Be your own charity watchdog

Fraud is a multi-billion dollar a year industry and has many players whose job has the singular goal of separating you from your money. According to the Association of Certified Fraud Examiners, the majority of fraud losses are never recovered. It’s always better to prevent falling victim to a scam, especially when you are trying to do a good deed.

We all have big hearts, so let’s make sure your money goes where you are expecting it to go.

Fraud is the great equalizer: All ages, genders, and socio-economic groups are affected. Seniors are targeted because of their assets and loneliness.? Gen Zers have a false sense of security about technology and are becoming a large target group for online schemes, such as employment and student loans. Immigrants are targeted because of fear of governmental action and possibly language barriers which can create misunderstanding or confusion. Non profits and churches are targeted because of their lack of financial controls and willingness to overlook red flags, and small businesses and professionals are targeted because accounting is rarely the key skill of the owner.

1.???? Know your recipient: Trust but verify. Don’t give money you can’t afford to lose, especially to people you don’t really know. ?Research charities that ask for donations. Don’t give cash and always ask for a receipt. Check the legitimacy of charities with Charitynavigator.org , Guidestar.org , Better Business Bureau – BBB.org .

2.???? Get educated: Learn about the finances of your intended charity. Do your homework. Read the 990 – the non profit IRS reporting form. Are they current in their filings? Check their tax exempt status on IRS.gov . Demand transparency from their financial team. How much is being spent on overhead and how much is reaching the people who need it? Sign up for Consumer Alerts and scam alerts from the Federal Trade Commission – FTC.gov .

3.???? Keep numbers to yourself : Never give out your personal numbers such as Social Security numbers, PIN numbers, bank account numbers. Legitimate charities will never ask for those.

4.???? Get off the lists: Sometimes, the way charities make money is by selling your donor information. Your willingness to be generous is worth money to people who would exploit your generousity in the future.? Sign up for www.donotcall.gov to stop calls and https://www.optoutprescreen.com and https://www.directmail.com/mail_preference/ to stop unwanted direct mailings. Do not answer, or call, write, email, text or message back or give out any personal information. Ignore and Delete.

5.???? Take your time and don’t feel pressured: Scammers will often use Limited Time, Help Now, Free Gift if you donate today! Take a breath, step back, and ask for more time to review the information before making a financial decision.

6.???? Love, Fear, Security, and Greed: ?Fraudsters are experts at preying on common human feelings and insecurities. You can’t personally save every lost kitten in the rain. There was an elderly woman who wrote checks for one single dollar to every charity that sent a return envelope showing sad puppy eyes. She could have found one local non profit that she felt drawn to help and consolidate her donations to a more meaningful amount. Maybe your volunteer time will make more of a difference. ?

7.???? Delegate but don’t abdicate: ?Have a trusted outsider or credentialed financial professional review, examine, and ask the hard questions if something seems incorrect. Call your local political representative and advocate hard for legislation to demand accountability and transparency for charities in your state.

8.???? Help the next person: Fraud happens to everyone, young or not, wealthy or not, it is not a sign of incompetence. Don’t be embarrassed to discuss it with your trusted advisors if fraud has already happened. Inform your relatives, neighbors, friends, and community and do your part to stop it from happening again. File a report, call the police, be the squeaky wheel and be your own watchdog.