Scams spoil charitable giving

As the nation continues to wear an economic downturn for the third straight season, Americans contend they will continue contributing to charities during the most popular giving time of the year.

A study conducted by the American Red Cross revealed that 68 percent of responders believe the recession cannot last much longer, and seven out of 10 (more than 57 percent , of people asked said they intend to donate more or about the same to charities during the final weeks of 2011 than they did one year earlier.

“Despite the difficult economy, Americans want to give and help others in need,” Red Cross President Gail McGovern said. “With so many people out of work, they want to give something that means something.”

In addition to charitable attitudes that emerge between Thanksgiving and the New Year, many givers also look into the tax deductions that might be available for the next filing year.

The concern for any legitimate charity, and even government tax processors, are the number of scams that take advantage of well-meaning people.

“Any discussion on charitable giving during the holidays has to start with a warning,” Internal Revenue Service spokesperson Dee Stepter said. “Watch out for scams.”

Exact numbers on how many people are taken by scams each Christmas season are not known. Officials contend for every one reported there are probably more that are not admitted to or realized by victims.

According to scambusters.org, legitimate charities spend between 60 and 99 percent of the money they collect on the people they list as serving.

By contrast, charity scammers tend to spend the bulk of their collections on administrative costs.

“Don’t let [anyone] take advantage of your good intentions,” Stepter said. “Research unfamiliar organizations.”

Stepter suggested checking for credentials or registration if one questions a caller claiming to represent a charity. She also said that the Better Business Bureau chapters and the state attorney general’s office would have listings of any scammers or negative reports made to their agencies.

Scambusters.org noted that scammers often copy donation methods used by some legitimate charities.

One example is the idea of donating a car. “The problem is that very little of the car’s value goes to charity,” a scambusters.org report said. “For-profit businesses handling the cars on behalf of the charities pay costs to tow, condition cars and advertise. They sell them at wholesale auctions, leaving very little for the charity.”

Email charity scams have increased during the past few years. Many email scams use legitimate sounding names or names that are similar to those of real charitable organizations to fool their victims.

Multiple well-known charitable groups advise that they will not ask for personal information such as social security numbers or bank account numbers. Any solicitor that does should be shunned and reported to law enforcement. Officials said to try and get a name and phone number or mailing address that can later be turned over to police or the attorney general’s office.

Scammers often pose as police or firefighter organizations while making telephone solicitations. Before giving anything to these callers, law enforcement sources have said that donors should make sure that the group being represented is local and legitimate. Get specifics on the program and how donations are to be used.

Fundraisers are also common this time of year, but telemarketers can also be scammers. Legitimate charities using fundraising telephone contacts generally approach past donors and are not making cold calls to new prospects.

One credible source for checking out all charities is CharityNavigator.org. A Salvation Army employee who did not want to be identified said that any real charity would not balk at being asked questions or checked before a donation is made.

Stepter said those looking for tax deductions need to remember that only qualified, registered organizations are tax deductible. IRS publication 78 is available both online and at public libraries for those wanting to check on the legitimacy of a charity whether the individual intends to seek a deduction or not.

“Scammers are active year-round trying to steal your money or your identity or both,” Stepter said. “Don’t let them take advantage of your good intentions.”

Salvation Army bell ringer April Williamson of Houma says giving has been good so far outside the Wal-Mart on Martin Luther King Boulevard. MIKE NIXON