Key Takeaways

  • Give directly to charities and verify they're legitimate before you give. Use tools like BBB's Wise Giving Alliance (Give.org), Charity Navigator, Charity Watch, or GuideStar. You can also check with the National Association of State Charity Officials to see if charities must be registered in your state and, if so, whether a charity contacting you is on file
  • When donating, use secure payment methods and never send donations through gift cards, wire transfers, or cryptocurrency
  • Be wary of urgent appeals, especially when you receive unexpected text messages or phone calls requesting donations

Top 6 Tips to Avoid Holiday Charity Scams

The holiday season can bring out the best in people, but it also brings out scammers looking to capitalize on others' generosity. Every year, fraudulent charities, fake websites, and deceptive donation requests abound. Give safely this season and make sure your donation really goes to those in need with a few tips and tricks, so you can be sure you're making a difference in others' lives.

A pensive woman in a snowflake robe sits on a couch in a festive, dimly lit holiday room.

1. Verify Before You Give

While some scammers pretend to represent legitimate charities, there are also quite a few fake charities with names that are similar to real ones. However you hear about the organization, before donating, follow these steps:

  • Research the organization on sites like BBB's Wise Giving Alliance (Give.org), Charity Navigator, Charity Watch, or GuideStar
  • Visit the charity's official website directly; don't click links from emails, social media posts, or messages
  • Check for transparency, as real charities will make their mission statement, contact information, and financial data easy to find
  • Ask for a receipt, since reputable nonprofits will be able to issue you one to use for potential tax deductions, and if they can't or won't, that's a red flag

If you want to go the extra mile, most states require charities to register and file annual reports to show how they use donations. Ask your state or local consumer protection agency how you can get this information. The sites listed above can also help you find this information, or you can check with the National Association of State Charity Officials to see if charities must be registered in your state and, if so, whether the one contacting you is on file.

2. Be Wary of Urgent Appeals

Charity scammers make phone calls, create fake websites, and try to steal your money or personal information. They may even spoof a legitimate charity's phone number! This means you have to be on alert for unsolicited messages or phone calls, especially if they're pressuring you to give NOW. They may use phrases like "kids will go hungry tonight" or "donate in the next hour to double your gift," among many others. While urgency can be real, it's also a big red flag. Take the time to see if an organization is real using the steps above before donating, and if you decide to donate, make sure to do so using the information you find online rather than what's provided to you. This way, you can make sure your money goes where it's supposed to, just in case the people calling or messaging you are fraudulently representing the charity.

3. Use Secure Payment Methods

Charities do not want cryptocurrency or one-time donations via gift card. You also don't want to send a wire transfer or send a personal check to someone you don't know. Instead, donate using the charity's secure website or official app. If you donate through a debit or credit card, monitor your accounts for unusual activity afterward.

4. Watch for Online Shopping Traps

Sometimes you might see online shops saying they will donate a portion of sales to charity, or social media ads will say your purchase goes toward those in need (you buy, they receive). Scammers sometimes run these efforts, so only shop with well-known retailers or verified small businesses, and avoid deals that seem too good to be true.

5. Give the Gift of Awareness

Share what you learn! Talk with friends and family, especially seniors, about common scams and encourage your loved ones to think twice before donating or sharing payment information online. If you're not available, remind them they can always call their bank to verify whether something is legitimate or a scam.

6. Trust Your Gut

A legitimate charity will not pressure or guilt you, and they especially will not make it difficult to verify they're legitimate. If something feels off, it probably is. Don't feel bad about hanging up and doing your own research if you want to donate!

How to Report Scams

Always report scams when you see them. This way, police and other government agencies have a much better chance of catching the scammers and preventing them from taking advantage of others who could lose money to them. You can file a report to the Federal Trade Commission at reportfraud.ftc.gov. You can also take reporting holiday fraud one step further by reporting the crime to the FBI and the Federal Trade Commission (FTC).

Lastly, if you want to stay informed, you can sign up for consumer alerts directly from the FTC.

What to Do if You Were Scammed

First, don't feel bad about what happened, and move forward knowing you've learned a thing or two! Next, file a report with the FTC to help stop them from scamming others. Last but certainly not least, it's time for some damage control. The FTC can help you with its "What to Do If You Were Scammed" page, which lists next steps (and legitimate contact information!) so you can move forward and protect yourself from losing anything else.

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