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Safeguarding Your Generosity: A Guide to Charitable Giving8/25/2023

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Donating to worthy causes is a wonderful way to make the world a better place. Whether it’s helping with the aftermath of a natural disaster, assisting the sick, or another cause close to your heart, you want to ensure your contributions are going where you intend. Unfortunately, scammers are always on the lookout to profit off other’s misfortune.

Charity scams are especially disheartening because they manipulate the emotions of others for profit. Luckily, spotting these fraud attempts can become easy with proper knowledge and a bit of research. The following guide will shed light on ways to ensure your donations reach the people and causes you aim to help.

How to Identify Common Charity Scams:

It’s admirable to help those in need. However, you must ensure your generosity makes its way to the people who need your support. Before making a charitable donation, pause and look for the following characteristics of a scam:

  • Unsolicited Requests:

Most charity scams begin by sending unsolicited requests for donations. These messages often come through email, text, or social media because they enable fraudsters to target large groups quickly. Scammers commonly use this tactic following a major event, such as a natural disaster. Because relief efforts are moving fast, you’re less likely to research the organization seeking donations.

  • High-Pressure Tactics:

Legitimate charities rarely pressure you to make donations. They understand that giving money will also impact your finances, so they provide time for you to decide. Scammers, on the other hand, will aggressively push you to contribute. Their messages urge you to donate immediately, and they will follow up with additional notices until you comply.

  • Emotional Elements:

Scammers will use any method to profit, including pulling on your heartstrings. Charity scams are notorious for using upsetting imagery or stories to encourage people to donate. They will also try to make you feel guilty if you do not contribute. If you notice these elements in a message, it’s likely a scam.

  • Donation Options:

How a charity requests contributions is usually a telltale sign of whether they are legitimate. Scammers generally want payments that are harder to trace, such as gift cards, cryptocurrency, money orders, or cash. However, always be wary of someone asking for your private financial account information or money via a wire transfer.

Ways to Protect Yourself from Charity Scams:

When you know what to look for, it can become easier to spot a scam. But fraudsters constantly change tactics, and the digital world allows them to become even more convincing. Fortunately, there are additional measures you can take to protect yourself and your charitable donations.

  • Research the Organization:

Before donating to a cause, always do your research. Two popular websites where you can research the legitimacy of charitable organizations are:

You can also search the charity name online, followed by terms like “scam” or “review,” to see if other people have encountered issues with the organization.

Lastly, reputable charities will generally display their financial information and details about how donations are spent on their websites. If this information is not readily available, that’s a sign you could be dealing with a scammer.

  • Always Keep Records:

When donating to a charity, always keep copies of any communications and payments. If the organization turns out to be fraudulent, this information will be valuable when filing a police report and attempting to get your money back.

  • Secure Payments:

Only make contributions through channels that are easily trackable. Credit card payments are ideal because credit card companies provide more leeway when disputing fraudulent charges. Never send money via gift cards, cryptocurrency, or cash.

  • Seek Well-Known Organizations:

If you want to help those in need but are still trying to figure out how, always choose organizations you know and trust. For example, following a natural disaster, you can rest assured that your donations to www.RedCross.org will be put to good use.

  • Report Charity Scams: 

If you believe you are dealing with a charity scam or are a victim of fraud, please report it to the Federal Trade Commission (FTC) at www.FTC.gov/complaint/. Reporting these criminals will help protect others from falling into the same trap.

We’re Here to Help!

While charity scams exist, they shouldn’t deter you from contributing to causes you care deeply about. By staying informed and vigilant, you can ensure that your donations have a meaningful impact. Always research organizations first and donate through legitimate channels to guarantee your contributions reach those you seek to help.

If you believe you were a victim of a charity scam, we’re prepared to help. Please contact us immediately at (949) 588-9400 or stop by any of our convenient branch locations.

Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.



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