By John Matuszak
Around the holidays, and other times when there is an urgent need, greedy people come out of the woodwork to steal the spirit of generosity.
“The Grinch wouldn’t do the things these people do,” Ohio Attorney General Dave Yost says of scammers who set up phony charities to take advantage of unselfish and unwitting donors.
It’s a growing problem in Ohio and across the country, costing citizens and legitimate charities billions of dollars.
The Ohio Attorney General’s office takes this threat seriously. Its charity law division, along with investigating crooked schemes and suing bad charities, maintains an extensive website with registered philanthropic organizations and tips on how to avoid being duped.
Yost says con artists adapt their tactics to pull on people’s heartstrings and loosen their purse strings. Complaints about bogus charities spiked during the COVID-19 pandemic, and unscrupulous solicitations surge during wars, hurricanes and other disasters.
The holiday season is also ripe for rip-offs.
“People are more generous at Christmas time, and the scammers know that,” Yost says.
Giver Beware
Tech-savvy younger people account for a larger percentage of the victims of financial scams than older citizens. But those 60 and older, with more assets, pay a larger penalty, losing over $9,000 on average, compared to around $2,700 lost by people in their 20s, according to a Federal Trade Commission report.
For older adults at the end of their earning years, “There is no reset button” when they take a big hit, Yost notes. “They will be poor for the rest of their lives.”
In addition to the dollars lost, scammers erode public trust in actual charities, studies show. Fortunately, common-sense tips can help anyone avoid becoming a victim.
Like other predators, scam artists camouflage their intentions by adopting names that sound like real charities. If you get an unsolicited contact, call back later and check out the group’s website to learn if it’s legitimate.
High-pressure tactics to donate right away, and a hesitancy or inability to answer questions, are additional red flags. Look out if the solicitor wants to pick up the donation in person, or wants a check written in their name.
Yost recommends avoiding solicitations for gift cards, which is a popular scam. If you do give, it is best to donate via a credit card or check, which can be traced, he says. As with any telephone or online solicitation, never give bank or credit card information.
It is a good idea to create a yearly giving plan to well-researched charities, rather than succumbing to spur-of-the-moment pitches.
The AG website includes a list of registered charities and annual reports on those who use professional solicitors, as well as the revenue promised to each cause.
The site offers a Wise Donor card with tips on avoiding scams, along with links to the IRS and watchdog groups. Yost encourages people to take a “hear something, say something” approach to questionable practices, even if you didn’t lose money. Filing a complaint allows his office to keep track of possible scams.
Being smart about charitable donations doesn’t mean being stingy or cold-hearted, Yost says. It means making sure that your compassion and generosity help those who really need it.
Find worthy charities and avoid scams at:
- charitable.ohioago.gov/Research-Charities/Good-Giving-Guidelines
- charitynavigator.com
- Better Business Bureau’s give.org
