The holidays are prime time for charity donations. But be careful! Each year, crooks use clever scams to cheat people and steal millions of dollars.
In May, the Federal Trade Commission (FTC) filed a lawsuit against the Cancer Fund of America, the Children’s Cancer Fund of America and the Breast Cancer Society. These charities have been around for years and raise over $200 million. The FTC says a paltry 3 percent of the charities’ donations were spent on cancer patients.
The trouble is when we get a solicitation phone call from an organization like the Children’s Cancer Fund of America, it sounds so legitimate, people just write a check and mail it in.
Sometimes, the scam is closer to home. A few years ago, a 13-year-old girl, along with an older gentleman, asked local business owners to contribute to a Muscular Dystrophy Association bike ride. In exchange, they would receive discounted Cedar Point season passes. It was all a lie. The two pocketed the cash.
Giver Beware
The FTC and Ohio Attorney General websites list dozens of scams related to charitable donations. So what should you do if you want to contribute to a charity? Do your homework. Here are five tips to make sure your money goes to a charity that will use your donation the way YOU want it to be used:
- Research the Charity. If you are not familiar with the charity, you can learn about them and current scams at consumer.ftc.gov and look under the link for charity scams. In Ohio, go to the attorney general’s website, ohioattorneygeneral.gov, and look for the charity registration link.
Those websites also have links to organizations like Charity Navigator, Charity Watch and Guide Star. These provide valuable information about the charities, including how much is spent on the charitable activity versus payroll and other expenses.
Another place to try is the Better Business Bureau Wise Giving Alliance (give.org). The BBB has developed a 20-point rating system of thousands of charities that can give you background on these charities and see if they satisfy the BBB’s standards.
- Get it in Writing. A legitimate charity will send you information about the charity in the mail.
- Ask who is calling. Ask whether the caller is a fundraiser or a volunteer and ask what percentage of the money raised goes to the charity. Some charities have professional fundraisers that wind up with 70 percent or more of the contributions. You may decide that you want to give to the charity but not through the phone solicitation.
- Don’t Provide Credit Card or Bank Information. Don’t share financial information until you’ve checked out the charity. Don’t give cash; checks are better, made payable to the organization, not an individual.
- Consider Designating a Specific Disaster or Fund. This ensures your money is going to a specific disaster or for a purpose you support, not the general fund.
The old phrase, “no good deed goes unpunished” sometimes is true. Don’t give away your money for a good reason to the wrong person. Make sure you take the time to make sure your hard-earned money goes to a real charity and not some scammer’s back pocket.
Laurie G. Steiner is a member of the law firm of Solomon, Steiner & Peck, Ltd. She is a Certified Elder Law Attorney by the National Elder Law Foundation and the Ohio State Bar Association and an accredited attorney for the preparation, presentation and prosecution of claims for veterans benefits before the Department of Veterans Affairs (VA). Laurie has also been named as a Super Lawyer for 2019. She practices in the areas of Elder Law, Medicaid, VA and Disability Planning, and Estate and Trust Planning and Administration.
