Holiday time often moves people to donate to charitable organizations and causes. New York’s Attorney General is urging people to be cautious so your generosity benefits those intended … and not some scammer.
Letitia James just released her “Pennies for Charity” report that provides a resource to find out if a charity is legit - and if contributions benefit the cause. Her report of almost 300 charities found that around half of them received less than 50% of donated funds. In almost 1-in-5 charities, fundraising didn’t even cover administrative costs, so none of a donation actually benefited the cause, be it feeding the hungry, funding research for deadly disease, or helping needy children.
“New Yorkers give generously to charities to support causes they care about, and they should know that their donations are being used responsibly,” said James in a release. “Every year my office releases the Pennies for Charity report to help New Yorkers understand where their donations are going. Ahead of the holiday giving season, I encourage everyone to consult my office’s tips for charitable giving to avoid scams and ensure that their hard-earned money is being used for good.”
James offered suggestions so people making donations can be confident that their contributions are helping the intended cause.
- If you are contacted by a telemarketer, ask questions to make an informed decision. New York law requires telemarketers to disclose if they’re getting paid and what percentage goes to fundraising, rather than the cause. They are also prohibited from making false or deceptive claims to donors.
- If you receive a direct mail charitable appeal, verify the soliciting organization. Double-check to see if the organization has a familiar name and if it is the one you think it is? Watch for language that appears to be following up a pledge you never made.
- If you are donating online, do your research first. Donating on a website or app is convenient for donors and can be cost-effective for a charity. But before hitting “send,” donors should check whether a campaign is legitimate.
- Some online platforms that host groups and individuals soliciting for causes do not obtain permission from charities, or vet those charities that use their service. Donors should only give to campaigns conducted by people they know. Donors also should check what fees they will be charged and make sure that the charity has given its permission for the use of its name or logo.
- When donating online, make sure the website is secure. The web address should start with “https.” Also be wary that the web address matches the name of the charity or an authorized payment platform such as PayPal.
- Be wary of email solicitations that ask you to click a link or open attachments. These could be phishing scams that try to trick you into giving out your credit card number, Social Security number, or other confidential information.
(source: NYS attorney general)
James added the Pennies for Charity database can be searched for data on their fundraising track record, including percentage of donations that simply fund fundraising. The office also accepts complaints.
