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Joanne's Nonprofits Blog

By Joanne Fritz, About.com Guide to Nonprofits

Donors Scared of Scammers

Wednesday June 7, 2006
According to an article in a recent AARP Bulletin, well-meaning donors have been scammed out of $10 million by bogus charities posing as needy policemen and fire fighters.

AARP provides the following tips for avoiding these scams:

  • Get printed materials from the charity before donating. Fly-by-night scammers are not likely to have any materials.
  • Never provide a credit card or bank account number over the phone unless you initiated the call.
  • Never respond to email solicitations unless you know the organization personally.
  • Be aware that bogus charities may use names that mimic those of well-known organizations.
  • Go to CharityNavigator.org, or GuideStar.org to identify legitimate charities.
  • Contact your state attorney general or secretary of state to learn which charities are licensed to operate in your area...or to report suspicious solicitations.

Given the need for the public to be on the alert for scammers, what can a legitimate nonprofit do to reassure potential donors when mailing, calling or sending email? We have some tips for email but here are three principles of good communications that should keep you out of trouble:

  • Never solicit strangers. Build your list with people who have had prior contact with your organization such as previous donors, volunteers, people you serve, and other friends.
  • Build a relationship before asking. Send your list (mail or email) material and information that is not a solicitation before you ever ask for a donation.
  • Provide many ways of donating when you do ask. Let donors give by phone (they initiate the call), online (with proper security), in person (provide your address in publications and on your website), and by mail.
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