to trusted sources like the Better Business Bureau’s give.org, Charity Navigator, and GuideStar. These sites look at financial statements, impact, leadership structures, and tax forms to ensure legitimacy.
   • You can also search the charity name online alongside words like “reviews,” “scams” or “complaints” to see if there is any online commentary.
2. Beware of similar but different names
   • Many organizations are household names, and it’s something scammers prey on. Be wary of names that sound close to a charity you know but are different. This is a common tactic and relies on you not doing your homework. If you want to give to the real version of charity, go to the website on your own.
3. Check for legal forms and status
   • Most charities must register with your state or the IRS. This will allow you to verify that your donation is tax-exempt.
4. Donate at Your Pace
   • As more charities do a one-day “Giving Day” or seek to increase Giving Tuesday donations, it can feel like there’s a rush to donate right away. While disasters, emergencies, and these one-day giving focuses may encourage you to give on the spot, a legitimate charity will accept donations at your pace.
5. Payment Options
   • It’s best practice to stick to common methods of payment, check or credit card, as these are easily traceable, can be disputed, and offer a higher level of security. Avoid giving via cash, wire transfers, gift cards, or cryptocurrency.
   • When paying online, check that there is a lock sign next to the “https” in the URL.

Know your Rights

While businesses and telemarketers must comply with the Do Not Call Registry, charities are not under the same rules. However, they can only call between 8 a.m. and 9 p.m., must tell you the name of the charity they represent, and why they are calling. They also cannot call with a prerecorded message unless you are a member or prior donor. If you ask the charity to stop calling you, a legitimate one will comply.

It’s also important to understand what you are donating to. Not every donation is a tax write-off. Donations to individuals and Political Action Committees are not tax deductible. If a charity claims that you will win a prize or a contest if you contribute, that’s illegal and a scam.

If you are scammed

If you think you might be the victim of a fraudulent charity, stop any recurring donations immediately, and dispute the charges to your bank. You should also file a report with the FBI’s Internet Crime Complaint Center or the Federal Trade Commission.

You should also put a fraud alert on your credit report through Equifax, Experian, and TransUnion. Call your bank directly and have them freeze your accounts, get new account numbers, new debit/credit cards, and monitor your account statements for fraudulent charges.