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Donating to charitable causes is an act of generosity that can sometimes go wrong. In 2020, the Federal Trade Commission (FTC) reported that Americans lost $145 million to COVID-related fraud, which included charity scams. When an important cause tugs at your heart, your instinct may be to grab your wallet — but doing your homework first will help you make sure your donation is delivered to those who need it. Here’s how to spot and avoid charity scams so that you’re not taken advantage of.
How do charity scams work?
The FBI warns that charity fraud schemes can occur at any time, but are prevalent after high-profile disasters and tragedies. Charity scammers ask for donations through emails, social media posts, crowdfunding platforms, or cold calls. Since fraudsters exploit vulnerable situations, the FBI encourages using caution and doing research before donating to charities.
How can I donate to a charity safely?
To ensure your donation is going to a reputable charity, the FTC shares three suggestions.
1. Use these terms in your search:
- When researching organizations, search Google using words like “best charity for [insert cause] ” or “highly-rated charity for [insert cause].”
- If you’re considering giving to a specific charity, search the organization’s name plus “complaint,” “review,” “rating,” or “scam.”
- Bonus: The FTC offers a list of resources for information such as finding your state’s charity regulator…
