Beware Fake Charities About Hurricane Harvey

HUDSON VALLEY, NY — Looking at the scenes from Texas and Louisiana in the wake of Hurricane Harvey's devastation, our hearts are opened. But in a world where scammers abide and in fact flourish, we have to be careful about opening our wallets. The scams are real — take the recent case of a former Ardsley resident who was charged with fraud for faking an terminal illness and getting people to contribute to a GoFundMe account to the tune of more than $50,000.

SEE: Former Ardsley Resident Faked Cancer To Get Donations: AG

Want to help but want to make sure your money gets to the victims? The IRS and the New York Attorney General's Office have tips on how to avoid scam.

The IRS says:

• Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations.
• Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution. Scam artists may use this information to steal a donor’s identity and money.
• Never give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the donation.
• Consult IRS Publication 526, Charitable Contributions, available on IRS.gov. This free booklet describes the tax rules that apply to making legitimate tax-deductible donations. Among other things, it also provides complete details on what records to keep.
• Taxpayers suspecting fraud by email should visit IRS.gov and search for the keywords “Report Phishing.”

And New York Attorney General Eric Schneiderman adds:

• Know Where Your Money Will Go. Find out from the charity what it will do with your money. Review the charity’s financial reports for information about how it spends donations. If you have been contacted by a telemarketer, review Pennies for Charity, the New York Attorney General’s annual report of telemarketing campaigns in New York, to see how much is spent on fundraising costs and how much has been kept by the charity. Ask specifically how the charity plans to use your donation, including the services and organizations your donation will support. Ask if the charity already has worked in the local area or has relationships with any local relief organizations. Also, ask what the charity plans to do with any excess donations. Avoid charities that make emotional appeals but are vague in answering your questions. Be wary if an organization will not provide written information about charitable programs and finances upon request. Any legitimate organization will be glad to send you this information.
• Give to Established Charities. Donate to organizations you are familiar with, or have an experience assisting in disaster relief. Get information about charities that pop up solely in response to the hurricane or those with unfamiliar names.
• Be Cautious With Telephone Solicitations. Telephone calls asking for donations to charity are often made by a professional fundraiser who is required to register with the Charities Bureau. Remember – you can always hang up. If you choose not to end the call, ask whether the telemarketer is registered and how much of your donation will go to charity and how much the telemarketer is being paid. Many telemarketers receive most of the money they raise. Giving directly to a charity avoids those costs.
• Check Before You Text A Contribution. Check the charity’s website or call the charity to confirm it has authorized contributions to be made via text message. One thing to keep in mind is that donations via text messaging may not reach the charity until after your phone bill is paid. It may be faster to contribute directly to the charity.
• Before Donating to an Online Giving Site. Make sure your contribution to campaigns set up by individuals on sites such as GoFundMe or CrowdRise will go to charity and not to the person raising the funds. Don’t contribute unless you know that person.
• Don’t Respond to Unsolicited Spam Emails. These formats are usually not associated with legitimate charities. Check the Department of Homeland Security’s tips, such as Avoiding Social Engineering and Phishing Attacks that are posted at http://www.us-cert.gov/ncas/tips/ST04-014.
• Report Suspicious Organizations. If you believe an organization is misrepresenting its work, or that a scam is taking place, please contact the Attorney General’s Charities Bureau at charities.complaints@ag.ny.gov or 212-416-8401.

These websites contain helpful information to evaluate charities:

• CharityWatch - charitywatch.org
• Better Business Bureau Wise Giving Alliance - bbb.org
• GuideStar – guidestar.org
• Charity Navigator - charitynavigator.org

The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, through which people may find qualified charities; donations to these charities may be tax-deductible.

Also, more information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes.” Details on available relief can be found on the disaster relief page on IRS.gov.

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