How to Avoid Charity Fundraising Scams
Nobody knows how much in donations is lost to charity and school fundraising scams but £ billions seems likely. This guide will help you to avoid charity fundraiser scams and choose a charity to donate with confidence.
What are the Biggest Charity Fundraising Scams?
There are lots of different types of charity scam but here are some of the most common.
- Bogus charity sites – fake websites for charities that do not exist, such as temporary fraudulent websites set up during well publicised disasters (for example famines and earthquakes).
- Phishing emails – emails sent to you attempting to trick you into disclosing your bank details and passwords.
- Fraud resulting from making payments over unsecured web pages.
- Identity theft caused by viruses or spyware, giving criminals access to your bank account and other personal information stored on your computer.
How Do I Avoid Charity Scams When Donating?
- Be particularly wary of unsolicited e mails or calls.
- Never share card details, PINs or three-digit security codes.
- Never click links or open documents, as these may contain malware.
- If you are called by a telephone fundraiser, the number you are being called from should be an identifiable phone number.
- To check if a call/e mail is genuine, don’t use any contact details given to you and, instead. Google the charity’s name and use the contact details/donate button on their website.
- Do not respond to requests to donate through a money transfer company such as Western Union or MoneyGram, as this is a tactic commonly used in scams.
- If provided with bank details, only donate to accounts in the name of the charity, not an individual.
- Donate to charities you know and trust.
- On the street and at your door.
- Check whether fundraisers are wearing a proper ID badge, and that any collection tin is sealed.
How Do I Choose A Charity to Donate to?
- What causes matter most to you? Global or local, what cause and even how?
- You can search a charity regulators database, but that’s UK only and not all charities are registered.
- Or Google to find suitable charities – ‘a women’s charity working to alleviate poverty in Pakistan’.
- Research the charity.
- If you see information about an organisation’s registered charity status or number, you can verify this with the charity regulator in England and Wales, Northern Ireland or Scotland.
- Search the name plus “complaint,” “review,” “rating,” or “scam.”
- If the charity’s materials display the Fundraising Badge, or for Scottish registered charities, the Fundraising Guarantee, it may be more committed to good fundraising practice.
- If they are a registered charity, their entry in the register will provide you with lots of information and you can also download their accounts.
- This will tell you what their funding is spent on, including details of any staff paid more than £60k pa.
- Don’t necessarily take claims of having very low overheads into account.
- Any charity costs money to run and sometimes charities will choose accounting policies that minimise the amount reported in their accounts.
- If low admin overheads are really important to you, consider choosing a small volunteer run charity.
- Staffing is normally by far the biggest expenses in a budget.
- But bear in mind that the very small charities do not have the reach of larger ones, the ability to deliver major change or the economies of scale.
- If you’re not sure, donating to a group like the Disasters Emergency Committee can be a good choice, or follow their advice which can be trusted.
- It is run by very experienced charities and set up to mobilise help quickly in the face of disaster.
- For example, support for Gaza.
What Else Could I Do to Support A Charity?
- If you’re a UK taxpayer, as long as you sign a Gift Aid declaration, the charity will receive an additional 25% from HMRC (your basic rate tax).
- If you’re a higher rate taxpayer, you can claim the remaining tax back in your Self-Assessment making your donation cheaper to give.
- Supporting charities isn’t just about donating money – there are lots of other ways you could help. Many have fundraising packs you can download or which they will send to you.
- Volunteering at one of their offices, or remotely.
- Donating items if they have charity shops.
- Hosting a fundraiser at your workplace, school or just amongst friends.
- Or even just going along to one of their events and having a good time.
Thank You for Donating
Life can be incredibly hard for some and even a small donation to a charity will make a real difference to a cause you care about. Thank you for helping others. And donating to charity is good for you - research has identified a link between making a donation to charity and increased activity in the area of the brain that registers pleasure – proving that as the old adage goes, it really is far better to give than to receive.
How Do I Report a Charity Scam?
Action Fraud is the UK’s national reporting centre for fraud and cyber crime where you should report fraud if you have been scammed, defrauded or experienced cyber crime.
Other Ways to Report Scams and Get Advice
If you have made a payment in response to a scam, contact your bank as soon as possible.
In England and Wales:
Report – contact Action Fraud on 0300 123 2040.
Advice – contact Citizens Advice Consumer Service on 0808 223 1133 or 0808 223 1144 for a Welsh speaking advisor.
In Scotland:
Report – contact Police Scotland on 101.
Advice – contact Advice Direct Scotland on 0808 164 6000.
In Northern Ireland:
Report – contact Action Fraud on 0300 123 2040.
Advice – contact Consumerline on 0300 123 6262.
Other Help With Scams
This Article on Charity Scams Is Not Professional Advice
This article on charity scams is for general interest only and does not constitute professional legal or financial advice. I'm neither a lawyer, nor an accountant, nor a security or fraud expert, so not able to provide this, and I cannot write guidance that covers every charity or eventuality. I have included links to relevant help and support from those who are, which you must check to ensure that whatever you create reflects correctly your charity’s needs and your obligations. In using this resource, you accept that I have no responsibility whatsoever from any harm, loss or other detriment that may arise from your use of my work. If you need professional advice, you must seek this from someone else. To do so, register, then login and use the Help Finder directory to find pro bono support. Everything is free.
