The Info List - Charity Fraud

--- Advertisement ---

Charity fraud is the act of using deception to get money from people who believe they are making donations to charities. 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 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.


1 Examples 2 Prevention in the United States of America 3 Contrast with badge charity 4 See also 5 References 6 External links


On April 20, 1918, The New York Times 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.[1] 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.[2]

Prevention in the United States of America[edit] There are controls and laws governing charities and businesses that accept donations. The Internal Revenue Service (IRS) with the Better Business Bureau (BBB) has regulations that can be found on their websites. The United States Federal Bureau of Investigation
Federal Bureau of Investigation
(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.[3] Contrast with badge charity[edit] 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. See also[edit]

Helping Hand Charities Confidence trick


^ "Charity Fraud
Pleads Guilty." The New York Times. 20 April 1918. Web. 3 March 2010.<https://query.nytimes.com/gst/abstract.html?res=9D02E2DD1F3FE433A25753C2A9629C946996D6CF&scp=2&sq=charity%20fraud&st=Search>. ^ McFadden, Robert. "Small-Change Donations Going to Vendors, Not Charities, Abrams Charges." The New York Times. 12 11 1992. Web. 13 Feb 2010.<https://www.nytimes.com/1992/11/13/nyregion/small-change-donations-going-to-vendors-not-charities-abrams-charges.html?scp=1&sq=Small-Change%20Donations%20Going%20to%20Vendors,%20Not%20Charities,%20Abrams%20Charges&st=cse>. ^ National Charity Seal Program Archived March 5, 2010, at the Wayback Machine.

External links[edit]

US: U.S.(FTC.gov) information regarding charity fraud US: Charity Navigator's giving tips including the Top 10 Best Practices of Savvy Donors US: The American Institute of Philanthropy [1] and the Better Business Bureau's Wise Giving Alliance can also be consulted. UK: use the Charity Commission to find out if the organisation you want to support is formally registered.

Its Inquiry Reports list and give details on its latest investigations

UK: Intelligent Giving gives an independent analysis of a charity's transparency for prospective donors(UK)

Rumours about fraud and related activity are discussed in its Watchdog section

Charity On Trial: What You Need To Know Before You Give by Doug White 1 US: [2] Life Cycle of an Exempt Organization US: [3] Standards for Charity Accountability US: [4] Haitian Earthquake Relief Fraud
Alert US: [5] National Charity Seal Program

v t e

Types of fraud


Billing Cramming Disability Drug / Pharmaceutical Email Employment Fixing Impersonation Intellectual property Internet Job Long firm Odometer Phone Quackery
/ Health care Racketeering Return Tech support Slamming Telemarketing


Marriage Paternity


Advance-fee (Lottery scam) Bank Bankruptcy Chargeback Cheque Credit card Forex Insurance Mortgage Securities Shill
bidding Tax


Benefit Electoral Medicare Visa Welfare

Other types

Affinity fraud Charity Confidence trick Counterfeiting Faked death Forgery Hoax Impersonation Mail and wire (honest services) Romance

Bride scam

Scientific Spyware White-collar crime

v t e

Scams and confidence tricks


Confidence trick Error account Shill Shyster Sucker list

Notable scams and confidence tricks

Advance-fee scam Art student scam Badger game Bait-and-switch Black money scam Blessing scam Bogus escrow Boiler room Bride scam Bullet-planting scheme Charity fraud Clip joint Coin-matching game Coin rolling scams Drop swindle Embarrassing cheque Employment scams Extraterrestrial real estate Fiddle game Fine print Foreclosure rescue scheme Foreign exchange fraud Fortune telling fraud Gas leak phone call scam Gem scam Get-rich-quick scheme Green goods scam Hustling Initial coin offering Intellectual property scams Kansas City Shuffle Long firm Miracle cars scam Mock auction Moving scam Patent safe Pig in a poke Pigeon drop Priority Development Assistance Fund scam Pump and dump Reloading scam Rent-a-car scam Salting Shell game Sick baby hoax Slavery reparations scam Spanish Prisoner Strip search phone call scam Swampland in Florida Technical support scam Telemarketing fraud Thai tailor scam Thai zig zag scam Three-card Monte Trojan horse White van speaker scam Work-at-home scheme

Internet scams and countermeasures

Avalanche Carding Catfishing Click fraud Clickjacking Cramming Cybercrime CyberThrill DarkMarket Domain name scams Email authentication Email fraud Internet vigilantism Lottery scam PayPai Phishing Referer spoofing Ripoff Report Rock Phish Romance scam Russian Business Network SaferNet Scam baiting ShadowCrew Spoofed URL Spoofing attack Stock Generation Voice phishing Website reputation ratings Whitemail

Pyramid and Ponzi schemes

Aman Futures Group Bernard Cornfeld Caritas Dona Branca Ezubao Foundation for New Era Philanthropy Franchise fraud High-yield investment program (HYIP) Investors Overseas Service Earl Jones (investment advisor) Kubus scheme Madoff investment scandal Make Money Fast Matrix scheme MMM Petters Group Worldwide Pyramid schemes in Albania Reed Slatkin Saradha financial scandal Scott W. Rothstein Stanford Financial Group Welsh Thrasher faith scam


Con artists Confidence tricks Criminal enterprises, gangs and syndicates Email scams Impostors In the media

Film and television Literature