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Tips For Avoiding Holiday Charity Scams

December 18, 2006
Consumers will be full of the holiday spirit this week, and scammers will exploit that good feeling to siphon off donations meant to support real charities.

To guard against charitable scams, Debra Pankow, Ph.D, assistant professor of child development and family science at North Dakota State University, Fargo, suggests these tips to prevent a Grinch-like surprise in your holiday giving.

• Ask for written information. A legitimate charity will give you information outlining its mission, how your donation will be distributed and proof that your contribution is tax deductible. Ask for identification. Many states require paid fundraisers to identify themselves as such and to name the charity for which they're soliciting.

• Watch out for similar sounding names. Some phony charities use names that sound or look like those of respected, legitimate organizations.

• Call the charity. Find out if the organization is aware of the solicitation and has authorized the use of its name. If not, you may be dealing with a sham solicitor.

• Make your donation go further. The Web site www.charitynavigator.org rates more than 5,000 of the largest charities according to revenue spent on programs and services, as well as financial strength. While it doesn't list smaller organizations, you can get a good sense of the kinds of questions to ask them.

• Be skeptical if someone thanks you for a pledge you don't remember making. Check your records if you have doubts about a pledge you supposedly made.

• Refuse high-pressure appeals. Legitimate charities won't push you to give on the spot.

• Be cautious of charities that offer to send a courier for your donation. Might they be wary of mail fraud charges?

• Be wary of guaranteed sweepstakes winnings in exchange for your contribution.

• Don't send cash. For security and tax record purposes, pay by check. Write the official name of the charity on your check.

• Remember tax deductions and recent rule changes. For complete details on which contributions are eligible within IRS guidelines, go to www.irs.gov/pub/irs-pdf/p526.pdf. Also check with your tax advisor.

• Don't overlook airline miles. Many charities accept frequent flier miles on behalf of their beneficiaries. Look on your favorite airline’s Web site for links to nonprofit organizations that accept their miles.

• Company-matching contributions. Some employers will match a portion of your donations to IRS-approved nonprofit organizations or educational institutions. This is a great way to get more out of your charitable buck. Check with your human resources department to see if this is offered at your company.

• Donate your time. Last year, Americans gave a record $260 billion in charitable contributions. But millions of people also contributed precious personal time by staffing homeless shelters, reading to children and countless other causes.

• Involve your family. "It's never too early to teach your children the value of generosity," says Pankow. "Maybe that means asking them to donate gently used toys to a children's hospital, or mow the lawn or shovel snow for an elderly neighbor."

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