Published: December 06, 2006 11:23 am         

Beware what you Share this Holiday

Much of the joy of the holiday season rests in the joy of giving. A time to reflect on what you have and what others may not, the holiday season represents the peak of donations for many charities across the country. Unfortunately, the holiday season is often the peak season for fraudulent charities as well.



· Don't think a gift mandates a donation. Many fraudulent charities resort to this approach, sending you mailing labels, calendars or even cards in an effort to get you to reciprocate. While this is also the practice of many legitimate charities, look into any unsolicited gifts from so-called "charities" you've never heard of or never donated to. It's also important to beware of charities that boast a sweepstakes as an incentive to donate. Such sweepstakes often require a contribution as an entrance fee. Reputable charities don't need to resort to these tactics, so any that do might not be legitimate.

· Beware of the name game. Fraudulent charities often adopt similar names to charities you've heard of, in the hopes that you'll hear that like-sounding name and assume it's the same charity. Such was the case in 2005 after Hurricane Katrina, when many fraudulent charities preyed on people's willingness to support hurricane victims. Listen to the name of the alleged charity carefully, and look into it.



One company that rose to the forefront during Katrina was Charity Navigator, a non-profit organization that tries to help people looking to donate money. Charity Navigator (www.charitynavigator.org) aims to help people make intelligent donations and avoid being scammed.



· Don't give in to pressure. A telltale sign of a fraudulent charity is one that attempts to pressure you into giving. A legitimate and worthwhile charity doesn't need to pressure you, as you're likely well aware of its track record. Even if you're not, charities worth your donation will provide you with literature and other information that details their work. Legitimate charities also recognize your need to think over your donation, and won't pressure you into making one on the spot.



· Be wary of over-the-phone giving. While legitimate charities do resort to telephone fundraising, it's often at the expense of the charity. In essence, charities will hire for-profit fundraisers to reel in donations. Those fundraisers will take a cut of your donation. To get around this, if a fundraiser reaches out to you via telephone, ask for all pertinent information, such as a Web address, a mailing address, any materials that can be mailed to you, etc. Once you've read over all other materials, mail the charity a direct check. This will ensure that all of you donation is going to the charity, and not to the fundraiser.