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Holiday donation scams overview:
- Who: Consumers should be on the lookout for donation scams during the holiday season.
- Why: The Federal Communications Commission warns that scammers target consumers during the holiday season to try to steal money and personal information using holiday donation scams.
- Where: Holiday donation scams occur nationwide.
The holiday season is in full swing, and consumers across the country are shopping for decorations and gifts. In some households, this also means donations to spread cheer and help those less fortunate.
Unfortunately for consumers, annual holiday donations also bring the possibility of donation scams as bad actors attempt to deceive the well-intended into placing their charity into the wrong hands.
“Unfortunately, scammers view the holiday season as an opportunity to take advantage of that giving spirit,” the Federal Communications Commission (FCC) warned consumers in December 2020.
The FCC alerted consumers to be aware of bad actors attempting to defraud them during the holiday season using methods such as bogus phone calls or fake charities designed to steal money or personal information.
A total of 75% of consumers in the United States have been targeted with some form of fraud connected to the holiday season, the AARP reports.
FCC advises consumers to only donate to trusted, well-known charities
The FCC advises consumers to only make donations to trusted and well-known charities and to verify their authenticity by looking at their official websites and checking with companies such as the Better Business Bureau.
Further, consumers should not open suspicious emails or click links or open attachments within them because they may contain malicious spyware used by scammers conducting phishing attacks.
“Scammers can be very convincing. We advise that you play it safe and hang up on unsolicited calls seeking donations or requesting personal information,” the FCC says.
Top charities judged on financial performance, popularity, transparency
Despite the threat of scammers during the holiday season, there is ultimately no shortage of reputable and highly-rated charities based on financial performance, popularity and overall transparency.
When choosing a charity to donate to, consumers should first choose a cause they want to support and then research specific organizations dedicated to helping in that area, WalletHub reports.
Consumers should also ask for recommendations when choosing a charity, including from experts in those fields who may be more aware of what organizations are held to the highest regard.
Toys for Tots Foundation, World Central Kitchen among top-rated charities
Some of the highest-rated charities to donate to this year include, among others, the Animal Welfare Institute, for helping animals; All Hands and Hearts, for help with disaster relief; World Central Kitchen, for help with hunger; and the Marine Toys for Tots Foundation, according to WalletHub.
Charities with a low rating, meanwhile, include Gentle Giants Draft Horse Rescue, Heritage for the Blind, Childhood Leukemia Foundation and Defeat Diabetes Foundation, according to Consumer Reports.
When making a holiday donation, consumers should also pay attention to how their gift can affect their own personal finances, according to WalletHub.
A consumer may ultimately want to map out a reasonable gift-giving budget, make a decision on whether they are planning on itemizing deductions come tax season and consider processing fees if making a donation using a credit card.
Have you been a victim of a donation scam? Let us know in the comments!
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One thought on Follow the money: How to avoid donation scams around the holidays
I don’t understand why Gentle Giants has a low rating. I’ve known them for years and been to their facility when I took a trip to Maryland a few years ago. My daughter fostered a horse with them and they helped with transportation cost to take two drafts out after a fire here in our location. Those two have since been homed together with wonderful people and we can still visit and see they are doing well. I’m comfortable with donations knowing they are going for sponsoring drafts that will stay there forever due to needs, feeding, care, and buying horses from slaughterhouses. Christine is amazing as well as her staff. This article should have given the reasons consumers mentioned them.