7 ways to avoid getting scammed by a ‘charity’ this holiday season
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A few years ago, a heart-wrenching story from New Jersey captured the nation’s attention. A couple, Katelyn McClure and her boyfriend launched a fundraiser to help a homeless man claiming he had used his last $20 to assist McClure when she ran out of gas. The tale struck a chord with thousands, leading to an overwhelming response on GoFundMe where donors contributed a staggering $400,000. However, this touching story soon unraveled, exposing a shocking scam. The money disappeared, and it was revealed that the couple had fabricated the entire narrative. Their deception ultimately landed them both in prison, serving time for their fraudulent actions.
This cautionary tale highlights the need for doing copious research when donating to charitable causes, particularly during the holiday season when people are most inclined to give. While countless organizations and individuals genuinely need help, there are also those who exploit goodwill for personal gain. To ensure your donations make a real difference, here are some essential tips to avoid scams and protect your generosity.
Before donating to any organization, start by confirming its legitimacy through the IRS's Tax-Exempt Organization Search tool. This resource allows you to check whether the charity is recognized as a tax-exempt entity under Section 501(c) of the Internal Revenue Code.
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Additionally, confirm that the organization is eligible to receive tax-deductible contributions. These two questions........
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