Charitable Donation Scams: How To Protect Yourself This Holiday Season

Scammers exploit the holiday season because it's a time when people are more generous and willing to donate to causes they care about. This creates an opportunity for fraudulent charities to take advantage of unsuspecting donors.

Q: How much money is lost to charitable scams annually?

A: According to the Better Business Bureau (BBB), while Americans donated approximately $374 billion to charities this year, over $10 billion was lost to fraudulent scams.

Q: What tactics do scammers use to trick people?

A: Scammers often create fake charities with names similar to legitimate organizations. They tend to focus on causes that evoke strong emotions, such as veteran organizations or cancer awareness, to lure donations.

Q: What steps can I take to ensure my donation is going to a legitimate charity?

1. Research the Charity: Look up the organization on reputable websites like the BBB Wise Giving Alliance or Charity Navigator.
2. Verify the Name: Be cautious of charities with names that sound similar to well-known organizations.
3. Avoid Sharing Excess Personal Information: Legitimate charities will only need your name, address, and payment information to process your donation and provide a tax receipt.

Q: What personal information should I avoid sharing with charities?

A: Do not share sensitive details such as your Social Security number or extensive personal information. Legitimate organizations typically do not request these details.

Q: What should I do if I suspect I’ve fallen victim to a charitable donation scam?

1. Contact your financial institution immediately to report the fraud and secure your accounts.
2. File a report with the Better Business Bureau to help track and address the scam.

Additional Resources

When it comes to giving, a little research goes a long way in ensuring your generosity makes the impact you intend.

Visit the Better Business Bureau's website to verify whether your chosen charity is trustworthy HERE.