Charity fraud is the act of using

deception Deception or falsehood is an act or statement that misleads, hides the truth, or promotes a belief, concept, or idea that is not true. It is often done for personal gain or advantage. Deception can involve dissimulation, propaganda and sleight o ...

to get money from people who believe they are making donations to a

charity Charity may refer to: Giving * Charitable organization or charity, a non-profit organization whose primary objectives are philanthropy and social well-being of persons * Charity (practice), the practice of being benevolent, giving and sharing * Ch ...

. Often a person or a group of people will make material representations that they are a charity or part of a charity and ask prospective donors for contributions to the non-existent charity. Charity

fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...

not only includes fictitious charities but also deceitful business acts. Deceitful business acts include businesses accepting donations and not using the money for its intended purposes, or soliciting funds under the pretense of need.

Examples

*On April 20, 1918, ''

The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...

'' published an article about a charity fraud committed by the Secretary of the Cripples' Welfare Society, George W. Ryder. Ryder pleaded guilty to using mail fraud to use the donations for his personal gain. *On November 13, 1992, ''The New York Times'' released an article about fraudulent solicitations supporting a cause. Often, beside the cash register in stores, a collection is taken for a charity or for people in need. Although there have been many store owners that legitimately donate the spare change to the specified charity, there are a few who act fraudulently. In this specific case, the small-change donations were being kept by the vendors. The article states that the vendors paid a $2 per month fee to use the charity's name. *After Hurricane Ian in the U.S. in 2022, the FBI Tampa Bay office warned that charity fraud scammers were at work, going door to door and making phone calls.

Prevention in the United States of America

There are controls and laws governing charities and businesses that accept donations. The

Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory ta ...

(IRS) with the

Better Business Bureau Better Business Bureau (BBB) is a private, 501(c)(6) nonprofit organization founded in 1912. BBB's self-described mission is to focus on advancing marketplace trust, consisting of 97 independently incorporated local BBB organizations in the Unit ...

(BBB) has regulations that can be found on their websites. The United States

Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...

(FBI) provides online information about avoiding charity fraud, such as fraudulent schemes that emerge in the wake of natural disasters, claiming to be providing disaster relief. The Internet Crime Complaint Center maintains a list of guidelines to avoid charity fraud when making a donation. It is advised that people should follow certain guidelines when they donate and that they should consult a list such as the one on the BBB's website. This list includes the participants in the BBB Wise Giving Alliance's National Charity Seal Program. Participants have met standards for charity accountability and may, for a fee, display the seal logo on their websites as well as any other printed documents.

Contrast with badge charity

Charity fraud is distinguished from badge charity in which the charity does exist, but an inordinate percentage the funds donated are absorbed by professional fundraisers and operating expenses of the charity rather than the causes described in solicitations.

References

External links

United States: *

'
Wise Giving Alliance
*

CharityWatch CharityWatch, formerly known as the American Institute of Philanthropy (AIP), is a 501(c)(3) nonprofit organization in Chicago, created in the United States by Daniel Borochoff in 1992, to provide information about charities' financial efficiency ...

br>Charity Ratings
*

Charity Navigator Charity Navigator is a charity assessment organization that evaluates hundreds of thousands of charitable organizations based in the United States, operating as a free 501(c)(3) organization. It provides insights into a nonprofit’s financial s ...

's giving tips including th
5 Steps to Informed Giving

Federal Trade Commissiojn - Charity Fraud

Give.org BBB Standards for Charity Accountability

Haitian Earthquake Relief Fraud Alert

IRS: Life Cycle of an Exempt Organization

National Charity Seal Program
United Kingdom:
Charity Commission
- find out if a charitable organisation is formally registered {{Scams and confidence tricks Fraud Fraud

Examples

Prevention in the United States of America

Contrast with badge charity

See also

References

External links