Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
Better Business Bureau (BBB®) Wise Giving Alliance wants to be sure consumers donate sensibly this holiday season. The Wise Giving Alliance website at Give.org provides evaluations of nonprofits, offering donors insight into charity trustworthiness. This, in turn, helps consumers make wise decisions to make sure their hard-earned money makes the most charitable impact.
Additionally, unscrupulous charities and scammers also desire to prey upon the good intentions of consumers. Last year, a woman from the Parma area reported to BBB that she received a phone call from a charity scammer. She told BBB, “The caller was difficult to understand. She was requesting a donation for Animal League. She said this was to help the animals and requested donations. I told her I had to think about it.” The caller had the consumer’s name, birthday, and address. The woman told BBB, “I thought it was odd she had all of that information.” The consumer then called the animal shelter she donates to, which has a similar name, and they said they were unaware of the organization.
BBB Serving Greater Cleveland provides additional tips to help donors give wisely and avoid scams.
Start with trust. Charities can demonstrate trustworthiness by agreeing to in-depth evaluations such as the 20 BBB Standards for Charity Accountability. Consumers can get free access to charity reports at Give.org.
Watch out for name similarities. Many charities have similar names. Before you give, be sure you have the exact name of the charity to avoid a case of mistaken identity.
Verify Charity State Registration and Tax Status. In Ohio, charities must register with the attorney general’s office. Consumers can visit the attorney general’s website to verify the charity’s state registration status. You can also check an organization’s charity status with the IRS Tax Exempt Organization Search tool. Remember that not all non-profits are tax-exempt charities.
Review the website carefully. A website for a responsible charity will include information such as its mission statement, programs, and measurable goals. Charities will also typically include information such as a tax identification number or EIN that consumers can use to look up their tax-exempt status and financial reports on the IRS website.
Consider Donations Carefully. Avoid on-the-spot donations. Take time to respond to charity requests and don’t succumb to pressure or emotional appeals.
For more advice on staying safe online this holiday season, go to BBB.org/holiday. You can check out businesses, file a complaint, and submit and read customer reviews at bbb.org. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected]. Have a scam to report? Report it to BBB.org/ScamTracker.
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