St. Paul, Minn. (May 19, 2009) – A caring senior citizen with good intentions of supporting a legitimate charity could easily be scammed out of money by thieves. From cancer research to children’s charities, feeding the hungry to supporting animals there is a long list of legitimate nonprofits that could use some help during these tough economic times, but questions inevitably arise about which charities to trust and how to feel comfortable giving money knowing that it will be put to good use.
According to the Federal Trade Commission (FTC), nearly 25 million Americans are victims of consumer fraud each year1. Seniors who own their home, have excellent credit and have a “nest egg” of savings make excellent marks for thieves2. While they are frequently victims of fraud and theft, older Americans tend to not report fraud because either they don't know who to report it to, or are ashamed of being the victim of a scam. Another common fear is concern about what relatives might think and conclusions about their mental capacity to take care of their finances2.
“Charitable giving should occur on the donor’s, not the charities, timetable” said Rich Cowles, executive director of the Charities Review Council. “Donors should take their time, avoid rushing decisions and make sure to support issues they really care about. To do that, donors need to feel comfortable investigating the charities’ mission statement and program offerings, but also making sure to ask any questions they might have to make donations they can feel confident about.”
The Charities Review Council offers the following tips to for giving to legitimate charities and to avoid being the victim of a scam.
Tips for giving to legitimate charities:
Make the business of giving your business. It’s important to know where your donation dollars end up. Ask questions about the nature and activities of the organization(s) you’re considering donating to – it’s the only way you can be sure the money you contribute will support a worthwhile cause.
Ask if your contribution is tax-deductible. Make sure your check is payable to the official name of the group or charity. Avoid cash gifts as cash can be lost or stolen. Never provide credit card or bank account information unless you have verified the charity and affirmed your giving decision.
Look to see if the Charities Review Council has reviewed the charity, look for the Council’s ‘Meets Standards’ seal. The seal ensures the operations, structure, and policies of the charity meets widely accepted standards for accountability and transparency to donors.
Tips to avoid being the victim of a scam:
If it sounds too good to be true – it usually is. Be weary of phone solicitation and ask to see information in writing so that you can read it over carefully and make up your mind.
Never give out personal information over the phone or Internet unless you initiated the contact. Legitimate business callers will never ask you for this information over the phone.
Be cautious of bills for pledges you didn’t make. Don’t be tricked into paying for pledges you didn’t make.
Don’t get teary-eyed. Beware of any solicitation that brings a tear to your eye, but does not describe what the charity is doing to address the problem it is describing.
Be suspicious of drawings, raffles or sweepstakes. Drawings that require payment to enter are raffles, and are illegal to conduct via the mail.
If charities send gifts such as mailing labels, greeting cards, coffee mugs etc. these tactics only cost pennies per mailing and should not be considered reasons to donate to a charity. Remember, it’s illegal for a company to demand payment for merchandise you didn’t order.
About the Charities Review Council
The Charities Review Council’s mission is to mobilize informed donors and accountable nonprofits to advance the greater good. The Council is an independent resource for people who support charities with financial donations. It is dedicated to empowering donors in making informed and thoughtful giving decisions, so that they can be more effective in helping charities advance their important community work. No other state has a similar independent resource for donors. For more information, visit the Charities Review Council online at www.smartgivers.org, or call (651) 224-7030 or toll-free 1-800-733-GIVE.
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1. National Crime Prevention Council Senior Fraud Website “Senior Fraud” http://www.ncpc.org/newsroom/current-campaigns/senior-fraudSenior Fraud — National Crime Prevention Council.
2. Federal Bureau of Investigation Website “Fraud Target: Senior Citizens” Federal Bureau of Investigation - Fraud Target: Senior Citizens