Donors beware of charities that are not what they seem

As Tuesday, Nov. 11 is Veterans Day, many will seek to show their support by contributing to charities that help veterans, military service members and/or their families.

BBB Scam Tracker received reports about alleged charities that consumers believe are using shady tactics to solicit donations. If an organization isn’t a charity, the contributions are not “donations” and cannot be deducted from your taxes.

How the scam works

An unsolicited call shows up on the Caller ID from someone claiming to be representing a nonprofit organization. In some cases the “charity” has a name that includes a law-enforcement word (police, trooper). There are plenty of variations on the scam.

The organization’s goals may seem noble, but it is recommended to research the organization before making a pledge. A previous BBB investigation revealed many red flags about one of those groups including the fact that contributions were not tax-deductible and no information was available on the organization’s president, board members and active chapters.

According to tax records, only a small fraction of donations made to the organization actually supported law-enforcement officers. That is just one example of how fundraisers can look and sound like a charity while actually lining the pockets of opportunists.

If you begin asking specific questions about the organization or how the money will be used, the caller may not answer and may tell you to call a different number where your questions also are deflected or evaded. Callers often use intimidation tactics or try to make you feel guilty about not supporting their cause. Don’t fall for it. It’s all a way to get your credit card information and a donation.

How to avoid donation scams

—Avoid mistaken identity. Many veterans charities have similar names. Before donating, verify the organization is the one you intend to support. Use trusted sources like BBB’s Give.org to confirm legitimacy.

—Know what they do. A charity’s name doesn’t always reveal its mission. Review its website or annual report to understand how donations are used and what services it provides, such as housing, education or mental health support.

—Be careful with phone appeals. Some telemarketing campaigns cost charities more than they raise. If you get a call, ask about the organization’s programs and finances before giving. Hang up if you feel pressured.

—Don’t give under pressure. Legitimate charities will accept donations at your convenience. Be cautious of anyone demanding immediate payment or making you feel guilty for hesitating.

—Ask about donated items. If you’re giving clothing or goods, find out how the charity benefits. In many cases items are sold through thrift stores, and the organization only receives a portion of the proceeds.