(844) 845-4219
charity fraud

Charity Fraud: Protecting Yourself and Your Donations » Identity Theft Protection » Charity Fraud: Protecting Yourself and Your Donations



Charitable organizations and disaster relief efforts provide vital support to communities in need. However, there are unscrupulous individuals who take advantage of people’s generosity and exploit tragic events for personal gain. In this article, we will explore the concerning issues of charity fraud and disaster fraud, understand their implications, and learn how to protect ourselves and ensure our donations reach the intended recipients.

Like millions of people around the world, you’ve probably been moved by the suffering, despair, and displacement of the people of Ukraine caused by Russia’s ongoing invasion. So, of course, you want to do whatever you can to help. That usually means donating money to a charity that can send necessities, supplies, or services to the Ukrainian people.

But taking out your credit card to donate to the first charity you find could be a mistake. Not all charities and organizations claiming to help people in Ukraine are what they claim to be. Others can’t live up to their well-intentioned promises.

Charity fraud refers to deceptive practices that exploit the generosity of individuals and organizations. Fraudsters manipulate people’s emotions, leveraging their desire to make a positive impact on society. Unfortunately, charity fraud is not uncommon, and it poses a significant threat to both donors and legitimate charitable organizations.

“Scammers set up fake charities that look and sound like real ones to try to get your money,” according to the Federal Trade Commission (FTC). “Millions of people want to support the Ukrainian people. If you’re one of them, take a moment to make sure your generosity really benefits the people and groups you intend.”

In this article, we will explore the common types of charity fraud, red flags to identify fraudulent activities, the consequences it brings, and how you can protect yourself from falling victim to these scams.

Charity fraud is a deceitful practice that takes advantage of people’s goodwill and desire to help others. It involves the misappropriation or misuse of funds intended for charitable purposes, causing financial loss to donors and undermining the efforts of legitimate charitable organizations.

Common Types of Charity Fraud

  1. Fake charities: Fraudsters create fictitious organizations or use names similar to well-known charities to deceive potential donors. They often launch campaigns during natural disasters or holidays when people are more inclined to donate.
  2. Misuse of funds: Some individuals or organizations establish legitimate charities but misappropriate the funds for personal gain. They may use the money for luxurious expenses, instead of channeling it towards the intended beneficiaries.
  3. Telemarketing scams: Fraudsters use telemarketing as a means to solicit donations for non-existent or questionable charitable causes. They employ high-pressure tactics, often preying on vulnerable individuals, and manipulate them into making donations.
  4. Online scams: With the rise of technology, charity fraud has extended its reach to the digital realm. Fraudulent websites, social media campaigns, and crowdfunding platforms are used to collect donations, but the funds never reach those in need.

Red Flags to Identify Charity Fraud

To protect yourself from falling victim to charity fraud, it’s crucial to recognize the warning signs. Here are some red flags to watch out for:

  1. Lack of transparency: Legitimate charities are usually transparent about their mission, goals, and financial information. If a charity is reluctant to provide clear information about how they use donations or where the funds go, it should raise concerns.
  2. High-pressure tactics: Fraudsters often employ aggressive and coercive tactics to push people into making immediate donations. Legitimate charities respect your decision-making process and don’t use forceful techniques to obtain funds.
  3. Suspicious payment methods: Be cautious when asked to donate using unconventional payment methods such as wire transfers, prepaid gift cards, or cryptocurrency. Legitimate charities typically offer secure and recognized payment options.
  4. Lack of accountability: Reputable charities are accountable for their actions and have systems in place to ensure donations are used as intended. If a charity cannot provide a clear breakdown of how funds are utilized, it’s a warning sign of potential fraud.

The Consequences of Charity Fraud

Charity fraud not only harms donors but also has severe repercussions on legitimate charitable organizations and the broader community. Consider the following consequences:

  1. Financial loss for donors: Individuals who fall victim to charity fraud not only lose their hard-earned money but also experience feelings of betrayal and disillusionment. It erodes trust in the charitable sector and discourages future donations.
  2. Damage to legitimate charities: Charity fraud casts a shadow of doubt over all charitable organizations, making it more challenging for legitimate causes to gain support. The actions of a few dishonest individuals taint the reputation of the entire sector.
  3. Legal repercussions for fraudsters: Engaging in charity fraud is a criminal offense in many jurisdictions. Fraudsters can face legal consequences, including fines, imprisonment, and court-ordered restitution.

Protecting Yourself from Charity Fraud

While charity fraud exists, it doesn’t mean you should stop supporting causes you care about. By taking the following steps, you can protect yourself and ensure your donations reach the intended beneficiaries:

Research the organization

The FTC recommends doing an online search using the name of the charitable organization and the words “scam,” “complaint” or “review.” Look up the organization or find a different one at watchdog groups such as:

Find out how funds will be spent

If you’re donating to the organizations’ website, look for information specifically on how donated money will be spent to help Ukrainians. If someone calls asking for a donation, ask how donations will be spent and then research the organization before donating.

Find out how quickly the charity can help

You probably want your donation to benefit the Ukraine people right away. So, make sure the charity you donate to can get started immediately to help people in crisis. “See if the charity already has a presence in Ukraine,” recommends the BBB.

Donate to a charity with disaster relief experience

The BBB suggests choosing an organization that’s experienced in disaster relief. “Experienced disaster relief charities are the best bet to help deliver aid as soon as possible,” says the BBB.  “New entrants may have difficulty in following through even if they have the best of intentions.”

Watch out for exaggerated claims

If a charity or other organization claims that one hundred percent of all donations will be spent on relief to Ukraine, don’t be too quick to pull out your credit card. That may be a promise the charity can’t keep, according to the BBB.

While much of your donation may go directly towards helping Ukrainian people displaced or suffering in other ways due to the crisis, most charities have at least some administrative expenses for staffing, fundraising and other costs.

Before donating, ask what percentage of your donation will be used to help the Ukraine people and exactly how donations will apply.

Avoid giving food and clothing

Your food, clothing and other hands-on donations to disaster relief in the U.S. may have made it to the people in need, but these kinds of donations to an organization helping the people of Ukraine is a different story.

It may have been feasible to load up a truck in Oklahoma to transport household sundries, clothing and other items to disaster relief victims in Louisiana or Florida, but getting essential items to a war-torn country in another part of the world is more difficult.

“Local drives to collect clothing and food to send overseas may not be practical as the logistics and timing to deliver and disperse such items will be challenging,” says the BBB. “Relief organizations are better equipped to obtain what is needed, distribute it effectively and avoid duplication of effort.”

Check the charity’s BBB trustworthiness

Look up the charity you have in mind at the BBB Wise Giving Alliance, where you can find an evaluation report of the organization’s trustworthiness if the charity is listed The BBB also provides this list of charities soliciting donations for Ukraine relief that meet the BBB Standards for Charity Accountability.

Reporting Charity Fraud

If you encounter charity fraud or suspect fraudulent activities, it’s crucial to report them. By doing so, you help protect others and hold fraudsters accountable. Consider the following reporting options:

  1. Contacting relevant authorities: Report the incident to your local law enforcement agency, providing them with all the relevant details and evidence you have gathered.
  2. Reporting to consumer protection agencies: Inform consumer protection agencies, such as the Federal Trade Commission (FTC) in the United States, about the fraudulent activity. They have resources and mechanisms to investigate and take action against scammers.
  3. Sharing information with others: Raise awareness by sharing your experience with friends, family, and online communities. Informing others about specific scams can help prevent further victims from falling into the same trap.

Charity Fraud FAQ’s

How can I verify if a charity is legitimate?

To verify a charity’s legitimacy, check if they are registered with relevant government agencies or watchdog organizations. You can also review their financial reports and independent evaluations.

Is donating online safe?

Donating online can be safe if you take necessary precautions. Ensure you are on a secure website, use trusted payment methods, and research the organization’s credibility before making a donation.

Can I get my money back if I donated to a fraudulent charity?

Unfortunately, it is often difficult to recover money donated to fraudulent charities. That’s why it’s important to conduct research and donate to reputable organizations.

What legal actions can be taken against charity fraudsters?

Engaging in charity fraud is a criminal offense, and fraudsters can face legal consequences such as fines, imprisonment, and court-ordered restitution.

How can I report charity fraud?

You can report charity fraud by contacting your local law enforcement agency and consumer protection agencies such as the Federal Trade Commission (FTC) in the United States. Additionally, sharing information with others can raise awareness and prevent further victims.


Charity fraud is a serious issue that undermines the trust and goodwill of donors while impeding the work of legitimate charitable organizations. By understanding the common types of fraud, recognizing red flags, and taking proactive measures to protect yourself, you can ensure that your donations make a meaningful impact. Stay vigilant, research charities thoroughly, and report any suspicious activities to help combat charity fraud and support genuine causes.

How Much Could You Save?

Just tell us how much you owe, in total, and we’ll estimate your new consolidated monthly payment.