With the rise of crowdfunding sites like GoFundMe and Kickstarter, more and more people are turning to online fundraisers to raise money for various causes or projects. However, this increase in fundraisers also provides an opportunity for scammers and fraudsters to take advantage of generous donors. So how can you tell if an online fundraiser is legitimate or a scam?
What are some signs of a fraudulent fundraiser?
There are several red flags that may indicate an online fundraiser is not legitimate:
- The campaign creator is anonymous or provides very little information about themselves.
- The fundraiser story seems overly dramatic, sensational, or designed to pull at your heartstrings.
- There are grammatical and spelling errors throughout the fundraiser page.
- The photos used seem staged, stock, or suspicious.
- There is no clear explanation for how the funds will be used.
- The fundraiser asks for an unusually large amount of money but provides few details.
- The campaign creator has a history of multiple fundraisers for different purposes in a short time frame.
Scam fundraisers often use emotional pleas, sensational stories, and time pressure tactics to get donors to contribute without scrutinizing the campaign. Always be wary of fundraisers that seem overly dramatic or urgent.
What details should legitimate fundraisers provide?
Reputable fundraisers and nonprofits should provide clear details about who is running the campaign and how the funds will be used. Here are some key details to look for:
- Names, photos, contact info, and background on the campaign organizer(s)
- A clear explanation of the donor’s cause or project goals
- A detailed budget breakdown estimating costs and how donations will help
- Timeline and key milestones for the project or cause
- Any relevant credentials, licenses, certifications of the organizer(s)
- Tax ID number and nonprofit status if claiming to be a registered charity
The more information provided, the more transparency fundraisers show and the more accountable they will be to donors. Legitimate campaigns should have no issues providing details if asked.
How can you verify a charity’s nonprofit status?
If a fundraiser claims to be raising money for a registered nonprofit or charity, make sure to verify they are legitimate by:
- Looking up their Tax ID number on the IRS website to confirm nonprofit 501(c)(3) status
- Checking charity rating sites like Charity Navigator and GuideStar for financial transparency ratings
- Calling the nonprofit’s office to confirm they authorized or are aware of the fundraiser
- Getting the charity’s official website and contacting info to confirm it matches the fundraiser
Knowing a fundraiser is tied to an established nonprofit is reassuring, but be sure to vet them thoroughly through independent sources.
Should you donate to individual fundraisers?
Crowdfunding medical expenses, memorial funds, education costs or other personal needs are popular uses of online fundraisers. These can be legitimate if:
- You personally know or have a trusted connection to the fundraiser organizer
- The organizer provides detailed explanations, cost breakdowns, and verification
- The fund’s impact seems reasonable and donations are appropriately managed
There are risks to donating to strangers or causes you can’t thoroughly verify. Ensure individual organizers seem reputable and honest before contributing.
What are signs of reputable crowdfunding platforms?
The most common crowdfunding platforms like GoFundMe and Kickstarter have measures to identify and remove fraudulent fundraisers, but scams can sometimes slip through. Look for platforms that:
- Have policies requiring campaign verifications and organizer background checks
- Provide secure donation processing and donor protections
- Offer transparency around how funds are delivered to organizers
- Have resources to report suspicious activity and get assistance if scammed
Reputable platforms make efforts to vet fundraisers and ensure donor funds are distributed safely. But ultimately donors themselves need to thoroughly assess any fundraising campaigns.
How can you help report fraudulent fundraisers?
If you come across suspicious activity or believe a fundraiser to be fraudulent, here are important steps you can take:
- Report concerns directly to the crowdfunding platform so they can investigate
- Notify relevant groups like charity watchdog agencies or the Better Business Bureau
- Leave comments on the fundraiser page warning other donors of potential fraud
- File complaints with consumer protection groups or law enforcement if applicable
- Spread awareness on social media and within your community about the suspected fraud
The more people that report fraudulent fundraisers, the less likely scammers can take advantage of others. You can help protect other donors by taking action.
How can donors be smart about contributing to fundraisers?
Here are some tips donors should keep in mind to give wisely:
- Research the organizer, cause, and platform thoroughly before donating
- Use credit cards when possible for fraud protections
- Don’t provide personally identifiable information beyond what is needed
- Ask for explanations and proof if anything seems unclear
- Consider donating to established charities instead of individual causes
- Be wary of emotional pleas and sensational stories used as manipulation
- Trust your instincts – if something seems questionable, it likely is
Being an informed donor is the best way to avoid getting defrauded. Take time to thoroughly vet any fundraisers before providing financial support.
Conclusion
Crowdfunding can be a powerful way to mobilize support and funding for causes that matter. However, the online fundraising model is unfortunately ripe for potential scams and frauds as well. Protect yourself and your donations by being an informed giver. Look for signs of legitimacy, verify nonprofit status, research organizers, use secure payment methods, and report any suspicious activities you encounter. With caution and care, you can still safely contribute to causes and help make a difference.