DPSS4361

Charity Fraud

Americans contributed nearly $450 billion to various charities in 2019 according to the Giving USA Foundation’s annual report on U.S. philanthropy. This act of generosity supports many amazing organizations which put those billions to work for health care, education, environmental protection, the arts and numerous other causes. Unfortunately, it also opens a door for scammers, who capitalize on donors’ goodwill to line their pocket. Many such frauds involve faux fundraising for veterans and disaster relief. Scammers know how readily we open our hearts and wallets to those who served and those rebuilding their lives after hurricanes, earthquakes or wildfires. They also follow the headlines. The spread of the novel corona virus in early 2020 was accompanied by phony appeals to donate to victims or emergency response efforts. But charity scams come in all shapes and sizes, from gifts on social media and crowdfunding sites to massive national cons, like the network of bogus cancer charities the Federal Trade Commission (FTC) said cheated donors nationwide out of $187 million before it was prosecuted in 2015. Sham charities succeed by mimicking the real thing. Like genuine nonprofits, they reach you via telemarketing, direct mail, email and door-to-door solicitations. They create well-designed websites with deceptive names. For example, as hurricanes churn toward landfall, for example, scammers snap up URLs featuring the storm’s name. Some operate fully outside the law; others are in fact registered nonprofits yet devote little of the money raised to the programs they promote. Charity scammers are especially active during the holidays, the biggest giving season of the year. However, with a little research and a few precautions, you can help ensure your donations go to organizations which genuinely serve others, instead of helping themselves. ▬

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