Natural disasters and times of crisis can make heroes out of people that stand up and take immediate action to help others. Unfortunately, it’s also when fraudsters and cheats will take advantage of people that want to help.
You want your donations to go to help people, so keep an eye out for fraud charities that only exist to make the people that run them rich. Here are some signs to watch for.
First, have you ever heard of the charity before? Just because it’s a new charity that doesn’t mean that it’s a fraud. After all, the legitimate charities have to start somewhere too, but fake charities tend to spring up around major events to take advantage of people’s feelings. After one of these big crises, you should definitely tend to donate to charities that you trust that have a proven track record. At the very least, look up any new charity on a charity watchdog group like Charity Navigator or CharityWatch.
Second, expect someone calling you for a donation to answer specific questions clearly. If they are really a charity they should know the percentage of funds allocated to administration and marketing, and what their target groups are, and have a clear idea how they will achieve those goals. Be especially wary of vague claims such as “educating the public” or “promoting awareness.”
Third, legitimate charities act like real businesses. Never give your financial information out via email and be suspicious of postings on social media that demand your money as fast as possible. Real charities usually have people that you can call up to talk to and have clear contact information. Also, since it can take days for banks to process payments, charities shouldn’t rush you into donating without answering your questions first.
Keep these tips in mind when you see websites and social media campaigns circulating on the internet, and if you get a funny feeling from someone ask you to donate to a charity, wait until you have a chance to check them out before you donate.