Alert for online donors giving to suspicious fundraising sites

Sites built largely on honor system, but be wary of scams

DETROIT – There are a slew of online fundraising websites that make it easy for people to donate to a cause. People use them for everything from recovering from a tragedy to medical bills and even paying for a divorce.

But once you click and give, there's no guarantee your money is really going where you expect.

The Rev. Faith Fowler runs Cass Community Social Services, which helps the poor improve their lives. As a 501(c)(3), the charity has strict rules.

"You have a tax-exempt provision you don't want to lose by using money in a way it isn't designated," said Fowler. "Two, you have an independent audit."

But websites like GoFundMe and Give Forward are built largely on the honor system. An Oakland County woman faces charges after setting up an account for four children of a murder victim.

"She just set it up, they sent her the check," said Tanni Dumas, mother of the murder victim. "She got the money."

Related: Woman accused of stealing donations from slain woman's kids

In Utah, a woman faked cancer and appealed for money online. A Texas resident allegedly asked for and misused money for a family she didn't know. In California, strangers set up accounts claiming to pay for a person's funeral.

Scams hurt people who genuinely need the money.

"The people giving become suspicious of anyone raising money online," Fowler said.

The Michigan Attorney General's Office said online donors should ask:
1) How do you know that the money you donate will be spent appropriately?
2) Is the amount being raised reasonable?
3) Are you sure of the asker's identity?

"As a donor you have to do some due diligence to make sure you're giving money to where you want it to go," said Fowler.

Give Forward, the site used in the Oakland County case, encourages donors with suspicions to click "Report this fundraiser." It will investigate and possibly close the fundraiser.