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Dealing with Fraudulent Charities

While most charities are honest in their methods of soliciting contributions, there are some which use pressure tactics or other dubious fundraising methods and victimize well-meaning people who only want to help a good cause.

What to watch for:

Before donating your hard-earned money to charity, there are some things you should watch for:

• Find out what the charity plans to do with your money;
  
  
• Request printed literature that explains the charity's purpose and goals;
  
  
• Read all the literature sent to you carefully before deciding to send a gift;
  
  
• Be wary if the organization will not provide information upon request;
  
  
• Ask the person requesting a donation for identification; Never open your door to a stranger;
  
  
• Never give personal information, such as your social security, bank account or credit card numbers to someone you don't know;
  
  
• Make your donation by credit card or check made payable directly to the charity. Get a receipt. Never pay with cash;
  
  
• Ask what proportion of your gift is used for "program" costs and what portion is used for administrative expenses like fundraising;
  
  
• Be alert for charities with familiar-sounding names that resemble those of better-known groups;
  
  
• Make sure your gift is tax-deductible;
  
  
• Remember, you don't have to pay for or return merchandise that is sent to you if you didn't order it.
  
  
• Ask how much of the purchase price or contribution for any ticket or merchandise sales will go to the charity. If you are told that your donation will be used to purchase tickets for a specific organization, such as for disabled children. ask who will receive the tickets.

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Police charities

Many New Yorkers like to show their support for law enforcement by contributing to police groups which sponsor legitimate fundraising campaigns.

But in recent years, there has been a growing number of professional fund-raisers who misrepresent the purpose of their solicitation, or fail to disclose that a large portion of your donation won't go to charity, but rather to pay for expenses of the professional fund-raiser.

Before giving money to any charity, including a group representing police, you should ask questions:

• Where is my money going?
  
  
• What portion of my donation will pay for fundraising expenses and how much will directly fund the charity's "program?"

Some illicit fund-raisers have promised that in return for a donation, contributors will receive preferential treatment from police. This is unlikely to be true. More importantly, it is illegal and you should immediately report such an offer to the Attorney General's Charities Bureau.

What to do:

The Attorney General's Charities Bureau regulates the conduct of charitable organizations to ensure that donated funds are used properly and protects contributors from the actions of unscrupulous fund-raisers.

Fraudulent charitable solicitations have been the subject of many legal actions by Attorney General's offices. These actions compel deceptive fund-raisers to follow the law or stop doing business.

Most charities, except religious and certain educational organizations, are required to register and file annual financial statements with the Attorney General's Office. These filings disclose the amount of money that a charity raises and how it spends its money on such things as salaries and fundraising.

Most often, you can review copies of a charity's financial disclosure by visiting the Attorney General's Office, by paying a photocopying fee, you may obtain a charity's disclosure report by mail.

If you suspect fraud by a charity or professional fund-raiser, you should contact the local Attorney General's Office.

Source: Office of New York State Attorney General

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