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Charity Scams: 5 Ways To Avoid Giving To Fraudulent Causes This Holiday Season (SLIDESHOW)

First Posted: 12/22/11 09:15 AM ET   Updated: 12/22/11 09:15 AM ET

At a time when a record number of families are facing poverty and donations are down across the charity board, nonprofits are eagerly looking to the giving season for a much-needed contribution boost. But, scammers are also fired up to for the holiday season, a time when they can lure generous donors into their charity schemes.

"Every individual gift, every charitable dollar is more precious to these charities than ever before," Ken Berger, CEO of Charity Navigator, told the Huffington Post. "Making the right decision, that you get to the high performing nonprofits...is really important."

The Huffington Post sat down with the CEO of Charity Navigator, an organization that rates nonprofits' effectiveness, to find out which common scams to look out for this holiday season.

SLIDESHOW:

Avoid Sound-Alike Charities
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Even if an organization has the words "Cancer" or "Salvation" in the name, doesn't mean that it's legitimate. Oftentimes scammers will just change one word of a well known charity to trick donors into giving to the fake organization that they've set up. "It sounds great, it sounds very similar to an organization you intended to give to," Berger said. "You get entrapped there."
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At a time when a record number of families are facing poverty and donations are down across the charity board, nonprofits are eagerly looking to the giving season for a much-needed contribution boost.
At a time when a record number of families are facing poverty and donations are down across the charity board, nonprofits are eagerly looking to the giving season for a much-needed contribution boost.
Filed by Eleanor Goldberg  | 
 
 
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averagezoe
Don't breed or buy while homeless animals die!
11:28 PM on 12/24/2011
Since I spend 50% of my annual income on my own animal rescue efforts, I never have anything left to give. But even if I did, I would not want to contribute to large organizations because I have doubts that the money is really put to its intended use. I do give whatever cash I happen to carry to homeless people when I pass them on the street and I volunteer at a "soup kitchen" on Christmas Day, but that's the extent of my human charity. People who actually have money to give should use the direct approach - give to your local animal rescues, homeless shelters that actually have programs to help the unfortunate back on their feet and also to local food banks. At least then you know that your donations have actually helped someone and made a difference.
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Ossit
Ossit
08:30 AM on 12/24/2011
And don't anyone demand of me what I'm doing for the Poor. I'm Poor barely able to survive. Each day it's a miracle that I can turn on this computer and have electric. Each month I'm grateful that I've got some bills paid which are now starting to pile up. When I can fully get back on my feet will I be able to give to them.
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Ossit
Ossit
08:26 AM on 12/24/2011
You really want to help the Poor with your charity money? Here's a thing you should do for once. Write your check or give cash and not run home so you can put on your donation as a tax deduction so you can benefit! Help the Poor because it's the right thing to do not for a special back pat aren't you so noble. Stop demanding that those who need Welfare be forced to eventually take a drug test when you don't need to, to get a benefit and stop automatically assuming every Poor is a deadbeat and scammer! Stop acting like the the Poor never work just because you prefer to lump the non working ones to those who do. I'm not talking about the Middle Class "working poor" I'm talking about the real Poor. Stop acting like the Poor should segregate themselves in some clinic so you don't see or hear from them, acting like ER's are only there for you.

Charity is more than just giving money. Charity is giving a kind word to those who have it far worse than you 24/7 all year. Charity is not staring at Poor like they're some zoo animal fit for your judgement. Charity is not acting like the Poor only exist during the holidays.Frankly I hate the demeaning word of charity. It reminds me of people throwing peanuts to an elephant. We Poor are people, not charity cases.
03:50 PM on 12/23/2011
If you're giving it away, then obviously, you don't want it; so why should you worry about where it goes? You're still helping someone whether it goes to some homeless guy or some random kids in Afrostan or whatever.
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french queen13
my beloved is mine and I am his
09:14 PM on 12/24/2011
Um, no. Giving money unwittingly to thieves isn't helping anyone in need. You might as well say it's the same giving money to some uber-wealthy person's holiday fund as it is to a charity that actually helps people or animals in need.
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Bluelynx
11:40 AM on 12/23/2011
For charitable giving, I stick to a local animal shelter. I once adopted a litter of kittens from there so I know my gift does a lot of good.
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HUFFPOST SUPER USER
Souldrifter
Newton's 3rd Law of Motion: Not just for physics.
10:23 AM on 12/23/2011
While not a scam, per se, also beware of giving your money to the Salvation Army if you're against discrimination. http://usnews.msnbc.msn.com/_news/2011/12/01/9143097-gay-groups-boycott-salvation-army-red-kettle-drive
07:02 PM on 12/23/2011
Not a big supporter in gay rights, then again i never give to the red bucket any ways. I'd rather give directly to the needy, charitys seem fishy to me, always have. Dont get me started on habitat for humanity.
11:44 PM on 12/23/2011
I do not give to Salvation Army anymore as they give money to Planned Barrenhood. :-P
10:04 AM on 12/23/2011
Visit give.org or charitynavigator.org. Both offer ratings on hundreds of charities, including the percentage of your money that actually goes to programs.

It's a good practice to budget and plan your giving. Decide what kind of charitable activity you want to support, research the options on one of these sites, and budget a yearly amount. Then give to your selected charities at some time other than the Christmas season. They experience a peak in donations right now, but they need money all year.

I'm a supporter of the International Rescue Committee (founded by Albert Einstein), which is a very efficient refugee assistance and anti-poverty organization.
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Matt Lindner
My micro-bio is empty
09:14 AM on 12/23/2011
The Human Fund. Money for People.
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HUFFPOST SUPER USER
Bob Wagner
08:59 AM on 12/23/2011
This is something you should remember 365 days of the year really. The scammers and crooks are out there, just waiting for the unsuspecting and trusting. And remember, just because Newt Gingrich's face is on it, even if it's REAL, don't do it, it's just something he's doing to pad his own pockets.
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HUFFPOST SUPER USER
NIC10
The things Liberals say! Amazing!
09:24 AM on 12/23/2011
If you dont have some proof of this statement it could be construed as slander!
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french queen13
my beloved is mine and I am his
09:15 PM on 12/24/2011
Newt's face on anything would be an excellent reason to avoid it, I'd have thought!
dent7777
to be or not to be...I be
08:55 AM on 12/23/2011
I have a tendency to help local people I know such as peeps with a family member in the hospital or hungry or after a fire excetera....
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Counterglow
Werner Heisenberg may have been right.
08:50 AM on 12/23/2011
I'd add Mothers Against Drunk Driving to the list. They deliver a low percentage of the money they make to independent programs that produce documentable results, And I know for a fact that they solicit illegally, because I was right in the room when they attempted a telephone solicitation at a time specifically forbidden by law.
04:37 PM on 10/11/2012
Go ahead and add "gay awareness" to the list of scam charities. There are kids with cancer, and people are blowing their money on lavish parties and going "Look! A gay! Be more aware of them!"
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HUFFPOST SUPER USER
Retromancer
PLEASE INSERT COIN
08:41 AM on 12/23/2011
St. Jude Children's Research Hospital gets my vote/donations. I can't spend 3 minutes on their site without being reduced to tears, just thinking about the hardships those young, brave souls must endure.
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08:03 AM on 12/23/2011
I like St. Jude myself.
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caland
SOCIALISM IS AWESOME
05:36 AM on 12/23/2011
DO NOT DONATE TO THE SALVATION ARMY. The money goes straight back into their religious organization. They are a shady business not a charity. Give to The Richard Dawkins Foundation for Reason and Science. They actually do use the funds donated to them for good purposes.
06:15 AM on 12/23/2011
That is BS caland. I see tons of people every single day that go to the local Salvation Army here in my town for help. Many that are homeless and hungry. When the tornado hit my town the Salvation Army was the salvation for many families.
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Linh Nguyen
05:13 AM on 12/23/2011
Chances are, the bigger and more organize the charity is the more someone is profiting off of your charities. When the CEOs like Red Cross' Marsha Evans who makes $650,000 a year and UNICEF's CEO who makes $1.2mil a year when it's suppose to be a charity organization pretty much tells you even the mainstream charities are nothing more than top level management greedy corporation. Honestly, I would never give money to those kind of charity.