Fake charities

During the holidays, many of us are in the giving spirit, and we open our wallets to charity. But be careful with that generosity.

Recently, a couple from New Jersey and a homeless “good samaritan” were charged with cheating donors out of over $400,000 when they set up a page on GoFundMe.

The couple asked for support for the man, described as a Marine veteran because he’d helped them out when they ran out of gas, a report that later proved to be fake.

A holiday scammer could put whatever information they wanted on a site like this and make you believe it’s legitimate.

Another dubious practice is mail and phone solicitations by charities that spend most of the money they raise on administration rather than actual services. They’re not considered outright scams, but they reserve very few resources for their mission.

Avoid this holiday scam: Don’t donate to crowdfunding websites launched by individuals you don’t know. Inspect how much a charity provides toward its “good works” on websites like Charity Navigator and CharityWatch.

And if you’re looking for a tax deduction, visit the charity’s website to confirm its tax-exempt status, or you can check with the IRS.

By being aware and following these tips on avoiding holiday scams, you can reduce the risk of falling prey to crooks. If you encounter any of them, review your financial statements, dispute unknown charges, and report any identity theft you find immediately.

We hope you found this post informative. But don’t leave just yet. The Money Place has much more to offer its readers. For instance, check out: Wondering If You’re Losing Money? You ARE by Throwing Away These 7 Things