As a veteran myself, I support different charities that support those who served in our armed forces, and appreciate others that do as well. Sadly, there are scammers out there ripping people off who want to help our nation’s veterans. Make sure the veteran’s charity you work with does what it says it will do.
Just this summer the Federal Trade Commission (FTC) along with state and charity regulators announced a crackdown on charities that pretend to aid veterans and current service members. Here are a few recommendations to help you donate to charities that help veterans, current service members, and their families.
Research the organization on line. One way to find additional information is to enter the name of the organization along with words like “scam,” “report,” “complaint,” or “review” to see what has been written about them. There are those that file fake complaints and reports, so use some common sense when doing your research. According to the FTC, you an look up ratings and reports about how charitable organizations spend donations and conduct business on Charity Navigator, Charity Watch, and GuideStar.
Check Form 990. Form 990, Return of Organization Exempt From Income Tax, requires an organization to describe its mission or other significant activities, then disclose financial details on its revenues, expenses, assets, and liabilities. By law, tax-exempt status is revoked when an organization does not file required Form 990-series returns or notices annually for three consecutive years. Forms 990, 1023, and 1024 (applications for exemption) are open for public inspection via IRS Form 4506-A.
The IRS has a Tax Exempt Organization Search. This on-line search tool allows users to search for certain information about an exempt organizations federal tax status and filings. It can tell you if your donation would be tax deductible. IRS SEARCH TOOL
State Charity Regulators. Most states require the charity or its fundraiser to register to ask for donations. The National Association of State Charity Officials has a list of state regulators under the “Resources” tab.
Never pay by cash, gift card, or wire transfer. Scammers usually ask victims to pay using these means. To be on the safe side, insist on making an in-person payment by check or credit card at an organization’s physical location.
Scammer Tactics
- Spoofing caller IDs to make calls look like they’re coming from your area code, Washington D.C., or an organization you know.
- Misusing real pictures and stories of veterans to get you to donate on social media and crowdfunding sites.
- Using names that include words like “hero,” “operation,” “wounded,” “veteran,” or “disabled.” (Legitimate charities also use these terms.)
- Claiming that you will win a sweepstakes or prize if you donate, which is against the law.
- Pressuring you to act now or guilting you into giving money.
(Thanks to the article “21-Scam Salute” by Amanda Horowitz in Costco Connection, November 2018 as the resource for this page.)