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Wise Giving Wednesday: Charity Fraud Awareness

As part of our promotion for International Charity Fraud Awareness Week, we posted two advisories this week, one for donors and the other for charities. The outreach is sponsored by an international group of government regulators, law enforcement agencies, charities and other nonprofits that seek to raise awareness about potential fraud directed at either donors or charities. BBB Wise Giving Alliance joined this coalition to help distribute these cautions to inform contributors and the charitable sector about such abuse.

The overwhelming majority of charities conduct their charity fundraising appropriately and do not engage in deceptive practices. There are questionable solicitors, however, that seek to take advantage of generosity and carry out potentially misleading approaches. As a result we advise contributors to watch out for red flags such as excessive pressure in fundraising, vague program descriptions in appeals, and organizations that spend less than 10% of collected funds on their charitable program services. Additional details can be found in our donor advisory

Charities also need to be on guard for deceptive practices directed at them. This can range from phony invoices, cybersecurity data breaches to fake check scams. There are actions that charities can take to help reduce their vulnerability to such efforts. See the charity advisory for more details.

For both of these audiences (charities and donors) there are three basic steps that are featured as part of International Charity Fraud Awareness Week:

  1. Be Fraud Aware. Familiarize yourself with some of the potential abuses so that you can more easily spot them and avoid being taken.
  2. Take Time to Check. This is probably the most important measure to take. For donors, it means going to outside sources such as BBB’s Give.org to verify if the charity meets the BBB Standards for Charity Accountability. For charities it means reviewing such things as their bank statements and verifying vendors before hiring them.
  3. Keep Data Safe.  Donors should review privacy policies on charity websites. Charities should take steps to enhance cybersecurity such as the BBB 5-step approach.

Keep in mind that these cautions about potential abuse should not be used as a reason not to donate. That would be a double tragedy especially during this time of need when many charities are struggling due to the impact of the pandemic on their fundraising and operations. Being on guard does not mean one needs to be suspect of every appeal, you can continue to Give, But Give Wisely ℠.


Video of the Week

As part of the Building Trust Video series, we are pleased to provide a video interview that features Lynn O’Connor Vos, President & CEO, Muscular Dystrophy Association (a BBB Accredited Charity) that works to find a cure for muscular dystrophy and offers multidisciplinary care for individuals and families to help manage disease symptoms. The organization states that it funds research across diseases to accelerate treatments and cures and apply results and knowledge from one disease to achieve progress in other diseases. MDA reports that through its 150 MDA-supported, hospital-affiliated care centers and its field offices, the organization offers medical services, education, and support to patients and their families.


Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance