Charity fraud, also known as a donation scam, is the act of using

deception Deception is the act of convincing of one or many recipients of untrue information. The person creating the deception knows it to be false while the receiver of the information does not. It is often done for personal gain or advantage. Tort of ...

to obtain money from people who believe they are donating to a

charity Charity may refer to: Common meanings * 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 sha ...

. Often, individuals or groups will present false information claiming to be a charity or associated with one, and then ask potential donors for contributions to this non-existent charity. Charity

fraud In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...

encompasses not only fictitious charities but also deceptive business practices. These deceitful acts by businesses may involve accepting donations without using the funds for their intended purposes or soliciting funds under false pretenses of need.

Examples

*On April 20, 1918, ''

The New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...

'' 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 Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administerin ...

(IRS) has regulations that can be found on its website. The United States

Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic Intelligence agency, intelligence and Security agency, security service of the United States and Federal law enforcement in the United States, its principal federal law enforcement ag ...

(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.

References

{{Scams and confidence tricks Fraud Fraud

Examples

Prevention in the United States of America

See also

References