Holiday Charity Scams: How to Make Sure Your Donation Helps

The holiday season is a time of giving. Many people donate to charities in December to help families in need, support local causes, or respond to disasters. Unfortunately, scammers know this too. They create fake charities, use names that sound like real organizations, and pressure people to give quickly. The good news is that a little checking before you give can make sure your money goes to people who really need it.

How charity scams work

Charity scammers usually try to reach you by phone, email, text message, social media, or even at your door. They often:

• Use names that sound almost the same as well-known charities
• Tell emotional stories designed to make you act right away
• Claim your donation is tax-deductible when it isn’t
• Thank you for a “pledge” or donation you never made, hoping you will pay
• Show up right after a disaster or tragedy in the news

The goal is always the same: to get your money before you have time to think.

Watch out for pressure

A real charity will be happy to receive your donation today, next week, or next month. Scammers want you to give immediately. Be careful if someone:

• Insists that you donate right now
• Gets upset or pushy when you ask questions
• Won’t send you written information about the charity
• Calls again and again after you say no

It is always okay to say, “I’d like to look into your organization first.”

Pay attention to how they want to be paid

The payment method is one of the biggest warning signs. Real charities accept checks and credit cards. Be very suspicious if someone asks you to donate with:

• Gift cards
• Wire transfers
• Cryptocurrency
• Cash picked up by a courier at your home

These payment methods are hard to trace and almost impossible to reverse. If a “charity” asks for them, don’t pay.

Research the charity before you give

Before you donate, take a few minutes to check the organization:

• Search for the charity’s name along with words like “scam,” “complaint,” or “review.”
• Look it up on charity rating websites, such as Charity Navigator, CharityWatch, or the BBB Wise Giving Alliance.
• If you want your donation to be tax-deductible, check the IRS Tax Exempt Organization Search tool on the IRS website.
• Find out how much of your donation goes to the actual cause, not to fundraising and administrative costs.

Give directly, on your own terms

The safest way to donate is to contact the charity yourself:

• Type the charity’s website address directly into your browser instead of clicking a link in an email, text, or social media post.
• If someone calls you, hang up and call the charity using the phone number listed on its official website.
• Be careful with QR codes on flyers or signs, since they can lead to fake websites.

Be careful with crowdfunding

Crowdfunding sites make it easy to help individuals and families in need. But not every fundraiser is real. Before you donate, check who created the fundraiser and how they are connected to the person who needs help. It is often safest to give to people you know personally, or to fundraisers shared directly by people you trust.

Keep good records

After you donate, keep a record of the charity’s name, the amount, the date, and how you paid. Check your bank or credit card statements to make sure you were charged the right amount, and only once. Good records also make tax time easier.

What to do if you gave to a scammer

If you think you donated to a fake charity:

1. Contact your bank or credit card company right away and ask if the payment can be stopped or reversed.
2. Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov.
3. Report it to your state’s attorney general or consumer protection office.
4. Watch your accounts for any other strange activity, especially if you shared personal information.

The bottom line

Giving during the holidays is a wonderful tradition, and you shouldn’t let scammers take that away. Take your time, research the charity, avoid unusual payment methods, and give directly through official websites or phone numbers. These simple steps make sure your generosity reaches the people who truly need it.