Charity Scams

With the flooding ravaging Missouri and eastern Kentucky and fires continuing to rage in California, scammers are trying to take advantage of victims by stealing their money and personal information. Some criminals have even continued to haunt victims after they've gotten back on their feet.

The Federal Trade Commission (FTC) says there are three primary targets of the scammers: people who may be looking for government assistance to rebuild their homes and businesses, people who need help removing debris, and those who want to donate money to disaster victims.

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The agency offered several tips to current disaster victims and anyone else who might face schemes like these in the future. They include:

Be skeptical of anyone promising immediate clean-up and repairs. Some scammers may quote outrageous prices, demand payment up front, or lack the skills needed.

Check them out. FTC officials say scammers have been known to pose as companies that can help clean up debris or repair essential processes in a home like an HVAC system. “Before you pay, ask for IDs, licenses, and proof of insurance. Don’t believe any promises that aren’t in writing,” said FTC official Gema de las Heras.

Look out for rental listing scams. Victims of floods and fires often need someplace to live while they’re rebuilding or waiting for the situation to improve enough that they can return to their homes. The FTC says to steer clear of anyone who tells you to wire money or ask for security deposits or rent before you’ve met or signed a lease.

Never pay by wire transfer, gift card, cryptocurrency, or cash. Using one of these methods to pay someone could be a win-lose of epic proportions for consumers. “Scammers ask for these types of payments because, once they’ve collected the money, it’s almost impossible for you to get it back,” warned de las Heras. “And never make the final payment until the work is done and you’re satisfied.”

Guard your personal information. Only scammers will say they’re a government official and then demand money, credit card information, bank account information, or your Social Security number.

Know that FEMA doesn’t charge application fees. Government agencies don’t charge “application fees.” If someone wants money to help you qualify for FEMA funds, the likelihood of it being a scam is high.

Spot disaster-related charity scams. While crowdfunding sites like GoFundMe offer tips on how to prevent being ripped off by a donation scammer, the better bet might be to use the online databases of organizations that can help you research the validity of a charity.

Here are four organizations that offer reports and ratings about how charitable organizations spend donations and how they conduct business:

• BBB Wise Giving Alliance

• Charity Navigator

• CharityWatch

• Candid

For those who anticipate that their donation will be tax-deductible, the only way to guarantee that is by using the IRS’s Tax Exempt Organization Search. By entering a few details about the organization, the IRS will tell you if it qualifies.

It may seem redundant, but taking extra steps to search for an organization via the state charity regulators at nasconet.org could help verify if an organization is registered to ask for donations.

ShelterLogic Group of Watertown, Conn., is recalling about 786,000 RIO-branded swinging hammock chairs.

Improper insertion of the pins provided for assembly can cause the chair’s legs to collapse, posing an injury hazard.

The firm has received 24 reports of incidents that resulted in injuries such as bruises, aches, and pains; head lacerations; back strain; concussions; and abrasions from consumers who fell while using the chairs.

The folding chairs have a black or gray metal frame, a fabric seat, and a backrest with a pillow; some have a drink holder. They were sold in gray, navy, blue, red, and camouflage. RIO is printed below the pillow. Only chairs with warning tags on the back of the chair’s backrest or armrest are included in this recall.

The chairs, which were manufactured in China, were sold at Blain’s Farm & Fleet, Camping World, Costco, Lowe’s, and Tractor Supply Company stores nationwide and online at Amazon.com, CampingWorld.com, Costco.com, Lowes.com, Walmart.com, and other websites from January 2020, through June 2022, for between $40 and $60.

What to do

Consumers should immediately stop using the recalled chairs until they have reviewed the new instructions and the pins are properly inserted into the chair’s legs.

Consumers should contact ShelterLogic Group to receive the new instructions that will help verify proper and safe pin insertion.

Consumers may contact ShelterLogic toll-free at (888) 635-3359 from 9 a.m. to 5 p.m. (ET) Monday through Friday, by email at RIOcare@shelterlogic.com, or online for more information.

People around the world are continuing to support Ukraine as its conflict with Russia enters its second month. Unfortunately, scammers are still taking advantage of consumers who are making charitable donations to those in the country who have been affected.

New data from email security company Tessian shows that the number of new online domains containing “Ukraine” registered this year has increased by 210%. Scammers are also getting more aggressive in masquerading as legitimate organizations. 

Early on, scammers seemed to be content with domain names like “supportukraine[dot]services,” but Tessian says the bad actors are now impersonating honest organizations like UNICEF or the Red Cross.

The researchers told ConsumerAffairs that some fraudsters are also leveraging a fraudulent QR code to compel victims into sending cryptocurrency payments. As the use of QR codes has exploded in ads and signage, scammers have moved to use them to trick consumers into accessing a fraudulent site.

How to protect yourself

Tessian offered some recommended actions that people can take to avoid being scammed:

Be on the lookout for charities that ask for donations made in cryptocurrency. “Some charities do and are accepting cryptocurrency donations,” Charles Brook, Threat Intelligence Specialist at Tessian, told ConsumerAffairs. “But be cautious of any emails purporting to aid or receive donations in an effort to support the humanitarian effort in Ukraine. If cryptocurrency is requested from an unsolicited email then the likelihood is that it is a scam.”

Where is that email coming from? “Before interacting with any Ukrainian themed email received, check the source and email header to confirm the organization it originated from is legitimate,” Brook advises.

Go direct. If you want to make a donation in support of Ukraine, Tessian says the best way is to go directly to your preferred charitable organization. Consumers who want to verify that the charity they're giving to is legitimate can use Candid or CharityNavigator.

Out of the goodness of their hearts, people around the world are supporting the people of Ukraine as the country's war against Russia drags on. Some are doing that by making monetary donations, but doing so can be risky.

When people look for ways to give, the emails they receive, social media posts they read, or the search results they find are pockmarked with scammers trying to siphon off donations into their own pockets.

The scams are your typical bleeding heart cons dressed up in the blue and yellow colors of the Ukrainian flag and adorned with official-looking logos. When ConsumerAffairs ran a sample “I want to make a donation to Ukraine” search online, we found 927,000 results. Needless to say, it’s doubtful all of those are legitimate.

The Ukrainian Airbnb scam

Shortly after the Russian invasion of Ukraine, a rather ingenious idea popped up in which people booked stays at Airbnb locations in places like Kiev to get money directly into Ukrainian bank accounts. But rather than actually going there, kind-hearted souls left the Airbnb hosts a note saying they wouldn’t actually be coming and they should use the money as their version of humanitarian aid. Unfortunately, that good intention went bad.

“While the Airbnb donation program is a wonderful idea and has been helpful, due to ghost listings and scammer exploitation, Airbnb has cracked down considerably which has inhibited the flow of funds to those in need,” Adam Levin, former Director of Consumer Affairs for the State of New Jersey and author of the security manifesto Swiped, told ConsumerAffairs. 

Levin doesn't say just skip the Airbnb idea altogether -- just be careful.

“If you are still inclined to give through the Airbnb network, confirm that the listing has been established over time,” Levin suggested. "[But] be suspicious of multiple listings, it could be a company trying to profit from the outpouring of support rather than a family in need.”

Other new scam twists to be aware of

As scammers become more sophisticated, it’s becoming increasingly difficult to instantly spot a potential scheme. Thankfully in this situation, there are lots of organizations stepping up to stop scammers from making money off of human tragedy.

While bad spelling and grammar and requests for gift cards are still hallmarks of a scam, ConsumerAffairs went looking for new wrinkles that might help out in today’s more refined scam world. Here’s what we found:

Websites that have “Ukraine” in the URL. Anyone -- including scammers -- can register a domain name that contains nearly every possible combination of words. As an example, when ConsumerAffairs looked for variations of “SupportUkraine.com," we found nearly 30 variations ranging from “supportukraine.services” and “helpforukraine.com” to “supportukrainestudents.com.”

Security researchers at ESET have already done some homework on fake URLs and found several Ukraine-related domains that people should “be wary of."

Beware of group-based social media. ESET researchers said they’ve also seen emotional pleas for help that are based in social media “groups.” ConsumerAffairs found several “Help Ukraine” related communities on Reddit – two with tens of thousands of members. More than 50 results popped up when we looked for Facebook groups relating to “Help Ukraine.”

“Be skeptical of social media posts that promote a charity unless you verify that the organization is legitimate. The friend recommending it may not have done their research and the number of likes for a social media post doesn’t say much about its legitimacy, either,” the ESET researchers said.

How to find out if a charity is truly legitimate? 

Consumers who want to verify that the charity they're giving to is legitimate can use Candid and CharityNavigator. In its coverage of the Ukrainian donation situation, the Council on Foundations appeared to be a big cheerleader of Candid. It credited the organization with tracking 310 Ukraine-related grants valued at $443 million and an additional $333 million in pledges.

The Council on Foundations also offers thoroughly-vetted response funds that people can feel safe donating to, as well as non-profits for people who are sympathetic to those impacted in Russia.

“You should also check with your state's Bureau of Charities,” Levin told us. “They’re usually part of the State Division of Consumer Affairs or the Office of the Attorney General in your state.” 

Scammers have proven once again that they’ll stop at nothing to defraud someone. 

With more than 35,000 wildfires ripping through the U.S. West, burning nearly 3 million acres and putting people at great health risks, the fraudster community has decided to see what they can make out of that calamity. According to Scamicide, scammers are posing as charities that help wildfire victims, but they’re only hoping to help themselves and no one else.

Think before you offer to donate

One of the leading reasons scammers love taking the charity route is because these organizations are not subject to the National Do Not Call Registry. That means legitimate charities can still contact you by phone even if you’re signed up.

The problem, says Scamicide’s Steve Weisman, is that you can never be sure who is really calling you, so you may be contacted either by a fake charity or a scammer posing as a legitimate charity. 

“Using a technique called spoofing, the scammers can manipulate your Caller ID to make it appear that the call is coming from a legitimate charity when it is not,” Weisman explains. “Similarly, when you are solicited for a charitable contribution by email or text message you cannot be sure as to whether the person contacting you is legitimate or not.”

There are other hallmarks of scam charities. The Center for Disaster Philanthropy (CDP) notes that with cryptocurrency being a hot commodity, some scammers are asking donors to use bitcoins or other digital assets to make their donations. If that happens to you, stop right there because it’s a big red flag that someone is out to fleece you.

Do your homework and ask the right questions

ConsumerAffairs reached out to Patricia McIlreavy, the President of The Center for Disaster Philanthropy, for more advice about how people can avoid charity scammers. At the top of her list of suggestions is doing your research. 

McIlreavy recommends that consumers ask the organization they’re donating to if it’s a registered non-profit and whether it has a proven history of working with communities in disasters. 

“Additionally, there are tools, such as Charity Navigator, Charity Watch, BBB Giving, Guidestar, which do the vetting research for you. Nonprofits detail their ratings with these organizations on their websites,” she said.

Another way to find out if the charity or fundraiser is registered in your state is by contacting the National Association of State Charity Officials. 

“It is commendable to want to help, and always a good idea to take an extra moment to ensure your hard-earned dollars get to the people in need,” McIlreavy said.

The Federal Trade Commission (FTC) suggests that you also consider these tips if you want to donate to a charity:

• Designate the disaster to make sure your funds are going to disaster relief, rather than a general fund. Note: The CDP has two active wildfire-related funds that you can check out if you want to donate to relief efforts.

• Don’t assume that charity messages posted on social media are legit. Research the organization yourself. Search the name of the organization with terms like “complaint,” “review,” “rating,” or “scam” to see if there are any potential issues.

The holidays are just around the corner, which means the season of giving is nearly upon us. But a recent action taken by the FTC shows just how important it is for consumers to be cautious when it comes to the organizations and causes they choose to donate to. 

This week, the agency -- in coordination with regulators from New York, New Jersey, Minnesota, and Virginia -- secured a settlement with a charity funding operation that allegedly defrauded consumers out of millions of dollars in donations. 

The settlement names four defendants who ran several charities that were supposed to raise money for veterans, retired and disabled law enforcement officers, breast cancer survivors, and others in need. However, they allegedly pocketed up to 90 percent of these donations to pay themselves. Regulators say the sometimes less than two percent of proceeds went to the groups that were supposed to receive the funds.

As part of the settlement, the charity fundraising business is being forced to shut down and the defendants will have surrender tens of millions of dollars to the aforementioned states. The FTC says these funds will then be redistributed to legitimate charities “that perform services that mirror those promised by the sham charities.”

“This action puts fundraisers on notice: the FTC will not only shut down sham charities, it will aggressively pursue their fundraisers who participate in the deception,” said Andrew Smith, the director of the FTC’s Bureau of Consumer Protection. 

Do your research before donating

This case highlights just how important it is for consumers to do their research before donating money to a charity. New York Attorney General Letitia James says that establishing trust with a charitable cause through proper vetting can ensure that your generosity isn’t being exploited.

“My office will continue to work with partners such as the FTC and other states to take action that protects donors and charitable entities,” she said. 

Smith says consumers can use the FTC’s website at this address to learn how to spot a potential charity scam.

It doesn’t matter what your political affiliation is; nefarious scammers are trying to leverage what sounds like an innocent enough call into a donation that goes directly into their pockets and not any candidate’s.

Scamicide reports that fraudsters are pulling off the scheme via spoofing, a technique used to make it appear like a call is coming in from a known source on a Caller ID -- in this case, a candidate or political party.

How do you prevent this?

What’s worse is that there’s a hole in the U.S. Do Not Call list rules that allow political parties to robocall all they want.

So, what’s a consumer to do? Either don’t answer what appears to be a call from a political candidate or party and force the caller to leave a message, or use a smartphone add-on like Google’s Screen Call. 

Other than that, if your Caller ID pops up with the name of a candidate you favor, be smart.

“If you do wish to contribute to a political campaign, the best way to do this is by going to the candidate’s official website and make your contribution,” Scamicide’s Steven Wiseman, Esq. suggests. 

“Even then, make sure that when you are giving your donation online that the website address begins with https instead of just http. Https indicates that your communication is being encrypted for better security. If you are being asked to contribute to a political organization rather than a candidate, you should definitely do your research to determine the legitimacy of the organization before making a donation.”

Removing your phone number

ConsumerAffairs found another defense, too. According to Lifewire, most states require only street addresses -- but not a phone number -- when a citizen registers to vote. Logically, if a registered voter removes their phone number, any call pretending to be from a political party or candidate could be considered a fake. 

If you like that notion and you’ve already registered to vote, all it takes is a voter registration update/change to remove your phone number. The effort it takes to make that happen varies from state-to-state. The U.S. Election Assistance Commission offers a complete directory of every state’s offices and processes.

The Federal Trade Commission (FTC) is lowering the boom on any charity that maliciously asserts that it’s raising money on behalf of servicemen and veterans.

Law enforcement and charity regulators from every state in the Union are partnering in the FTC’s crackdown. So far, those combined forces have taken more than 100 actions and established an online education resource called “Operation Donate with Honor” to help consumers understand how charity scams work.

“Americans are grateful for the sacrifices made by those who serve in the U.S. armed forces,” said FTC Chairman Joe Simons. “Sadly, some con artists prey on that gratitude, using lies and deception to line their own pockets. In the process, they harm not only well-meaning donors, but also the many legitimate charities that actually do great work on behalf of veterans and servicemembers.”

Preying on veterans and servicemembers

As an example, the Center for Public Integrity reported that retired Army Maj. Brian Arthur Hampton headed up three such organizations, one of which included the Center for American Homeless Veterans.

One of the telemarketers that Hampton allegedly used -- Outreach Calling -- kept a whopping $7.9 million of the $8.7 million it raised for Hampton’s “Circle of Friends for American Veterans” between 2011 and 2015.

In Florida, the state’s attorney general Pam Bondi was able to get a judgement against the sham veterans charity Help the Vets, Inc. and its founder, Neil Paulson, Sr. Help the Vets raised approximately $20 million between 2014 and 2017 with the promise that donations would assist vets with everything from medical care to suicide prevention. Bondi found that the money went to Paulson instead.

Paulson’s game ended when he signed a Stipulated Final Judgment and Permanent Injunction, in which Help the Vets relinquished its remaining assets and Paulson was banned for life from any kind of charity management. He also was required to fork over $1.75 million, nearly twice the amount Paulson personally received from Help the Vets.

“July is Military Consumer Protection Month and one way to protect our veterans and service members is to stop scammers who exploit military members in an effort to steal charitable donations,” said Bondi.

“It is reprehensible that anyone would prey on the good intentions of people trying to help our heroes and I will not let the immoral actions of a few bad actors taint the good work of our legitimate charities.”

Donor beware

The desire to support those who have fought for the U.S. can turn many consumers into easy targets. The FTC and state attorneys general can’t emphasize the importance of taking some time to check out any and all fundraising pitches.

Whether it’s online, telemarketing, direct mail, or someone that just shows up at your door, consumers are cautioned to tell the marketer that they’ll take it under consideration and get back to them.

Charity scams can run the gamut -- from misleading prize promotion solicitations to tax deductions. When disasters hit, scams are prone to rearing their ugly heads in hopes of turning sympathizers into suckers.

The FTC publishes updates on scams and warns consumers to not to let anyone rush them into making a donation. It also posts reminders to beware of scammers who try to trick consumers into paying them by thanking the consumer for a donation they never made.

Perhaps the most prevalent types of charity scams are carried out through an ever-increasing number of robocalls. In particular, the FTC warns consumers to be cautious about answering calls that look like they’re from a local area code, a new wrinkle scammers have started using. The agency continues to emphasize that all consumers should make sure they’re on the government's national Do Not Call registry.

How to validate a charity

In the case of the veterans and servicemembers scam, the FTC has produced a video that gives consumers some basic information on what to look out for.

The FTC also has a handy checklist that consumers can use to gauge the integrity of a charity before they write a check.

Other resources include Charity Watch where consumers can sniff out the validity of a charity and how much it actually gives to the intended programs it says it supports. Plus, almost every state has its own check-a-charity interface or, at minimum, updates on scams its attorney generals have uncovered.

"I'm glad that government regulators are shutting down some scam charities that have been ripping off donors for years. But we must remain vigilant; there are still far too many unethical or poorly performing charities still actively soliciting our dollars. This is particularly true with veterans and military charities," said CharityWatch President Daniel Borochoff in a statement to ConsumerAffairs. 

Consumers are targeted by scams every day, but the Internal Revenue Service (IRS) warns that recent tragedies have unfortunately created an uptick in scams seeking to exploit Americans’ desire to help victims.

The IRS points out the country has experienced a series of major disasters and a mass shooting in quick succession, so donors need to be particularly vigilant to look for signs of a scam before sending money.

“These scams evolve over time and adjust to reflect events in the news, but they all typically are variations on a familiar theme,” said IRS Commissioner John Koskinen. “Recognizing these schemes and taking some simple steps can protect taxpayers against these con artists.”

Beware of unfamiliar charities

Consumers should look out for appeals for donations from unfamiliar charities, or organizations that have names similar to a legitimate charitable organization. They should also be highly suspicious of appeals that come in the form of an email, text, or telephone call since legitimate charities usually stick to mass advertising like television commercials to solicit donations.

Consumers who want to donate to any charitable cause should initiate the search for a group themselves, not respond to direct contact that may not be legitimate. The American Red Cross, Salvation Army, and United Way are three groups that are involved in providing help to victims of wildfires, hurricanes, and mass shootings.

The IRS, meanwhile, is also trying to help victims of the California wildfires. It's extending the deadline to file certain individual and business tax returns and make certain tax payments until Jan. 31, 2018. The extension postpones deadlines beginning October 8 and applies to residents of seven California counties.

Impersonating IRS agents

The tax agency spends a good deal of its time countering the efforts of scammers, who often pose as IRS agents to fool consumers. Most recently, it has warned about scammers using a phishing scheme to steal client email addresses from tax professionals to access insurance and annuity accounts.

The IRS reminds consumers that it does not call and leave pre-recorded, urgent messages demanding a call back. If you get one of these calls, it's from a scammer who hopes to scare you into thinking you will be arrested if you do not respond.

There are legitimate IRS functions that scammers may also try to exploit. The agency has sent letters to taxpayers whose overdue accounts have been assigned to one of four private sector collection agencies. Scammers are already trying to take advantage of this by calling and threatening taxpayers if they do not pay the overdue amount quickly.

What to do

If you receive one of these calls but are not aware that you have an overdue bill, it's a scam. The IRS says all of the taxpayers receiving calls about their overdue accounts are well aware of the issue, since they have been corresponding with the IRS about it for years.

Legitimate contact with the IRS almost always begins with a letter through the U.S. Mail. In rare cases, an IRS official may show up at your home or business, but they will always first establish the time and reason in a letter.

Any consumers with a question about whether a contact from the IRS is real should go online, look up the number for the closest IRS office, and call the agency directly to inquire.

For years, a supposed charity called the Breast Cancer Survivors Foundation has solicited contributions, claiming it was providing medical services to cancer victims. 

But New York Attorney General Eric T. Schneiderman says the foundation was a fraud.

“There are few things more galling than pretending to help cancer patients, when you’re really just lining your own pockets. But that’s exactly what those behind the Breast Cancer Survivors Foundation did – siphoning millions in profits for themselves and sending less than four cents of every dollar raised to medical clinics,” he said. 

Schneiderman announced a settlement with the foundation and its president and founder, Dr. Yulius Poplyansky, under which the organization will close down its operations and pay nearly $350,000, which will be directed to legitimate breast cancer organizations.

92 cents of every dollar

Schneiderman said that the foundation was a "shell charity created and run by its primary outside fundraiser, Mark Gelvan, in order to line the pockets of Gelvan, his companies, and his business associates – who pocketed 92 cents of every dollar donated to BCSF."

BCSF was founded in 2010 and began soliciting in New York shortly thereafter. By 2014, BCSF was raising on average $3 million a year nationwide from its telemarketing and direct mail campaigns. 

The Attorney General’s investigation found that Dr. Poplyansky started BCSF at the encouragement of Mark Gelvan, a professional fundraiser and longtime family friend whose relationship with Poplyansky’s family dated back to the 1970s. 

Dr. Poplyansky had no training or experience in managing or leading any type of charitable enterprise. He and the other board members of BCSF allowed Mark Gelvan to run BCSF and turn it into a cash cow for Gelvan and his businesses, Schneiderman said. Mark Gelvan has been barred from the professional fundraising industry in New York since 2004, following litigation brought by the Attorney General. 

It's not just undertakers and florists who profit from death. Local newspapers and online sites have found a steady stream of revenue in the obituary business and now routinely gouge families to run even the simplest death announcement.

Finding a profitable business model frequently results in looking for ways to milk more revenue out of each transaction, and that's what Vermont says online obit sites have been up to lately. 

Legacy.com and Tributes have agreed to pay more than $30,000 to settle charges by Vermont that they ran a scheme to solicit unauthorized donations to nonprofits in lieu of flowers.

“We are pleased to end this practice, which has cost Vermonters unnecessary fees at a time of vulnerability. This is a good outcome for Vermont donors and nonprofits alike.” Attorney General William H. Sorrell said.

According to Sorrell, the sites directed mourners wanting to donate to nonprofits like the American Cancer Society to Givalike, a third-party website that collected the money, deducted its cut, and sent the remainder to the charity.

Didn't get consent

The problem with this is that, in Vermont and many other states, it is illegal to solicit donations for a charity without first getting the charity's consent. Additionally, the state charged that in some instances, neither the deceased nor the immediate family had asked for donations to be solicited for a charity.

The sites also failed to register as paid fundraisers in Vermont and failed to follow the state's laws regarding charitable solicitations.

Under the terms of the settlement, Legacy.com and Tributes agreed not to allow software in the obituary of any Vermonter, or in any obituary where a Vermont nonprofit is listed without disclosing that a third-party’s website will be used and disclosing all fees. 

As part of the settlement, both Legacy.com and Tributes will pay the state for penalties and attorneys’ costs and fees totaling more than $30,000.

Sorrell's office is still investigating the three California-based principals of Givalike, which is no longer in business.

There is no shortage of consumers looking for a way -- any way --  to get rid of their timeshares, but the Justice Department says in a lawsuit that a timeshare donation scheme, Donate for a Cause, is a scam.

Consumers who donate their timeshares to the supposed charity are promised "generous" tax savings, which are based on allegedly inflated appraisals and are then charged inflated closing costs by a firm controlled by James Tarpey, the Montana lawyer who's behind the scheme.   

The federal lawsuit alleges that Donate for a Cause is simply used as a conduit to briefly hold title to timeshares before they are sold for a fraction of the appraised amount. 

Sold for $81

For example, the complaint alleges that one customer transferred a timeshare to Donate for a Cause that had originally been purchased for $10,597.50.  Donate for a Cause used eBay’s charity platform to sell that timeshare to a third party for only $81, yet Tarpey appraised that timeshare for $8,740, the complaint states.

According to the complaint, the timeshare donation scheme was aggressively marketed via the Internet and through national and local media outlets, including ABC 7 News in Los Angeles; Fox 10 News in Phoenix; the TODAY Show, and Fox 4 News in Kansas City, Missouri. Clips of these news-based promotions are posted on the front page of the Donate for a Cause website.

Besides Tarpey, the lawsuit names three associates, Ron Broyles of California, Curt Thor of Washington, and Suzanne Crowson of Montana – all of whom, according to the complaint, assisted Tarpey in running the timeshare donation scheme.

For-profit telemarketers raised $302 million for charity from New Yorkers in 2013. They kept $156 million, more than half. That's according to a report, "Pennies for Charity," released today by New York Attorney General Eric T. Schneiderman.

“New Yorkers who are generous enough to donate their hard-earned money to charity deserve to know how that money is really spent, including how much is used to pay for-profit telemarketers,” Schneiderman said. “Our Pennies for Charity report is an important tool for transparency because it informs the donating public what portion of their charitable contributions made through telemarketers went to the outside fundraisers’, and how much was left to support charitable programs.”

At 48%, the share of funds raised by for-profit telemarketers that went to charity in 2013 increased significantly in comparison to 2012, when only 37% of the funds raised went to the charitable missions donors intended to support. The Pennies for Charity report has been published annually for the last 12 years, drawing attention to this issue.

Other significant findings from analyzing the 573 fundraising campaigns covered in the Attorney General’s report include:

• In 75%, or 435 of the 573, the charities retained less than 50 percent of the funds raised.
• In 49.2%, or 282 of the 573 campaigns, the charities retained less than 30% of the funds raised or expenses exceeded contributions.
• Of the 573 campaigns, 316 were conducted on behalf of organizations located outside of New York.

Expensive and intrusive

Despite improvements in the share of funds going to charitable purposes, Schneiderman said telemarketing remains an expensive and intrusive method of raising funds for charity, and suffers from significant limitations compared to other forms of fundraising:

• it encourages “me-too” charities which sound like respected and effective charities, but are much less effective; for example, the well-known “Make-a-Wish Foundations” and the me-too “Kids Wish Network,” which pays out more than 2/3 of its telemarketing revenue to fundraisers;
• the largely anonymous interaction between telemarketer staff, located at a remote call center, and the call recipient is difficult to detail after the fact, making policing or proof of misrepresentation difficult;
• many charities fail to actively monitor the fundraisers they engage and hold them accountable. The Attorney General has found a number of fundraisers with significant histories of violations who continue to secure fundraising contracts, seemingly with little board oversight or involvement.

What to do

chneiderman issued the following tips when making donations via phone solicitation:

Resist Pressure To Give On The Spot.If you receive a call from a telemarketer, do not feel pressured to give over the phone. You can ask to receive information about the cause and a solicitation by mail.
Ask The Telemarketer. Ask the caller what programs are conducted by the charity, how much of your donation will be used for charitable programs, how much the telemarketer is being paid and how much of your donation the charity is guaranteed.
Ask How Your Donation Will Be Used. Ask specifically how the charity plans to use your donation, including the services and organizations your donation will support. Avoid charities that make emotional appeals and are vague in answering your questions. Be wary if an organization will not provide written information about its charitable programs and finances upon request. Any legitimate organization will be glad to send you this information.
Look Up Charities. Review information about the charity before you give. The Attorney General’s interactive website allows potential donors to easily search the "Pennies for Charity" report by the name of the charity or by region in New York State.Also confirm that the charity is eligible to receive tax-deductible donations by searching the IRS website.
Give To Established Charities. Donate to organizations you are familiar with or ones with a verifiable record of success in meeting their charitable missions. Closely examine charities with names similar to more established organizations.
Never Give Cash. It's best to give your contribution by check made payable directly to the charity. This is safer than giving by credit or debit card and far safer than sending cash. Be careful about disclosing personal or financial information; never give out such information to an organization or individual you don't know.