It seems they’re everywhere at this time of year: doe-eyed innocents with sad stories asking for money to help. Not only are they intercepting you outside many of the stores you visit, they’re also in your email inbox, asking for help. Sure, we all know better than to give our life’s savings to the Nigerian prince (we do all know that’s a scam, don’t we?), but how can you tell if the others are legit? The best bet is to trust your gut – charities that seem too eager for your money or who will accept only cash ought to raise red flags for you. If you receive a call soliciting donations, be sure to ask what percentage of donations actually goes to the charity. Some organizations raise money but only pass on a small portion (15 percent) to the charity. Check out how much the charity spends on helping others and how much it spends on administration, salaries, etc. For instance, the Sodexo Foundation has no administrative charges, since the company pays for all cost of operation and all donations go directly to people in need.
Scammers have gotten more sophisticated – especially online – and some basic precautionary actions can help keep you from getting scammed.
Be sure the charity address is legitimate. Scammers can “spoof” a charity’s Web site, or use urls that are similar to the legitimate organization but not exact, so type the full name of the organization into a search engine such as Google, and make sure the Web site name that pops up matches the one asking you for money.
Be careful of “phishing,” in which a popup window opens while you’re on the Internet and asks for money.
If you do decide to give money, make sure that the site asking for your personal information is encrypted – the site should have an https address rather than an http address, like the Sodexo Foundation donation page does, since the “s” means it is a secure site.
Finally, if you are at all uncertain whether the solicitation is genuine, call the charity itself. No legitimate charity minds this kind of checking up.
If you are unfortunate enough to be scammed, be sure to report it to the Better Business Bureau; you also should check out the charity before making any donation.
Giving during the holidays is still important, especially when so many organizations are feeling the squeeze of the economy – just be sure you’re giving to an organization that will do some good with the money.