Giving to charity is a selfless endeavor that’s vital to the survival of countless nonprofit organizations across the globe. Without the generosity of donors, many charitable organizations would cease to exist, leaving the people they help vulnerable to illness and financial hardship.
Fraud may be the furthest thing from donors’ minds, but it’s something charitable individuals must be aware of as they consider donating to charity. According to the Federal Bureau of Investigation, charity fraud increases during the holiday season, when many people embrace the spirit of giving and seek to make end-of-year tax deductible gifts to their favorite charities. The FBI also warns that charity scams are common after disasters or tragedies, including pandemics. In fact, the Federal Trade Commission noted in September 2020 that Americans lost more than $145 million to charity fraud related to the coronavirus in the first six months of the pandemic.
One measure all prospective donors should take is to learn the signs of charitable fraud. Many charity scams target seniors, but no one is entirely safe from charity fraud. AARP notes that the following are some warning signs of charity fraud.
Perpetrators of charitable fraud prey on the vulnerability of well-meaning donors who simply want to support a good cause. Learning to spot signs of charitable fraud can provide an added measure of protection against the criminals behind such operations.