In the wake of the unfortunate circumstance from the recent mass shooting in Orlando, people from all over the country are looking to put their money, energy, and time to good use in order to make a difference. There is no doubt that an enormous wave of support has spread across the country for the victims and families of those affected.

The Internal Revenue Service has recently issued a consumer alert recognizing this as an opportunity for scam artists for take advantage of the generosity of others by impersonating charities from well-meaning tax payers. These schemes can be made over the phone, social media, e-mail, or even in person.

If you are looking to donate money to this cause, or any other cause, it is important to know the ins and outs of charity scams. With these tips, you’ll be able to direct your money to great causes that deserve it:

Signs of a Charity Scam

There are times when a fraudulent charity will seem so much like an authentic one, it will be difficult to tell the difference! They are both fully capable of using many methods of solicitation, such as the phone, face-to-face contact, e-mails, the Internet, social media, and mobile devices. The Federal Trade Commission suggests that you avoid any charity or fundraiser that:

  • Refuses to provide any information about their identity, mission, costs, or even how the donation will be used.
  • Won’t provide proof that your contribution is tax-deductible.
  • Uses a name that sounds similar to a better-known organization with a better reputation.
  • Thanks you for a pledge that you don’t remember making.
  • Uses pushy, high-pressure tactics such as trying to get you to donate immediately, without giving you time to think about it and do your research.
  • Asks for donations in cash, or asks you to wire money.
  • Offers to send a courier or overnight delivery service to immediately collect money.
  • Guarantees sweepstakes winnings in exchange for a contribution. (By law, you never have to give a donation to be eligible to win a sweepstakes.)

Checklist for Charities

If you’re looking to donate, you want to make sure it benefits the people and organizations you have your heart set on. Here’s a list of precautions you can take to ensure that your dollars go to the right people:

  • Ask for details: about the charity, name, address, and telephone number.
  • Research the organization—try searching the name itself along with the words “complaint(s)” and “scam.”
  • Call the charity’s number; they should be aware of the solicitation and authorized the use of its name.
  • Contact the Association of State Charity Officials to find out if they must be registered with the state
  • Other groups you can contact for verification and trustworthiness are: The Better Business Bureau’s Wise Giving Alliance, Charity Navigator, Charity Watch, or GuideStar.
  • Keep a record of all of your donations.
  • Create an annual donation plan, so you can decide which organizations to support and which ones should receive your donations.
  • Educate yourself! Know the difference between what is tax exempt and tax deductible. Tax exempt means that the organization doesn’t have to pay taxes. Tax deductible means that you can deduct your contribution on your federal income tax return.
  • Rarely if ever should you send cash donations. To protect yourself and your records, pay by a check made payable to the charity, or by credit card.
  • Wiring money is just like sending cash – you can’t unsend it. That being said, scammers often request that donations be wired for this reason.
  • You should be cautious when thinking about donating to a charity that suddenly sprung up as a response to current events and natural disasters. They could still be legitimate, but they might not have the infrastructure to get your donation to the affected area or people.
  • Have you considered donating via text message? If you do decide to do that, the charge shows up on your mobile phone bill. There is a chance that you have instructed your mobile provider to block premium text messages (which cost extra), and this will prevent you from donating this way.

There is no reason for you not to donate if you really want to, no matter what the charity or event is. However, it is very important to be cautious in order to ensure that your money goes to those who deserve it. Following these guidelines will help you do just that. If you have questions regarding charitable donations and how they affect your taxes when the spring comes around, contact France Law Firm today!