Know Your Charity: Do Research Before Donating

When disaster strikes, so do charity scams; unfortunately criminals often look to take advantage of those who wish to donate in a hurry.

The Washington State Attorney General has recently released an alert to those hoping to donate money in the wake of the debilitating mudslide in Snohomish County. The alert warns of potential scammers who might set up a charitable front only to end up stealing the money of helpful donors.

With the insurgence of charitable giving in recent years (total giving to charitable organizations in 2012 alone was $316.23 billion), there is ample opportunity for scam artists to take advantage of certain situations where monetary giving increases, such as weather disasters and national tragedies.  Along with an increase in charitable giving, more and more nonprofit organizations and social benefit corporations are being formed. How do you know who is a legitimate organization and who isn’t?

Be an informed giver

The alert put out by the Washington State Attorney General suggests that before donating, consider these points to ensure that your money is truly going to the cause for which you intend it:

• Just because a charity says your money will benefit a cause doesn’t automatically mean it will.
• Make sure the charity you wish to donate to is qualified to provide actual disaster relief if that is what they claim to do.
• If a solicitor is requesting an immediate donation and seems rushed, be wary and research them first.
• Never give out your credit card number or other personal information over the phone.
• If you cannot find any information on a charity (a website, social media pages, or any other results on Google), consider donating elsewhere.
• Be wary of donating to fake victim/memorial social media pages.
• Beware of charity names that closely mimic more well-known and established organizations.

Research the charity

Most states require that a nonprofit organization register as a charity with the state before soliciting donations, so you are able to do a name search with the secretary of state to see if the organization exists and has registered. If the organization doesn’t even exist in the state government database, that is a huge red flag.

Though there can be an urgent desire to donate as quickly as possible when disaster strikes, take the necessary precautions if you have any doubt about the legitimacy of a charitable nonprofit organization so that your money can go where it needs to go in order to make a difference as soon as possible.