Lots of people around the country are struggling right now and it’s not just the coronavirus pandemic that’s hitting them hard. From wildfires burning in the West to the path of destruction left in the wake of Hurricane Sally, many Americans need help with food, shelter and supplies.
If you want to donate to support people in need, make sure you’re giving to a reputable charity. The Federal Trade Commission has some advice to make sure your money doesn’t fall into the hands of scammers.
When it comes to donating, be careful how you pay. The FTC says be wary of organizations asking for donations by wire transfer, gift cards or cash. Instead, it’s safer to pay with a credit card or by check.
Also, if you’re interested in supporting a certain cause, the FTC suggests searching that topic along with phrases like “best charity” or “highly rated charity.” If you’re looking to donate to a specific charity, search its name with words like “complaint,” “review,” “rating” or “scam.” The FTC says you can also research charities through BBB Wise Giving Alliance, Charity Navigator, CharityWatch and GuideStar. Those are all websites that offer reports and ratings about how charitable organizations spend donations and conduct business.
The FTC says some scammers will try to rush you into making a donation. Do your research and wait until you feel comfortable giving money to a certain organization. Also, be aware of some of the tactics scammers use to rope people into sending them money. The FTC says scammers can change caller IDs to make it appear as if a call is coming from a local area code. Scammers can also use names that sound a lot like the names of real charities. The FTC says this is why it’s so important to do research before donating.
Some other red flags are if a charity makes vague claims without detailing specifically how the donations will be used. You should also watch out for guaranteed sweepstakes winnings in exchange for a donation. The FTC says not only is this a scam, it’s also illegal.
In addition to all the other advice, be careful about giving money through an online portal. The FTC says you’ll want to know how much of your donation actually goes to the charity, how long it will take to get there, and if any service fees are taken out. These details should be easy to find on verified donation websites. If not, the FTC recommends taking your money elsewhere.
Once you find a charity you feel comfortable giving money to, the FTC says it’s a good idea to keep a record of all your transactions. Also, look over your statements closely to make sure you were only charged the amount you agreed to donate. Double check that it’s not a recurring payment if you only wanted to give a one-time donation.
You can report scams to FTC.gov/complaint. Remember, you can also report scams, fraud and price gouging to the Colorado Attorney General’s Office. The consumer hotline number is 800-222-4444.
