by Andrea Cavanaugh
The holidays are the season for giving, but solicitations to help those in need come throughout the year. Every visit to a social-media site or retail store presents one sympathetic cause after another. Along with familiar charities and causes, we get a constant flow of requests to help victims of major disasters, and pleas to aid individuals struggling with medical costs from an accident or illness or some other unforeseen event.
How can we navigate these requests, and be wise and effective charitable donors?
We should start with two questions: Who is asking for money, and how much of the donation will actually go those in need?
Many charity scammers employ similar tactics to quickly separate you from your money. These include:
- Capitalizing on high-profile events in the news, such as disasters or human-rights crises
- Using high-pressure tactics
- Adopting organization names that are very similar to longstanding or trusted charities
- Soliciting donations in cash, wire transfer, or gift cards
- Refusing to provide basic information about the organization, such as its phone number, address, or website
Solicitors increasingly use crowd-funding apps to collect money for sympathetic causes. Keep in mind that these campaigns are largely unregulated, often lack transparency, and donations made to them are not typically tax-deductible. Ask questions about who is raising money, and how they plan to distribute it.
Other campaigns are run by more legitimate organizations – but may use the bulk of your donation to pay for salaries, office space, and other costs that don’t directly aid the people in need.
Luckily, a little homework goes a long way when protecting yourself from scam solicitations. Consider these tips before donating:
- Get the organization’s exact name, address, phone number and website.
- Go to Charitynavigator.org or another reputable site to check the organization’s status.
- Search the exact name of the group online, using the words “complaint” or “scam.” This can provide fast information about its reputation.
- Contact the organization (using information not provided by the solicitor) to ask whether the campaign is legit.
These additional tips can help you maximize your donations and avoid scams:
- Keep records of your donations.
- Make an annual plan. Decide in advance which organizations will receive your donations.
- Learn about the difference between “tax exempt” and “tax deductible.” Just because the organization is exempt from taxes doesn’t mean you can write off your donation.
- Donate with credit cards or checks rather than cash or wire transfer.
- Don’t give out your account or other personal information except to trusted organizations.
It’s a great feeling to help those in need, but it pays to do a little research before you give. If you have questions about individuals or organizations soliciting for charity in Santa Monica, call the Consumer Protection Division at 310-458-8336, or visit smconsumer.org.