These scams try to take advantage of your generosity and kindness. They all involve a scammer collecting money by pretending to be a real charity. Not only do these scams cost people money, they also divert much needed donations away from legitimate charities and causes.

Often, the scammer will exploit a recent natural disaster or famine that has been in the news. Other scammers play on people’s emotions by pretending to be from charities that help children who are ill.

Luckily these types of scams are not that common. However you should always be on your guard against fake charities. The scammers can approach you in the street, by coming to your door, over the phone or on the internet.

Warning signs

• You have never heard of the charity before.
• The person who claims to be collecting donations on behalf of the charity approaches you face-to-face and does not have any identification. Remember that even if they do have identification, it could be forged or meaningless.
• The person tries to put pressure on you by making you feel guilty or selfish if you don’t want to give them money.
• The person asking for money cannot or will not give you details about the charity, such as its full name, address or phone number.
• The person gets defensive if you ask any questions about what the charity does and how . much of the donation gets taken up by costs.
• The person asks for a cash donation and they don’t want to accept a cheque. Or, they want the cheque to be made out to them rather than to the charity.
• The person doesn’t want to give you a receipt. Or, they give you a receipt that does not have the charity’s details on it.

Protect yourself from charity scams

There are several controls as well as laws governing charities as well as businesses that accept donations. The Internal Revenue Service (IRS), along with the Better Business Bureau (BBB), has regulations in place that can be found on their websites.

The Federal Bureau of Investigation’s (FBI’s) website is another source where preventatives of becoming a victim of charity fraud can be found. In their fraud alert after the Haitian Earthquakes, there is a list of guidelines people should follow when making a donation.