FTC FACTSfor Consumers

Telemarke

ting

Helping Older 

Consumers Avoid 

Charity Fraud

C

harities perform a variety of valuable services in our society. 

Many are facing increases in costs and demands and decreases in 

funding. To meet these financial challenges, charities are asking for larger contributions from more donors — and they’re 

asking more often than they used to, often using telemarketing and direct mail 

solicitations to raise funds for their causes, and often directing their pitches to 

older consumers. In fact, AARP research shows that Americans aged 65 and 

older receive more telephone and mail solicitations for charitable donations than 

any other age group. Fraudsters try to take advantage of this population on the 

theory that older adults may be more trusting and polite toward strangers, and 

that they’re more likely to be home during the day to receive phone calls.

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Facts for Consumers

Chances are you’re in a good position to 

determine whether an older person you care 

for or about is vulnerable to, or has been 

victimized by, a charity scam. Here are some 

clues:

• Does the person get frequent calls or direct 

mail requesting donations? This may indicate that the person’s name has been put on 

a list of willing donors. 

• Does the person make lots of payments to 

charities that you haven’t heard of?

• Is the person having trouble paying for 

regular expenses, even though there’s been 

no change in income? This may indicate 

that too much money has gone to donations. 

Charitable-giving decisions should be one 

element of a person’s overall financial plan.

If you find that the person you care for or about 

is a victim of fraud, carefully explain what has 

happened and that he or she is not at fault. Help 

the person file a complaint with the appropriate 

authorities. By filing a complaint, you may be 

helping stop the fraud. 

The Warnings Signs 

of a Charity Scam

Donors should avoid any charity or fund-raiser 

that:

• refuses to provide written information about 

its identity, its mission, its costs, and how 

the donation will be used;

• will not provide proof that a contribution is 

tax deductible;

• uses a name that closely resembles that of a 

better-known, reputable organization;

• thanks a potential donor for a pledge that 

the person doesn’t remember making;

• asks a potential contributor for bank account 

or credit card information before the person 

has reviewed the solicitor’s information and 

agreed to contribute;

• uses high-pressure tactics to secure a donation before the potential donor has had a 

chance to make an informed decision about 

giving;

• asks for donations in cash;

• offers to send a courier or overnight delivery service to collect the donation immediately;

• guarantees sweepstakes winnings in exchange for a contribution.

Charity Checklist

Consider the following precautions to ensure 

that your donation dollars benefit the people 

and organizations you want to help. They’re 

good practices whether you’re contacted by 

an organization’s employees, volunteers, or 

professional fund-raisers, soliciting donations 

by phone, mail, or in person.

Be wary of appeals that tug at your heart strings, 

especially pleas involving patriotism and current events. Although the Department of Defense 

does not endorse any specific war-related charity, you can visit their website at 

www.army.mil/operations/oif/FAQ.html 

to find out about military relief societies that 

provide assistance to U.S. Servicemembers and 

their families.

 

4 Ask for the name of the charity if the telemarketer does not provide it promptly.

4 Ask what percentage of the donation is 

used to support the causes described in the 

solicitation, and what percentage is used for 

administrative costs.
Facts for Consumers

4 Call the charity to find out whether it’s 

aware of the solicitation and has authorized 

the use of its name.

4 If the telemarketer claims that the charity 

will support local organizations, call the local groups to verify.

4 Discuss the donation with a trusted family 

member or friend before committing the 

funds.

4 Don’t provide any credit card or bank account information until you have reviewed 

all information from the charity and made 

the decision to donate.

4 Ask for a receipt showing the amount of 

the contribution and stating that it is tax 

deductible;

4 Understand that contributions made to a 

“tax exempt” organization are not necessarily tax deductible.

4 Avoid cash gifts. They can be lost or stolen. For security and tax record purposes, 

it’s best to pay by check, made payable to 

the beneficiary, not the solicitor.

Fraud Protection Tips

You can help protect the person you care for or 

about by helping to locate legitimate charities. 

These organizations can be good sources of free 

information about the charities you’d like to 

support. 

BBB Wise Giving Alliance

4200 Wilson Boulevard, Suite 800

Arlington, VA 22203

(703) 276-0100

www.give.org

American Institute of Philanthropy 

3450 N. Lake Shore Drive, Suite 2802 E

Chicago, IL 60657 

(773) 529-2300 

www.charitywatch.org

Charity Navigator

1200 MacArthur Blvd. 

Mahwah, NJ 07430

(201) 818-1288 

www.charitynavigator.org

GuideStar

4801 Courthouse Street

Suite 220

Williamsburg, VA 23188

(757) 229-4631

www.guidestar.org

 

Where to Complain

If you believe an organization may not be 

operating for charitable purposes or is making 

misleading solicitations, contact your state 

Attorney General, your local consumer 

protection office, or the Federal Trade 

Commission.

The FTC works for the consumer to prevent 

fraudulent, deceptive, and unfair business 

practices in the marketplace and to provide 

information to help consumers spot, stop, and 

avoid them. To file a complaint or to get free 

information on consumer issues, visit ftc.gov or 

call toll-free, 1-877-FTC-HELP
Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

Facts for Consumers

May 2003