Charitable scams pull heart strings and drain wallets of Shelby County citizens | Wallet Warning
Shelby County citizens are some of the most charitable in the nation. Year after year, our community ranks as one of the tops in charitable giving and despite our high poverty rate, we are always willing to help those less fortunate.
Unfortunately, that makes us prime targets for charity scams.
Since 2020 the Better Business Bureau Scamtracker has received 331 local charity scam reports for a loss of $52,731.53 in the Shelby County area.
This scam unfortunately does not get reported often.
Since it is a donation, most of the time people have no idea they have been scammed. With all the mass shootings seemingly happening one on top of the other and the ongoing war in Ukraine, our hearts and purse strings are continually being tugged. Sadly, scammers often take advantage of these moments of vulnerability to deceive donors.
In addition, there are often campaigns set up by well-meaning individuals who may not be able to deliver on promised relief activities. Whenever there is a major humanitarian crisis or terrible tragedy there are 2 things you can count on:
The generosity of people in Shelby County that want to help and
Fraudulent charities popping up to take advantage of that generosity.
While we certainly don’t want to deter your desire to donate, we want to help you assure that your donations are going to do the good you intend. For that reason, we worked with our partners at the Better Business Bureau to put together these tips to consider before you donate.
Donate to experienced groups
Experienced organizations stand ready to provide quick and effective assistance. Be cautious of those that form overnight in the wake of a tragedy. Make sure they are truly classified as 501(c)3 charitable organizations.
Be wary of 100% claims
Most organizations incur administrative expenses so claims that 100% of donations go directly to relief may be misleading. You can verify through their IRS form 990s which may be available on their website. You can also search www.irs.gov or www.guidestar.org.
Give money rather than goods
Donating money is the quickest way to help and provides charities the flexibility to channel resources to impacted areas. While it’s tempting to clean out your closets to donate to those less fortunate, that necessitates sorting, possibly cleaning and transporting of the items; whereas, money can be used to purchase exactly what is needed at the location where it is needed.
“Crowdfunding” sites are used to help share the stories of those in need. If giving, review the platform’s policies and procedures. Keep in mind that some crowdfunding sites take precautions in carefully screening, vetting, and managing postings, others might not. Watch out for vague appeals that don’t identify the intended use of funds.
Respect for Victims and Their Families
Organizations or crowdfunding sites soliciting funds should have permission from families to use either the names and/or any photographs of victims of the disaster or tragedy.
Identify Celebrity Fundraising Plans
Before donating to a celebrity’s fundraising effort, look beyond the fame into the details of their request. Are they representing a legitimate charity? Are they a paid spokesperson?
Financial Transparency
After funds are raised for a tragedy, it is even more important for organizations to provide an accounting of how those funds were spent. Transparent organizations will post this information on their websites so that anyone can find out without having to wait until the audited financial statements are available sometime in the future. IRS Form 990s show previous donation records.
Advocacy Organizations
Tragedies that involve violent acts with firearms can also generate requests from a variety of groups that address gun use. Donors can support these efforts as well, but note that some of these groups are not necessarily charities, and the money may not be going towards relief.
Verify Trustworthiness
Rely on expert opinion when it comes to evaluating a charity. We recommend giving to those that meet the BBB Standards for Charity Accountability, found at BBB’s Give.org. You can also check out GuideStar (www.guidestar.org) and Charity Navigator (www.charitynavigator.org) to vet the legitimacy of organizations you are considering for donations.
As always, our goal with Wallet Warnings is to help you safeguard your money. It seems especially egregious to lose money to scammers when you were trying to donate it to those in need. If you have any questions or need any additional information about anything discussed here, please call (901) 222- 0206.
We are happy to help you avoid scams, fraud and predatory lenders.
Regina Morrison Newman is the Shelby County Trustee.
This article originally appeared on Memphis Commercial Appeal: Charitable hearts in Shelby County must be aware of donation scams
