Because there is a difference...

Black Friday madness and annoying in-laws aside, this time of year is generally symbolic with the spirit of family, joy, and most importantly, generosity. Giving to charities, especially around the holidays, can be a truly rewarding experience. Unfortunately, the FraudBusters^® team at Kessler has been alerted of numerous instances of charity fraud, demonstrating that for as many folks out there who can spare the extra cash for the sake of someone else’s merriment, there are just as many waiting to take advantage of their altruism.

And while people might gasp at this inauspicious fact while shaking their heads in dismay, it shouldn’t come as a surprise. Although modern technology has led to an unequivocal progression in society, it has also ushered in a new age of con artists and the worst breed of opportunists.

With so many natural disasters occurring around the world, there is no shortage of people in need. For instance, after a devastating F-5 tornado ravaged the town of Joplin, Missouri in May, people from around the country felt compelled to help this ruined city recover any semblance of normalcy.

But alas, as the whole world watched while the citizens of Joplin navigated through both physical and emotional damage, others were waiting to capitalize on their grief and the compassion of those willing to give.  According to Chris Koster, Missouri’s attorney general, an investigation was commenced regarding a Puerto Rican online group operating under the name of Alivio Foundation, Inc. and Georgia online radio operator Steven Blood.

This group solicited funds via the Internet, which they claimed would go to St. Peter the Apostle Catholic Church in Joplin and to Catholic Charities of Southern Missouri. However, these charities reported that the money was never received. To make matters worse, Koster stated that this is only one of 260 complaints he is investigating relating to probable bogus Joplin tornado charities.

Charities advocating for cures and research of human diseases are not immune from fraudulent activity either. In September, a couple in Great Neck, New York plead guilty to charges of grand larceny and scheming to defraud after establishing a phony charity called the Coalition for Breast Cancer Cures, which deceived donators into believing they were contributing to breast cancer research.

According to court documents, they instead ended up funding David and Mindy Winston’s lavish trips and Louis Vuitton shopping extravaganzas. But, at the very least, the Winstons’ victims can sleep well knowing part of their donations went toward education: the Winstons paid their daughter’s sorority dues with the charity’s funds.

Considering this is the season for giving, the point of this isn’t to foster cynicism and deter people from helping those in need, but rather to be stringent when choosing charitable causes. There are many ways of ensuring that you get the most out of giving. Initially, you should hone in on a specific cause that speaks to you. After all, it’s your money. You wouldn’t want your goodwill benefitting an organization that is fundamentally incompatible with your personal beliefs.

This is where diligent Internet research comes in handy. Of course, Internet research is not always reliable and can leave you mired in uncertainty, despite the reassuring “.org” at the end of a charity’s Web address. The truth of the matter is that anybody can register this type of domain name, which is why verifying a charity’s legitimacy through several different avenues is essential.

First, it is important to locate a viable physical mailing address and phone number. If this information is missing from an organization’s website, it should be an immediate indicator to conduct further research. A genuine charity will gladly volunteer this information to you, as well as a detailed synopsis of its mission. Second, there are various free resources out there that exist solely to assist interested parties in navigating through potential charities. The Better Business Bureau offers a free service on its website at www.bbb.org/us/charity, where the credentials of any charity can be authenticated.

Another helpful tool is Guidestar.org, a website dedicated to dispersing information about non-profit organizations. GuideStar provides free IRS data regarding registered charitable organizations. Along with Guidestar, Charitynavigator.org and Give.org are two other websites where you can determine a charity’s “program ratio,” which refers to the amount of your donation that goes toward the charity’s actual mission versus the amount that helps fund the administrative and fundraising aspect of the organization.

If you happen to come across a charity in your own research, you should use caution, but when an organization attempts to solicit donations from you directly by e-mail or phone, you should be wary and even more rigorous in your investigation. You should always obtain specific contact information of the individual claiming to be with the organization, along with a telephone number and address, and confirm it in every way possible by using the previously discussed websites.

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