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The Federal Trade Commission has issued a new consumer publication, “Charitable Donations: Give or Take?”, advising consumers on how to avoid potential charity scams. With more than 700,000 federally recognized charities soliciting for charitable contributors, it pays to be cautious when making a donation.

The publication, available at http://www.ftc.gov/bcp/edu/pubs/consumer/telemarketing/tel01.shtm, provides tips for consumers when donating to charities:

  • Some charities hire professional fund-raisers to solicit donations. Professional fund-raisers are entitled to keep a portion of the money they collect. If you are solicited for a donation, you might want to ask if the caller is a paid fund-raiser and what percentage of your donation the fund-raiser will keep. If you are not comfortable with the amount, you may want to donate to a different organization or send a check directly to the charity.

  • If you do not want additional telephone calls from a paid fund-raiser, you can ask to be placed on the fund-raiser’s “do not call” list. If the fund-raiser calls again, they may be subject to a fine of up to $11,000.

  • Typically, when you donate to a charity, your name is placed on the charity’s mailing list. The charity uses this list to re-contact you and often rents it or exchanges it with other organizations. You can stop the sharing of your information by including a note with your donation asking the charity not to rent, sell, or exchange your personal information and donation history.

  • Be wary of appeals that tug at your heart strings, especially pleas involving patriotism and current events.

  • If the solicitation is by phone, ask for written information about the charity, including its name, address, and telephone number.

  • Call the charity. Find out if the organization is aware of the solicitation and has authorized the use of its name. If not, you may be dealing with a scam artist.

  • Watch out for similar sounding names. Some phony charities use names that closely resemble those of respected, legitimate organizations.

  • Ask how your donation will be distributed: How much will go to the program you want to support, and how much will cover the charity’s administrative and telemarketing costs?

  • Refuse high pressure appeals. Legitimate fund-raisers will not push you to give on the spot.

  • Avoid cash gifts. Cash can be lost or stolen. For security and tax record purposes, it is best to pay by check.

Before donating to any charity, check out the organization you are considering with these organizations:

If you believe an organization may not be operating for charitable purposes, is making misleading solicitations, or is ignoring requests to be placed on a “do not call” list, contact the Federal Trade Commission, your state Attorney General, or your local consumer protection office.

To order copies of this or other FTC Consumer Alerts, visit http://www.ftc.gov/ftc/contact.shtm#publications. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint, or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available for hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Contact Information

Media Contact:

Office of Public Affairs
202-326-2180
OPA@ftc.gov

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