Charity Scams
Learn to identify fake charities and ensure your donations go to legitimate organizations.
What is Charity?
Charity scams exploit human compassion by creating fake organizations or impersonating real charities, especially after natural disasters, health crises, or other tragedies. Scammers set up fraudulent websites, conduct phone campaigns, and even go door-to-door to collect donations that go straight into their pockets.
These scams peak during disaster relief efforts, holiday seasons, and major news events when people are most motivated to help. The fake charities use names very similar to well-known organizations to cause confusion.
Beyond outright fake charities, some scam operations are technically real organizations that spend almost all donations on administrative costs and fundraising, with only a tiny percentage going to the stated cause.
How to Identify This Scam
- 1High-pressure tactics demanding an immediate donation
- 2Charity name is very similar to, but not the same as, a well-known organization
- 3No clear information about how donations will be used
- 4Requests for cash, wire transfer, or gift card donations
- 5Cannot provide tax-exempt status documentation
- 6Vague or emotional pitches with no specific program details
Real Examples (Anonymized)
After a hurricane, you receive a call from "American Red Crescent" asking for a $100 donation via gift card. They say every dollar goes directly to victims.
A GoFundMe campaign claims to be raising money for a local family affected by a fire. The photos were stolen from a news article about a different incident.
What to Do If You Receive One
- Verify charities through Charity Navigator, GuideStar, or the BBB Wise Giving Alliance
- Donate directly through the official charity website, not through links in messages
- Ask for written information about the charity's mission and finances
- Never donate via wire transfer, gift cards, or cryptocurrency
- Report suspicious charities to your state's attorney general