The holidays are when many of us give the most, and it’s also when charity scammers are busiest. A few minutes of checking makes sure your money actually reaches the cause you care about.
Check the Charity First
- Search the exact name plus words like “scam,” “complaint” or “review.” Fake charities often use names that sound almost like real ones.
- Look it up with a charity rating group, such as the BBB Wise Giving Alliance or CharityWatch.
- Check tax status with the IRS Tax Exempt Organization Search if you plan to deduct the donation.
- Ask how your money will be used. A real charity can tell you what programs your donation supports.
Red Flags
- Pressure to give right now. Real charities will happily take your donation tomorrow.
- “Thanks for your pledge.” Scammers sometimes thank you for a donation you never promised, hoping you’ll pay anyway.
- Vague, emotional stories with no details about what the charity actually does.
- A phone number that looks local or official. Caller ID can be faked.
How You Pay Matters
If a “charity” asks for payment only by gift card, wire transfer, cryptocurrency or a payment app, it’s very likely a scam. Paying by credit card or check is safer and gives you a record.
Giving Through Crowdfunding or Social Media
- Give to people you know personally when possible.
- Read the crowdfunding site’s policies on how it handles fraud.
- Remember that personal fundraisers usually aren’t tax-deductible.
If You Spot a Scam
Report it to the FTC at ReportFraud.ftc.gov, and to your state’s charity regulator (you can find yours through NASCO at nasconet.org).
The Bottom Line
Slow down, check the charity, and pay by credit card or check. A real charity will still be there after you’ve done your homework.