Saving money is not always about keeping more for yourself. Many couponers and habitual savers are strong believers in the “pay it forward” mentality, routinely couponing for a cause or earmarking savings, such as rebate checks, for charitable giving. As a result, many of these organizations, from your local food pantry to an international relief fund, rely on the generosity of ordinary people like you and me to play a large part in driving their mission forward.
And in the 21st century giving is easier than ever. Through online donation portals, websites like GoFundMe, Donors Choose, and CrowdRise, and even social media outlets like Facebook, getting funds to your favorite organizations has never been more convenient. Donating money online, using services like PayPal or even credit cards, makes giving to these worthy causes simple and provides donors a reliable trail and easy-to-access receipt for tax purposes.
However, like anything online and certainly anything that involves finance, there is an inherent risk to choosing to donate money to online fundraisers, particularly when they are related to individual causes or one-off disasters. The sad fact is that there are people and “organizations” out there looking to make money off of charity. They see your generosity as a weakness. That’s why it is important to recognize the risks involved in donating money online as well as note the steps you can take to protect yourself, your money and the causes near and dear to your heart.
Common Risks When Donating Money Online
I want to start by saying that there are many, many legitimate and worthy organizations out there who offer their donors safe, easy access to online donation portals. These organizations include many nationally-recognized names as well as local and one-off fundraisers that are led by honest and dedicated individuals. I’d even wager a guess that most online fundraisers and charity opportunities fall into this category. However, there is a small percentage that don’t and knowing what to look out for will help you keep yourself and your money safe. Here are the common risks that consumers face when donating money online:
- Totally fake charity sites
These are the most egregious frauds, often part of a large, complex ring of criminal activity. Everything from their website to the cause they support may be made up. However, these sites are most prevalent during well-publicized natural disasters or tragedies, trying to slip in under the radar, appearing just like or even mimicking the more prominent organizations raising money for the same event. - Phishing emails
Often targeted at people who have made donations before, these emails may ask for bank or credit card information. Using email lists they buy off of other not-so-savory individuals, these people often claim to be related to or aligned with a cause you have previously supported. - Identity theft
Whether part of a site or cause designed to steal information or part of a hacking job on a legitimate site, malware and viruses can be lurking in online donation portals. These programs extract personal information including your credit card information or SSN and use it to steal your identity.
How to Stay Safe When Donating Money Online
Keeping yourself and your money safe when donating money online involves checking out not only the organization or cause but the portal they use to process your payment. Just like when making purchases or participating in online banking, staying alert and doing your due diligence is essential when it comes to making charitable donations. Here are four important points to consider in that process.
1. Check Out the Organization or Crowdfunding Site Itself
Before you part with any personal information, check out the website or organization through which you are sending your money by reading their fine print and conducting a good old fashioned Google search. Also run a check through the Better Business Bureau or charity-specific watchdogs such as CharityNavigator.org. If you are still feeling uneasy, choose a different charity or try to find a way to donate to a cause through other means such as a check or telephone call.
2. Be Very Careful When Dealing with Social Media Pleas
Many highly-local fundraising efforts focus their pleas and attention to social media since that is the easiest and fastest way to reach the most people in a narrow, targeted field. However, social media is also the stomping grounds for fraudulent funds. There are plenty of case studies of completely made-up tragedies that have “gone viral” despite their fictitious starts. In other words if the social media-only fundraising is coming from a personal friend or family member, you are better off then if it is from some anonymous do-gooder or a friend of a friend of a “friend.”
3. Know Where Your Money Goes
Whether you choose to donate to the Red Cross and the World Wildlife Fund or to a local food pantry and a funeral fund for a fallen firefighter, it is important to understand what portion of your donated dollars actually goes to “helping.” When it comes to large charities, there are annual lists of who gives the most resources to actually helping (versus just paying “administrative” costs). On the local level, take time to investigate the person or persons behind each fundraising effort as well as the policies of the crowdfunding agency itself. While its difficult to imagine why they would, the truth is anyone can start a “fund” for anyone else. Whether or not that money actually gets to the person in need is on the honor of the organizer.
4. Look for Security Badges
Protect your personal information by making sure that any web portal you use to send money is protected by encryption codes and security badges. Key indicators include a secure server (https) or a padlock symbol in the navigation bar. Many credit cards also offer a layer of protection as do secure payment sites like PayPal and Visa Pay.
Don’t Stop Donating
Although there are certain risks associated with donating money online, they are certainly no reason to give up your charitable contributions. Instead, stay alert and do your homework, just like when shopping for a deal.
