As the holidays approach, communities transition into the season of giving and charity. Many kindhearted people are eager to donate toys, gifts and money to charities. We should give generously, especially if we are lucky to be blessed with abundance. And for those who are believers, God has commanded them to give and address the physical needs of the impoverished. However, we must use discernment when giving. It is critical that we verify our money is going to legitimate causes. Unfortunately, criminals prey on people’s generosity during the holiday season and use it as an opportunity to steal money through fraudulent schemes.
How to avoid being scammed during the holiday season?
Avoid giving money by phone when solicited by a caller
Yes, some legitimate nonprofits make cold calls and request donations over the phone; however, it is difficult to verify the identity of callers. Do not provide your credit card number to a stranger that calls even if the Caller ID shows the name of a nonprofit. Hackers know how to manipulate the information that displays on Caller ID to hide their real identity. Instead, research the organization online then make donations using their website if that website is secure. Secure websites use encryption, and the website address will begin with HTTPS. Alternatively, you can send a money order or check to the organization’s official mailing address.
Do not respond to random requests by text message
Some hackers are using text messages to direct victims to fake donation websites. This cybercrime is called Smishing. Normally these text messages include a website address or link which the recipient clicks on to visit a website. Never, ever click on links included in unsolicited text messages. These links can route you to malicious websites that steal your credit card number or infect your device with malware. Instead, research the organization then make donations using their official website or mail in a donation.
Do not give money to solicitors using QR codes or tablets
Sometimes people stand outside popular stores, supermarkets or gyms to solicit donations. You should not trust street solicitors or their devices. You have no idea if the person’s phone or tablet is secure. The person could be honest and legitimate, but you have no way to verify that their device is safe to use. The device could be compromised or infected with malware. There is also risk that your credit card information could be stored on the device allowing anyone who has access to that device to access your credit card details.
Donation by Mail Solicitation
Sometimes nonprofits and charities send mailers to your home requesting donations. These mailers are generally safe. Just make sure you verify the P.O. Box or mailing address on the return envelope. The return address must match up with the organization’s official mailing address. Usually, you can verify the mailing address by performing a quick search online. You can also call the organization directly and verify the return mailing address before sending in a donation.
How do you verify a charity is legitimate?
Use the IRS search tool
Go to IRS.gov and use the Tax Exempt Organization Search (TEOS) tool to confirm the charity is a registered 501(c)(3) organization. This also allows you to confirm if the organization is eligible to receive tax-deductible donations.
Look up the organization’s EIN
The IRS tool can provide the organization’s Employer Identification Number (EIN), which can be used to verify their status.
Visit charity watchdog websites to research the organization’s reputation
You can research charities on websites like Charity Navigator, the BBB Wise Giving Alliance (give.org), and CharityWatch.org. These organizations rate charities based on financial health and accountability.
Review the organization’s financial documents
Legitimate charities publish their financial records and make them available to the public. Look for their Form 990 on watchdog sites or on the charity’s website to see how they use donations.
Don’t be afraid to say “No”
Some people feel guilty saying no to a request for donations. We often feel compelled to be nice, or we feel shame in turning down a request for money when we have it. Bad guys understand this and will use your feelings against you to get you to comply with their requests. However, you are under no obligation to blindly give money to a stranger without first researching the cause. You’re not being stingy; you’re being smart and using discernment. Even the bible says in Matthew 10:16: “Behold, I send you out as sheep in the midst of wolves. Therefore, be wise as serpents and harmless as doves”.
Have a safe and happy holiday season!