Chief: Not All Charity Calls are Legit

QUESTION:

Recently, I have received several calls from people saying they are seeking donations for charity. Some sound legitimate however; many are very high pressured and seem suspicious. Do you have any suggestions to help me determine what calls may be genuine and what may be attempts at fraud?

ANSWER:

Charities perform so many vital services in our communities. Unfortunately, legitimate charities are facing competition from fraudsters who either solicit for bogus charities or aren’t entirely honest about how the so-called charity will use contributions.   

To help you make a decision, the Grafton Police Department would like to offer the following information provided by the Federal Trade Commission (FTC) at www.ftc.gov/bcp/edu/microsites/phonefraud.

The Warning Signs of a Charity Scam

The Federal Trade Commission, the nation’s consumer protection agency, suggests that donors should avoid any charity or fundraiser that:

• refuses to provide written information about its identity, its mission, its costs, and how the donation will be used;
• will not provide proof that a contribution is tax-deductible;
• uses a name that closely resembles that of a better-known, reputable organization;
• thanks a potential donor for a pledge the person doesn’t remember making;
• asks a potential contributor for bank account or credit card information before the person has reviewed the organization’s information and agreed to contribute;
• uses high-pressure tactics to secure a donation before the potential donor has had a chance to make an informed decision about giving;
• asks for donations in cash;
• offers to send a courier or overnight delivery service to collect the donation immediately;
• guarantees sweepstakes winnings in exchange for a contribution.

How to avoid charity & fundraising fraud

• Donate to recognized charities with a history.  Look up the organization at the Better Business Bureau's Wise Giving Alliance, Charity Navigator, or the American Institute of Philanthropy.  Ask the caller "Are you calling on behalf of a charity? What is the name of your organization?"
• Look closely at charities with names similar to well-known organizations. Some phony charities try to gain your trust by using names that sound or look like legitimate organizations. Ask the caller "Can you point me to a Website or another resource for more information about your organization?"
• Avoid giving cash gifts. They can be lost or stolen. For security and tax purposes, it's best to pay by check, made payable to the charity, not the solicitor. Ask, "Can you give me a receipt showing the amount of my contribution and stating that it is tax deductible?"
• Be skeptical if someone thanks you for a pledge you don't remember making. If you have any doubts about whether you've made a pledge or previously contributed, check your records.
• Reject high-pressure appeals. Legitimate fund-raisers don't put you on the spot to give. Ask, "Can you mail me more information about the charity and how it works?"
• Do not do business with any charity offering to send a courier or overnight delivery service to collect your donation.
• Consider the costs. When you buy merchandise or tickets for special events, or get "free" goods in exchange for giving, remember that part of your contribution was used to pay for it.
• Be cautious of promises of guaranteed sweepstakes winnings in exchange for a contribution. According to U.S. law, you never have to give a donation to be eligible to win a sweepstakes.
• A special word about appeals that tug at your heartstrings, especially pleas involving patriotism and current events: Before you give, make sure the organization has the infrastructure to deliver the help it is claiming to provide.
• After receiving a call asking for a donation, call the charity in question to find out whether it is aware of the solicitation and has authorized the use of its name.

Anyone with questions for the Chief’s Column may submit them by mail to the , 28 Providence Road, Grafton, MA 01519. You may also email your questions or comments to chief@graftonpolice.com. Please include an appropriate subject line, as I do not open suspicious email for obvious reasons. 

Normand A. Crepeau, Jr. is Grafton's chief of police.