Thinking about donating money this holiday season? Do these 4 things to not get scammed

As the holiday season rolls in, many will be paying it forward with donations to charities based locally and abroad.

Donating money and goods is a great way to practice philanthropy. However, it's important to watch out for scammers when doing so. Scams can come in many forms, like phone calls, mail-ins, emails and ads, to name a few.

In 2021, the Federal Trade Commission reported more than 190,000 imposter scams took in over $600 million. Although not all of these imposter scams were charity scams, they remain a multimillion-dollar industry.

Doing research through the IRS or Charity Navigator before donating and staying mindful of common scamming tactics is the best way to avoid scams while still giving back.

Kevin Scally, chief relationship officer at Charity Navigator, a nonprofit organization that provides free access to data and tools to help people with their charitable decision-making, spoke to The Arizona Republic about best practices.

Here are four tips for avoiding scams this holiday season:

Research the charity before making a donation

According to Scally, research is an essential step to avoiding potential scams. 

“Before making any donations, research the charity thoroughly. Ensure it is a valid 501(c)(3) organization, these are the only organizations where your donation is tax-deductible,” he said. 

A 501(c)(3) organization is typically referred to as a charitable organization, according to the IRS. For more information on how to verify an organization's tax status, check the IRS website. All nonprofit organizations have an Employee Identification Number that allows donors to identify the organization soliciting funds via Charity Navigator or the IRS’s tax-exempt organization search.

It's always a good idea to look for information about a charity's mission, programs, financial transparency and past projects before donating, Scally said.

More:13 ways to give to charity without breaking your budget

Donate through a trusted source

Donating electronically can seem a bit daunting.

Scally advised people to donate through the charity's direct website and avoid any outside links while donating. It’s important to not make your payment anywhere besides the charity website.

“When making online donations, use secure and trusted payment methods. Avoid sharing your credit card information via email or social media messages," Scally explained.

You can also check if the website is using a secure server by checking the URL: look for the unbroken lock and an "https" and not just "http."

And it never hurts to use a private internet connection, rather than attempting to donate via your favorite coffee shop's Wi-Fi.

Check for high-pressure situations

According to Scally, scammers will often pressure potential donors into making decisions and commitments.

Should you encounter this, Scally advised people to take their time when deciding to donate, as a fast-paced donation environment can be a red flag. If you feel pressured to donate quickly over the phone or email, it might be time to take a step back and reevaluate. 

“Donors should feel empowered to do due diligence before donating, and legitimate charities should respect and appreciate their desire to do research,” Scally said.

Look out for copycat charities

According to Scally, some scammers mimic other charities in order to secure donations.

Using the IRS search tool can help identify properly registered organizations.

“Scammers may use names that closely resemble legitimate charities to deceive donors. Double-check the organization's name and website URL to ensure you are donating to the correct charity,” he advised.