How to Avoid Scams When Donating to Charity

ROCKFORD, Ill. (WIFR) – As the holiday season approaches, donating to organizations and charities can seem like an easy gift to give to the community.

It’s important to be aware of risks, scams, and resources to help you avoid them and make sure you’re giving your money to legitimate organizations.

Among them are the Northern Illinois Community Fundraising Organization and the Better Business Bureau in Rockford.

According to Dennis Horton, senior director of the Rockford Regional Office of the Better Business Bureau, simple ways to avoid scams include not using links in emails or text messages you receive. If you are interested in donating to this organization, visiting the website yourself can save you a lot of hassle. If the request is very urgent, this is also a sign of fraud. “If an organization or charity needs money today, they will need it tomorrow,” Horton said.

“If you receive a charity request and they ask you to pay with an unusual form of payment, such as cryptocurrency, or force you to go to a store and buy a gift card to make that donation, you are dealing with a scammer,” Horton said. “Sometimes we see that instead of the American Red Cross, it becomes the National Red Cross. So, you look up the name of the organization to make sure it’s the name of the organization you want to donate to.”

If you make it before December 31st, the donation will also qualify you for tax credits in 2025.

“If you’re only considering this for tax purposes, then it’s a good idea to talk to your tax advisor. Most tax advisors will tell you that if you want it to count for that particular tax year, you’ll have to file it before the end of the year,” said Dan Ross, president of the Community Foundation of Northern Illinois.

Ross said donating to local organizations and charities also reduces the risk of fraud. Rockford has the advantage of having many local and charitable organizations that can accept donations and qualify for tax deductions.

501(C)(3) organizations are generally eligible for tax deductions. Ross said schools and hospitals are also eligible for the tax deduction by default.

Other resources include Wise Giving Alliance, Charity Navigator and guidestar.org.

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