A Season of Giving charity scam alert

Ruth to the Rescue guidelines for avoiding scams

For many of you the holiday season isn't just about shopping, it's also about giving to others.

"Giving back to the community that you live in and that you work in is very important", Matthew Rizik of Birmingham told Ruth to the Rescue.

He's not alone. Elizabeth Parus of Fraser and her coworkers band together each year to make charitable donations. "Once you do it once, you realize how good it makes you feel... you get to see a lot of the joy it brings to the families and it just makes you want to do it again each and every year."

Bad Guys Exploit Good Feelings

Giving to others does feel great, but criminals are ready to pounce on that feeling. "Identity thieves and scam artists want to prey on that emotion of you're doing something good for the world," said Melanie Duquesnel, CEO of the local Better Business Bureau.

Duquesnel suggests you pay close attention when you receive a request for a donation. Scammers often create a fake charity name that sounds very similar to the real thing.

"So, if you're not really listening or you're thinking 'Oh goodie, somebody's called me for this one organization I really want to support', you may not realize they've added or subtracted a word," warned Duquesnel.

That's just one step you should take when you're being solicited for a donation.

Also, ask for specifics about the charity. The caller should be able to tell you the organization's purpose, whether contributions to it are tax deductible, how a gift will be used and how much of it will go to the charity's program.

The second step is, don't let them pressure you into making a donation on the spot. You'll want to do some homework to make sure your money will be going to a legitimate group.

A responsible charity respects your right to make a thoughtful decision, and won't try and force your hand. "Resist the pressure. If there are high-pressure sales tactics on the part of the caller, that's usually a huge red flag and please just hang up the phone," said Duquesnel.

Other Red Flags

Working with the Better Business Bureau and the Federal Trade Commission, Ruth to the Rescue came up with these red flags that might alert you to the fact you're dealing with a scammer.

1) Be suspicious if someone asks you to wire the money or use a method of payment that can't be tracked. It's better to use a credit card or check.

2) The caller may thank your for a donation, you don't remember making.

3) Be wary of offers for someone to come collect the donation via courier. Any move intended to rush your payment, could be a warning sign.

4) Scam artists might say you'll win a prize for donating. By law, you never have to give a donation to be eligible for a sweepstakes.

This time of year, Duquesnel also offers another piece of advice. If you are paying by check, do not leave the check in your mailbox so the post office can pick it up.

"Identity thieves are combing neighborhoods right now, looking for people that are paying by check, so they can steal your bank account information," she warned.

Do Your Homework, Know the Charity

Once you know the drill to avoid scam artists, there is still more homework to be done.

"I like to research... I like to make sure that my money is going to a good cause... and not getting tied up in administration costs," says Kathy Baldwin of Grosse Pointe Park.

In fact, you don't have to wait until the holidays to do that homework and Duquesnel suggests it's always better for you to be in charge when making your donations, rather than waiting for someone to call you.

"You're driving it. You're contacting them. You're going to their website, getting their addresses," she said.

You can work throughout the year to identify charities you'd like to work with and eliminate the need to respond to other solicitations. Even better, get to know the the organizations you are supporting. "A personal relationship, especially when you're in a charity giving situation, is a huge opportunity to not only feel good, but to actually see where your money is going," said Duquesnel.

Other Factors To Consider

1) If you get a solicitation, ask the caller if he/she is a paid fundraiser. If so, ask the name of the charity, the percentage that's actually going to the cause, and how much will go to the fundraiser.

2) Keep a record of your donations.

3) Visit this Internal Revenue Service (IRS) web page to find out which organizations are eligible to receive tax deductible contributions.

4) Know the difference between "tax exempt" and "tax deductible." Tax exempt means the organization doesn't have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return.

5) Be wary of charities that spring up too suddenly in response to current events and natural disasters. Even if they are legitimate, they probably don't have the infrastructure to get the donations to the affected area or people.

Finally, here are some links to resources where you can check up on the reputation of charities.

BBB Wise Giving Alliance

Charity Navigator

GuideStar