FUND RAISING  SCAMS: Be careful who you donate to                     

Before the advent of the Internet, there was a saying that you couldn’t cheat an honest man. Now because of the Internet is world-wide, there are literally hundreds of ways to bilk even the most honest human being, so you can understand why the old axiom doesn`t always hold true.

A couple that was visiting the Far East in 2004 when the tsunami disaster struck was unfortunately killed.  Scam artists then via solicited e-mails stated that the couple had $10 million in their bank account when they died. In their email messages to the suckers receiving them, they said that if they pretended to be relatives to collect the inheritance, the couple’s lawyers (the scammers) would back up their claim for a share of the inheritance money. The so called lawyers wanted their fees up front of course. It’s unknown if these wretched scammers were even arrested, but anyone who fell for this scam deserved to lose whatever money they foolishly gave to the scammers.

An official fund for the victims of the Virginia Tech shootings was set up online and at Virginia Tech itself following the tragedy. Alas, as many as 25 fraudulent funds were set up online at the same time as the real one. For this reason, it was difficult to distinguish which Virginia  Tech charity was the real one.  People who fell victim to this Virginia Tech scheme also faced the threat of identity theft more than simply being scammed out of their money.  Fortunately, the US Computer Emergency Response Team was instrumental in rapidly shutting down those these fraudulent sites.

The 9-11 tragedy set the criminal standard for using the Internet as a means to take advantage of a crisis. Every internet based scam has been used or from the 9-11 internet frauds. Through relief scams, false charities, variations of the 419 scam, cyber-hustlers literally used every trick in the book to dupe and steal from financial contributors worldwide.

Here is one I got from TOPTENZ that describes the worst ten scammers.

Between 2000 and present, two terrible things have occurred on American soils that have embedded themselves into our culture: 9-11 and Hurricane Katrina.  In the case of Hurricane Katrina, if FEMA’s failure to respond and the American president’s ineptitude weren’t bad enough, there was no shortage of opportunistic leeches prepared to steal from the displaced and disadvantaged in order to make their own pockets a little fatter.

The first scam of note was one located at Katrinafund.name and neworleanscharities.com which was geared towards raising money solely for Caucasian victims of Katrina. To their shame, it didn’t want to help any of the Black victims. Shortly thereafter, a Brazilian website solicited via millions of e-mails where the scammer posed as a representative of the American Red Cross.  ABC News described one of these websites as appearing very credible; the trick being that when a “mark” clicked the donate button, their personal information was actually sent to the third party while the mark was redirected to American Red Cross website.

The Federal Bureau of Investigation estimates that following Hurricane Katrina, over 4,600 websites popped up, most either claiming they could send money to Katrina relief efforts or claiming to actually be a Katrina relief effort.  They used every trick in the book to bilk decent people out of desperately needed Katrina relief money through a combination of phishing and solicitous e-mail.

Thankfully, the US federal government was quicker in shutting these Internet abominations down than they were in actually responding to the hurricane.  Florida resident Gary Kraser was sentenced to 21 months in federal prison for posing as a relief effort pilot on his fraudulent website, AirKatrina.com.  Kraser even went so far as to keep a “tearful” web diary of his imaginary journeys to Louisiana, in which he wrote “I saw dogs wrapped in electrical lines still alive and sparks flying from their bodies while being electrocuted, as well as some people who were dead already.”

Twenty-one months in prison? Clearly that was not enough. What happened to the money he scammed from those willing to donate to his cause? 

There are many worthwhile organizations who will solicit you for your money but there are also many others and individuals who are simply scammers looking for an easy buck. This article is about the scammers. Real charities will spend 60 to 99 percent of the money they collect on the people they are supposed to serve. By contrast, charity scams often wind up filling the coffers with most or all of the money on its crooked administrators.

New motives have taken precedence: group pressure, credit-seeking, the hope of winning a big prize or the fear of being exposed as a skinflint. Big-name charities now go after big bucks, not small cheques. They employ professional marketers and fundraisers. They use techniques that irritate, offend and embarrass people.

People in days gone by donated to charity because they believed in the cause. They wanted to give back to an organization that had helped them, or they cared about their community. Those days are gone. Nowadays, the telemarketers are even more persuasive. They show you pictures of little children and while you look at the tears running down the children’s cheeks, the background music is what you would hear at a funeral.

Every year, thousands of people lose money to telephone scams — from a few dollars to their life savings. Scammers will say anything to cheat people out of money. Some seem very friendly by calling you by your first name, making small talk, and asking about your family. They may claim to work for a company you trust, or they may send mail or place ads to convince you to call them.  When a charity you’ve never heard of lures you with an emotional plea it’s time to start asking questions.

Now I will tell you more stories of some of the scammers.

Recently, a young woman sent a message in Facebook seeking group funding from complete strangers for fifty thousand dollars so that she could go to Oxford University. Now why would anyone with any semblance of a brain give that woman any money? There are probably millions of young people who would like to go to that famous university but don’t have the money to pay the high tuition fees and living expenses. Some will seek grants. That’s OK. Others are fortunate enough to have rich parents who will send them to that University. However, the vast majority of hopefuls simply accept the fact that going to that particular university is not going to happen. What they don’t do is beg for the money from complete strangers to pay their way to go to one of the world’s finest universities.

                   

There are cases of people with real ailments that need donations however, recently, Brandi Lee Weaver-Gates, 23, claimed that she had been suffering from chronic lymphocytic leukemia for the past two years. The Penn State graduate conned people into holding events to raise money for her bogus battle with cancer.  The police got an anonymous letter earlier this year claiming that this horrible woman couldn’t name any of her doctors.  The police investigated her and said that she repeatedly shaved her head and had her friends and family drive her to cancer hospitals where they would wait for her in the lobby for hours  The most recent charity event held on her behalf raised $14,000 for this scammer’s so-called 'treatment'. She pocketed all the money that was donated on her behalf. She was charged with theft by deception.  Pageant organizers have revoked Weaver-Gates' Miss Pennsylvania U.S. International title.  No doubt, she will be spending some time in jail.

Charles E. Coughlin, 49, a retired Navy commander who was awarded the Purple Heart for his actions after the 2001 terrorist attack on the Pentagon has been charged with lying about his injuries to collect more than $331,000 from a victims' fund. This creep pleaded not guilty to federal charges of mail fraud, theft of public money and filing fraudulent claims in connection with a scheme that helped him use $200,000 to buy the house and pay off loans on his 2002 Mercedes-Benz and a 2002 Honda Odyssey, A grand jury indicted Coughlin and his wife, Sabrina, 46.

Sabrina Coughlin pleaded not guilty to mail fraud at the federal courthouse in Washington. In his application for compensation, Coughlin said he was "struck on the head by falling debris" and hit his head on the floor on what he thought was a door. To justify his claim, Coughlin used a medical opinion about a 1998 neck injury in his application to make it appear that he had suffered the injury on September 11, 2001. Coughlin ran the New York City Marathon "in under four hours" just two months after the attacks. He also continued to play lacrosse and basketball. That was a dumb thing to do when claiming compensation. When I was hired on as an investigator to investigate insurance claims, I caught many of these scammers doing things that couldn’t be done after suffering from the so-called injuries they were claiming for.

At a May 2004 hearing, prosecutors said that Coughlin and his wife falsely testified about the extent of his injuries. The compensation board awarded him $331,034. This creep was found guilty after a three-week trial that found he made false claims from a fund set up by Congress after the 9/11 attacks. In December 2011, he was sentenced to 41 months in prison. What a stupid man.  He was originally offered $60.000 for his so-called injuries.  His wife was acquitted. Later a civil suit was filed against them. I can’t even begin to imagine how much he owes the government considering all the interest that has piled up since he originally received all that money.  He and his wife can say goodbye to their house and cars.

There is another kind of charity scam that is very common. The con artists buy chocolate bars and send naïve kids into the neighborhoods telling the people who open their doors that they (the kids) are selling the chocolate bars (at a higher price than normal) and that the money is going to be used for cancer research. The money is actually pocked by the scammer. When those kids come to my door, I say this to them. “I am sorry but I already have more chocolate bars than I need and I donate money directly to the cancer organization.” That way, I am not insulting the kid for his naïvity.

Donating a car to charity sounds like a win-win proposition. The donor has a hassle-free way to get rid of an old car and gets a tax deduction for doing it. The charity supposedly gets an asset it would not have had otherwise. The problem is often very little of the car’s value goes to charity. For-profit businesses handling the cars on behalf of the charities have to pay costs to tow the car, repair any damage to the car and advertise. They then sell them at wholesale auctions, leaving very little if any for the charity. The money generally goes into the scammer’s pocket.                                                                      

Where is your donation to that police, sheriff or firefighters charity really going? Just because police and sheriff’s associations or firefighters’ relief organizations have the words “police” or “firefighter” in their name doesn’t mean your local police, sheriffs or firefighters are the ones who will benefit from your contribution.

Many charities that claim to support breast cancer research actually only exist to make people running those charities rich. Some nonprofits are just mismanaged by breast cancer survivors are relatives who have no experience running a charity. There are also plenty of organizations that purposely pose as breast cancer charities just to steal money from donors. For instance, New York Attorney General Eric Schneiderman has filed a lawsuit against the Coalition Against Breast Cancer (CABC) for allegedly being nothing more than a "sham charity.

According to the complaint, founder Andrew Smith; his girlfriend, Debra Koppelman; and their associates pilfered almost all of the $9.1 million raised in the past five years alone. The telemarketing firm hired to solicit donations was owned by CABC cofounder Garrett Morgan, who billed the charity $3.5 million for his services. In total, Smith and Koppelman paid themselves more than $550,000 in salaries between 2005 and 2009, plus another $150,000 in retirement accounts, this though both held down full-time jobs as recruiters. The CABC issued Smith a $105,000 personal loan, which he squandered on bad investments; Koppelman authorized a $50,000 loan to herself toward the purchase of a home.

Nonprofit charities have to report financial information to the federal government, but it's easy to fudge the numbers. Money used to hire telemarketers can be described as funds used for education if the words "Don't forget to get a mammogram!" are stamped on the bottom of the charity's stationary. The value of gifts may be inflated to make it seem like the charity is bigger, and distort the fact that most of the money isn't going to breast cancer research. Even some so-called respected groups, like the Texas charity called the National Breast Cancer Foundation, are involved in potentially shady practices, such as hiring a slew of family members and giving them six-figure salaries for filling vague roles like senior consultant.\

Many people first learn of a charity through a telemarketer call. (Charities are not bound by the Do-Not-Call list.) These calls are typically made by for-profit fundraisers hired on behalf of a so-called charity. I personally would never give money to a charity if I get a call from a telemarketer. Rather, I would call the charity first.  Research any charity you are considering. Make sure they spend most of the donated funds on their programs and keep advertising and administrative costs below 25 percent. Anything amount over that is suspicious.

Many legitimate charities are soliciting donations to support the nation’s military veterans as well as the families of active-duty personnel. And despite tough economic times, people reportedly are responding generously to these requests. But not all of these charities are legitimate: Some are sham operators whose only purpose is to make money for themselves. Others use paid fundraisers whose fees eat up most of a donation, so very little of it is shared with those in need.

The words “veterans” or “military families” in an organization’s name don’t necessarily mean that veterans or the families of active-duty personnel will benefit from the money you are donating. Scam artists follow the headlines and charities that spring up literally overnight in connection with military conflicts and related news stories may disappear just as quickly with your donation funding their next move. In many cases, those “instant charities” don’t have the infrastructure to get donated money or products to the right place nor in some cases, do they intend to.

Tax records for the Disabled Veterans National Foundation (DVNF) show that it has received as much as $55.9 million in donations since it began operations in 2007. This national charity that vows to help disabled veterans and their families and yet according to the DVNF's tax filings with the American IRS, almost none of that money has wound up in the hands of American veterans  has spent tens of millions on marketing services, all the while doling out massive amounts of candy, hand sanitizer bottles and many other unnecessary items to veteran aid groups, according to a CNN investigation. The charity made significant payments to Quadriga Art LLC, which owns two direct-mail fundraising companies hired by the DVNF to help garner donations, according to publicly available IRS 990 forms.

An independent group called Charity Watch gave the DVNF an "F" grade. More than 30 veterans charities were rated by the independent group by the amount they spend on fundraising compared to actual donations, and two-thirds were given either a D or F grade, according to Charity Watch president Daniel Borochoff.

Acting on a tip, law enforcement traced a suspect to a bar in Portland, Oregon. He was wanted in Ohio for embezzling up to $100 million in charitable donations, which he collected primarily from Navy veterans. The scam is an old one: Analysts refer to it as “affinity fraud.” This is a common form of fraud in which the criminal gains the victims’ trust by exploiting supposed commonalities such as a shared racial, ethnic or religious heritage, membership in the same church, or in this case, an affiliation with the military and veterans. Bobby Thompson, an alias (authorities still aren’t certain of the suspect’s real name), is accused of stealing millions in small contributions, mostly intended for the U.S. Navy Veteran’s Association, (USNVA) a legitimate charity in Tampa, Florida. The alleged crime spanned some 40 states. Donors thought their donations which were often from $5 to $50 were actually going to help needy veterans. Instead, prosecutors say, they simply lined Thompson’s pockets.

The Armed Forces Children’s Education Fund is a legitimate, Washington-based charity that gives the proceeds of their donations to the children of soldiers killed during the Iraq War. However, a Missouri man who placed candy inside of several local vending machines and claimed that money from these sales would go to AFCEF was never an employee of the AFCEF. District Attorney Jay Nixon made this clear to Henry County, Missouri citizens when he filed an indictment against the scammer.

Fake charities try to take advantage of your generosity and compassion for others in need. Scammers will steal your money by posing as a genuine charity. Not only do these scams cost you money, they also divert much needed donations away from legitimate charities and causes who really need the donations.

It really saddens me when I occasionally see some of those TV telemarketers begging the masses for money. They come on your TV screen convincing gullible people to part with their hard earned cash for the cause they are extolling.  They are exploiting people with their lies and manipulation. Some of these TV telemarketers seem very comfortable adding scripture as an incentive for the gullible to part with their money.  It makes me wonder what kind of person is willing to hand over their bank details to these frauds. Yes. If you send them a cheque, you will be sending them your bank details.

There is a shoe collection program that is organized by a charity called Soles4Souls.   That scam company finds ways to convert the shoes into cash.  USA Today ran an article explaining on what happens to these shoes once they are donated.  The majority of the shoes donated are sold off for around 50 to 75 cents a pair to ‘for-profit companies’ who resell them to merchants in poor countries, with the justification of Soles4Souls promoting a micro-finance program.  

By the way, if anyone can find the scripture in the Bible where you need to buy miracle spring water or a handkerchief that has been blessed by the so-called religious telemarketer to get a miracle, please let me know as I would like to buy a new car.

One popular evangelist announced on-air that she needed thousands of dollars to build a prayer room. She promised that those who funded this noble effort would receive recognition with special brass nameplates that would be mounted on the wall of the facility. The implication was that people could buy prayer coverage, sort of like a spiritual insurance policy. This woman went so far as to offer her loyal followers the status of  “spiritual son” or “spiritual daughter” if they paid a $1,000 annual fee.

Here is one of the techniques of these religious crooks that deceive many people. In their messages, they make mention of God and Jesus so that they will appear to be seen as ‘spiritual’ leaders. On the surface, there does not seem to be any reason not to believe them. They even speak some ‘truths’ and those hearing the message can relate to them. But even though there are truths, it is NOT necessarily the truth of the scriptures.

One preacher who specializes in telethons has raised millions by telling audiences that they are just one donation away from eliminating all their debts. All they have to do is give a sacrificial gift (usually four figures) to the TV network in the next few minutes. If they do this, God will wipe out their debts, no questions asked. No lifestyle changes are necessary. If you fall for this gimmick, you will experience a lifestyle change. The bailiff will be at the door of your house to tell you that he has just seized your car because you are behind in your payments.

The Day of Atonement offering. This particularly odd strategy has been popular in the last couple of years, especially among gullible Jews who believe God blesses anything and everything that has the word "Israel" attached to it. The preacher announces that if you write a check to their network, and wave it in the air before you mail it (preferably while wearing a Jewish prayer shawl), God will forgive your sins, restore your health, bring back your wayward children, provide angelic protection and bless you with more than a dozen other special favors. Will God pay the fee you have to give to your psychiatrist for treatment for being so stupid?

I remember reading an ad in a magazine many years ago in which some church fellow was soliciting money and said that if we made a small donation, he would send us a small cross. I decided to test him for his sincerity. I sent him a letter telling him that I was broke but would surely love to have a small cross to hang around my neck. Believe it or not, he actually sent me a small metal cross. 

Consider this religious scam—the magic Bible verse. The evangelist quotes Psalm 37:37 and then announces that if you will send $37.37 (“No more, no less!”) God will unleash all the blessings of King David upon you. The phones seem to ring more frequently when the number seven is included in the Bible reference.

In the King James Version of the Bible is says ‘enticing’ words and that is exactly what these telemarketers do. They entice people to give them money by deceiving them into a false promise that after making a donation, they will go straight to heaven when they die and for many people, this false hope will lead them into bankruptcy if they give these false preachers all they have.  People nowadays are more inclined to hear what they want to hear even if it is not true. 

The Deniz Feneri Foundation, an Islamic charity, faced backlash from the Muslim community in 2008 when Aykut Zahid Akman, lead organizer of charity, was convicted on fraud and embezzlement charges in Germany along with several members of his staff. The  leaders of Deniz Ferari had stolen at least 16 million Euros in donations from benevolent Muslims, then used the money to not only supplant their own lifestyles, but also to buy a cruise boat, a TV station, and Turkish stocks.  Aykut Zahid Akman was sentenced to 69 months in a German prison while his staff received lighter sentences to be served in  maximum security prisons.   

New motives have taken precedence: group pressure, credit-seeking, the hope of winning a big prize or the fear of being exposed as a skinflint. Big-name charities now go after big bucks, not small cheques. They employ professional marketers and fundraisers. They use techniques that irritate, offend and embarrass people.

Victims of a disaster, accident, illness or are simply poor are rarely in a position to personally solicit donations so be cautious if you’re contacted by someone claiming to be helping such a victim. Look for copycat names that might mislead or deceive you into thinking that you’re donating to a different cause, and watch for fundraising goals that seem too ambitious.

People in days gone by donated to charity because they believed in the cause. They wanted to give back to an organization that had helped them, or they cared about their community. Those days are gone. Nowadays, the telemarketers are even more persuasive. As an example, they will show you pictures of little children needing help and while you look at the tears running down the children’s cheeks, the background music is what you would probably hear at a funeral.  I think the tears are running down their little cheeks because they are not getting the help they need by the scam organization that promised to help them. 

While you’re out shopping for the holidays, you’re likely to run into scammers in front of stores raising money for some charity. And at that time of year, there’s a good chance you’ll want to open your wallet. But don’t assume that every fundraising effort is legitimate. Washington State’s attorney general and secretary of state recently warned consumers and merchants that scammers sometimes present themselves as persons employed to solicit money for real charities and instead are simply pocketing the donations. These crooks are taking money away from legitimate charities, so citizens should be aware of this emerging problem and avoid being scammed.  I am sure that most if not all Salvation Army personnel wearing their uniform suits are legitimate but you can never be sure if the person soliciting the money and is wearing a Santa Cause suit is really collecting money for a charity.   

Do you have any idea as to how much of your donation actually goes to people in need?

Real legitimate charities will spend 60 to 99 percent of the money they collect on the people they are supposed to serve. By contrast, charity scams often wind up spending most or all of the money on its administrators

Unless you have signed up to receive email from a charity, do not respond to email charity solicitations. Real charities do not normally recruit new donors by email, and especially not by spams. They may ask you for personal identification on the premise that you will get a tax break if you donate to their cause. Be wary of websites that ask for personal information like your Social Security number, date of birth or bank account information, which can lead to identity theft.

Take time to research the fundraising entity and try to avoid making emotional donation decisions. Donate to known, credible fundraising charities and carefully read the terms and conditions of their purpose.  

In Canada, you can find out whether or not a charity is actively registered via the Canada Revenue Agency website (note that the CRA doesn’t have a list of non-registered charities—organizations established to benefit a particular individual or private group are considered to be established for private benevolence since they do not qualify for registration).

Some phony charities use names, seals, and logos that look or sound like those of respected, legitimate organizations.  They may even claim veteran status themselves as a way to gain your trust. You may see a small difference in the name of the charity from the one you intend to deal with. In that case, call the organization you know to be legitimate and check it out to see if they are aware of the one you are suspicious of.

Don’t be shy about asking who wants your money. Some charities hire professional fundraisers for large-scale mailings, telephone drives, and other solicitations, rather than use their own staff or volunteers. They use a portion of the donations to pay the fundraiser’s fees. If you’re solicited for a donation, ask if the caller is a paid fundraiser, who they work for, and the percentage of your donation that will go to the charity and to the fundraiser. If you don’t get a clear answer or if the answer is suspicious; consider donating to a different organization.

Be very suspicious of anyone collecting donations on behalf of the charity they claim they are soliciting on their behalf if the person doesn’t have any identification relating to the charity, Further,  even if they do have identification, it could be forged or meaningless. Quite frankly, I don’t give to charity solicitors coming to my door. that is because I have no way of knowing if there are scammers.

There are controls and laws governing charities and businesses that accept donations. The Internal Revenue Service (IRS) with the Better Business Bureau (BBB) has regulations that can be found on their websites. Call the appropriate office that regulates charitable organizations and charitable solicitations to see whether the charity or fundraising organization has to be registered in your state or province or in your country.  Check to make sure that the charity you’re talking to is registered. If it isn’t registered, then you will know that it is a scam.  Do not send or give cash donations. Cash can be lost or stolen. For security and tax record purposes, it’s best to pay by cheques made payable to the charity. Never make the cheques payable to the person soliciting you for money.                     

Before the advent of the Internet, there was a saying that you couldn’t cheat an honest man. Now because of the Internet is world-wide, there are literally hundreds of ways to bilk even the most honest human being, so you can understand why the old axiom doesn`t always hold true.

A couple that was visiting the Far East in 2004 when the tsunami disaster struck was unfortunately killed.  Scam artists then via solicited e-mails stated that the couple had $10 million in their bank account when they died. In their email messages to the suckers receiving them, they said that if they pretended to be relatives to collect the inheritance, the couple’s lawyers (the scammers) would back up their claim for a share of the inheritance money. The so called lawyers wanted their fees up front of course. It’s unknown if these wretched scammers were even arrested, but anyone who fell for this scam deserved to lose whatever money they foolishly gave to the scammers.

An official fund for the victims of the Virginia Tech shootings was set up online and at Virginia Tech itself following the tragedy. Alas, as many as 25 fraudulent funds were set up online at the same time as the real one. For this reason, it was difficult to distinguish which Virginia  Tech charity was the real one.  People who fell victim to this Virginia Tech scheme also faced the threat of identity theft more than simply being scammed out of their money.  Fortunately, the US Computer Emergency Response Team was instrumental in rapidly shutting down those these fraudulent sites.

The 9-11 tragedy set the criminal standard for using the Internet as a means to take advantage of a crisis. Every internet based scam has been used or from the 9-11 internet frauds. Through relief scams, false charities, variations of the 419 scam, cyber-hustlers literally used every trick in the book to dupe and steal from financial contributors worldwide.

Here is one I got from TOPTENZ that describes the worst ten scammers.

Between 2000 and present, two terrible things have occurred on American soils that have embedded themselves into our culture: 9-11 and Hurricane Katrina.  In the case of Hurricane Katrina, if FEMA’s failure to respond and the American president’s ineptitude weren’t bad enough, there was no shortage of opportunistic leeches prepared to steal from the displaced and disadvantaged in order to make their own pockets a little fatter.

The first scam of note was one located at Katrinafund.name and neworleanscharities.com which was geared towards raising money solely for Caucasian victims of Katrina. To their shame, it didn’t want to help any of the Black victims. Shortly thereafter, a Brazilian website solicited via millions of e-mails where the scammer posed as a representative of the American Red Cross.  ABC News described one of these websites as appearing very credible; the trick being that when a “mark” clicked the donate button, their personal information was actually sent to the third party while the mark was redirected to American Red Cross website.

The Federal Bureau of Investigation estimates that following Hurricane Katrina, over 4,600 websites popped up, most either claiming they could send money to Katrina relief efforts or claiming to actually be a Katrina relief effort.  They used every trick in the book to bilk decent people out of desperately needed Katrina relief money through a combination of phishing and solicitous e-mail.

Thankfully, the US federal government was quicker in shutting these Internet abominations down than they were in actually responding to the hurricane.  Florida resident Gary Kraser was sentenced to 21 months in federal prison for posing as a relief effort pilot on his fraudulent website, AirKatrina.com.  Kraser even went so far as to keep a “tearful” web diary of his imaginary journeys to Louisiana, in which he wrote “I saw dogs wrapped in electrical lines still alive and sparks flying from their bodies while being electrocuted, as well as some people who were dead already.”

Twenty-one months in prison? Clearly that was not enough. What happened to the money he scammed from those willing to donate to his cause? 

There are many worthwhile organizations who will solicit you for your money but there are also many others and individuals who are simply scammers looking for an easy buck. This article is about the scammers. Real charities will spend 60 to 99 percent of the money they collect on the people they are supposed to serve. By contrast, charity scams often wind up filling the coffers with most or all of the money on its crooked administrators.

New motives have taken precedence: group pressure, credit-seeking, the hope of winning a big prize or the fear of being exposed as a skinflint. Big-name charities now go after big bucks, not small cheques. They employ professional marketers and fundraisers. They use techniques that irritate, offend and embarrass people.

People in days gone by donated to charity because they believed in the cause. They wanted to give back to an organization that had helped them, or they cared about their community. Those days are gone. Nowadays, the telemarketers are even more persuasive. They show you pictures of little children and while you look at the tears running down the children’s cheeks, the background music is what you would hear at a funeral.

Every year, thousands of people lose money to telephone scams — from a few dollars to their life savings. Scammers will say anything to cheat people out of money. Some seem very friendly by calling you by your first name, making small talk, and asking about your family. They may claim to work for a company you trust, or they may send mail or place ads to convince you to call them.  When a charity you’ve never heard of lures you with an emotional plea it’s time to start asking questions.

Now I will tell you more stories of some of the scammers.

Recently, a young woman sent a message in Facebook seeking group funding from complete strangers for fifty thousand dollars so that she could go to Oxford University. Now why would anyone with any semblance of a brain give that woman any money? There are probably millions of young people who would like to go to that famous university but don’t have the money to pay the high tuition fees and living expenses. Some will seek grants. That’s OK. Others are fortunate enough to have rich parents who will send them to that University. However, the vast majority of hopefuls simply accept the fact that going to that particular university is not going to happen. What they don’t do is beg for the money from complete strangers to pay their way to go to one of the world’s finest universities.

                   

There are cases of people with real ailments that need donations however, recently, Brandi Lee Weaver-Gates, 23, claimed that she had been suffering from chronic lymphocytic leukemia for the past two years. The Penn State graduate conned people into holding events to raise money for her bogus battle with cancer.  The police got an anonymous letter earlier this year claiming that this horrible woman couldn’t name any of her doctors.  The police investigated her and said that she repeatedly shaved her head and had her friends and family drive her to cancer hospitals where they would wait for her in the lobby for hours  The most recent charity event held on her behalf raised $14,000 for this scammer’s so-called 'treatment'. She pocketed all the money that was donated on her behalf. She was charged with theft by deception.  Pageant organizers have revoked Weaver-Gates' Miss Pennsylvania U.S. International title.  No doubt, she will be spending some time in jail.

There is another kind of charity scam that is very common. The con artists buy chocolate bars and send naïve kids into the neibourhoods telling the people who open their doors that they (the kids) are selling the chocolate bars (at a higher price than normal) and that the money is going to be used for cancer research. The money is actually pocked by the scammer. When those kids come to my door, I say this to them. “I am sorry but I already have more chocolate bars than I need and I donate money directly to the cancer organization.” That way, I am not insulting the kid for his naïvity.

Donating a car to charity sounds like a win-win proposition. The donor has a hassle-free way to get rid of an old car and gets a tax deduction for doing it. The charity supposedly gets an asset it would not have had otherwise. The problem is often very little of the car’s value goes to charity. For-profit businesses handling the cars on behalf of the charities have to pay costs to tow the car, repair any damage to the car and advertise. They then sell them at wholesale auctions, leaving very little if any for the charity. The money generally goes into the scammer’s pocket.                                                                      

Where is your donation to that police, sheriff or firefighters charity really going? Just because police and sheriff’s associations or firefighters’ relief organizations have the words “police” or “firefighter” in their name doesn’t mean your local police, sheriffs or firefighters are the ones who will benefit from your contribution.

Many charities that claim to support breast cancer research actually only exist to make people running those charities rich. Some nonprofits are just mismanaged by breast cancer survivors are relatives who have no experience running a charity. There are also plenty of organizations that purposely pose as breast cancer charities just to steal money from donors. For instance, New York Attorney General Eric Schneiderman has filed a lawsuit against the Coalition Against Breast Cancer (CABC) for allegedly being nothing more than a "sham charity.

According to the complaint, founder Andrew Smith; his girlfriend, Debra Koppelman; and their associates pilfered almost all of the $9.1 million raised in the past five years alone. The telemarketing firm hired to solicit donations was owned by CABC cofounder Garrett Morgan, who billed the charity $3.5 million for his services. In total, Smith and Koppelman paid themselves more than $550,000 in salaries between 2005 and 2009, plus another $150,000 in retirement accounts, this though both held down full-time jobs as recruiters. The CABC issued Smith a $105,000 personal loan, which he squandered on bad investments; Koppelman authorized a $50,000 loan to herself toward the purchase of a home.

Nonprofit charities have to report financial information to the federal government, but it's easy to fudge the numbers. Money used to hire telemarketers can be described as funds used for education if the words "Don't forget to get a mammogram!" are stamped on the bottom of the charity's stationary. The value of gifts may be inflated to make it seem like the charity is bigger, and distort the fact that most of the money isn't going to breast cancer research. Even some so-called respected groups, like the Texas charity called the National Breast Cancer Foundation, are involved in potentially shady practices, such as hiring a slew of family members and giving them six-figure salaries for filling vague roles like senior consultant.\

Many people first learn of a charity through a telemarketer call. (Charities are not bound by the Do-Not-Call list.) These calls are typically made by for-profit fundraisers hired on behalf of a so-called charity. I personally would never give money to a charity if I get a call from a telemarketer. Rather, I would call the charity first.  Research any charity you are considering. Make sure they spend most of the donated funds on their programs and keep advertising and administrative costs below 25 percent. Anything amount over that is suspicious.

Many legitimate charities are soliciting donations to support the nation’s military veterans as well as the families of active-duty personnel. And despite tough economic times, people reportedly are responding generously to these requests. But not all of these charities are legitimate: Some are sham operators whose only purpose is to make money for themselves. Others use paid fundraisers whose fees eat up most of a donation, so very little of it is shared with those in need.

The words “veterans” or “military families” in an organization’s name don’t necessarily mean that veterans or the families of active-duty personnel will benefit from the money you are donating. Scam artists follow the headlines and charities that spring up literally overnight in connection with military conflicts and related news stories may disappear just as quickly with your donation funding their next move. In many cases, those “instant charities” don’t have the infrastructure to get donated money or products to the right place nor in some cases, do they intend to.

Tax records for the Disabled Veterans National Foundation (DVNF) show that it has received as much as $55.9 million in donations since it began operations in 2007. This national charity that vows to help disabled veterans and their families and yet according to the DVNF's tax filings with the American IRS, almost none of that money has wound up in the hands of American veterans  has spent tens of millions on marketing services, all the while doling out massive amounts of candy, hand sanitizer bottles and many other unnecessary items to veteran aid groups, according to a CNN investigation. The charity made significant payments to Quadriga Art LLC, which owns two direct-mail fundraising companies hired by the DVNF to help garner donations, according to publicly available IRS 990 forms.

An independent group called Charity Watch gave the DVNF an "F" grade. More than 30 veterans charities were rated by the independent group by the amount they spend on fundraising compared to actual donations, and two-thirds were given either a D or F grade, according to Charity Watch president Daniel Borochoff.

Acting on a tip, law enforcement traced a suspect to a bar in Portland, Oregon. He was wanted in Ohio for embezzling up to $100 million in charitable donations, which he collected primarily from Navy veterans. The scam is an old one: Analysts refer to it as “affinity fraud.” This is a common form of fraud in which the criminal gains the victims’ trust by exploiting supposed commonalities such as a shared racial, ethnic or religious heritage, membership in the same church, or in this case, an affiliation with the military and veterans. Bobby Thompson, an alias (authorities still aren’t certain of the suspect’s real name), is accused of stealing millions in small contributions, mostly intended for the U.S. Navy Veteran’s Association, (USNVA) a legitimate charity in Tampa, Florida. The alleged crime spanned some 40 states. Donors thought their donations which were often from $5 to $50 were actually going to help needy veterans. Instead, prosecutors say, they simply lined Thompson’s pockets.

The Armed Forces Children’s Education Fund is a legitimate, Washington-based charity that gives the proceeds of their donations to the children of soldiers killed during the Iraq War. However, a Missouri man who placed candy inside of several local vending machines and claimed that money from these sales would go to AFCEF was never an employee of the AFCEF. District Attorney Jay Nixon made this clear to Henry County, Missouri citizens when he filed an indictment against the scammer.

Fake charities try to take advantage of your generosity and compassion for others in need. Scammers will steal your money by posing as a genuine charity. Not only do these scams cost you money, they also divert much needed donations away from legitimate charities and causes who really need the donations.

It really saddens me when I occasionally see some of those TV telemarketers begging the masses for money. They come on your TV screen convincing gullible people to part with their hard earned cash for the cause they are extolling.  They are exploiting people with their lies and manipulation. Some of these TV telemarketers seem very comfortable adding scripture as an incentive for the gullible to part with their money.  It makes me wonder what kind of person is willing to hand over their bank details to these frauds. Yes. If you send them a cheque, you will be sending them your bank details.

There is a shoe collection program that is organized by a charity called Soles4Souls.   That scam company finds ways to convert the shoes into cash.  USA Today ran an article explaining on what happens to these shoes once they are donated.  The majority of the shoes donated are sold off for around 50 to 75 cents a pair to ‘for-profit companies’ who resell them to merchants in poor countries, with the justification of Soles4Souls promoting a micro-finance program.  

One popular evangelist announced on-air that she needed thousands of dollars to build a prayer room. She promised that those who funded this noble effort would receive recognition with special brass nameplates that would be mounted on the wall of the facility. The implication was that people could buy prayer coverage, sort of like a spiritual insurance policy. This woman went so far as to offer her loyal followers the status of  “spiritual son” or “spiritual daughter” if they paid a $1,000 annual fee.

Here is one of the techniques of these religious crooks that deceive many people. In their messages, they make mention of God and Jesus so that they will appear to be seen as ‘spiritual’ leaders. On the surface, there does not seem to be any reason not to believe them. They even speak some ‘truths’ and those hearing the message can relate to them. But even though there are truths, it is NOT necessarily the truth of the scriptures.

One preacher who specializes in telethons has raised millions by telling audiences that they are just one donation away from eliminating all their debts. All they have to do is give a sacrificial gift (usually four figures) to the TV network in the next few minutes. If they do this, God will wipe out their debts, no questions asked. No lifestyle changes are necessary. If you fall for this gimmick, you will experience a lifestyle change. The bailiff will be at the door of your house to tell you that he has just seized your car because you are behind in your payments.

The Day of Atonement offering. This particularly odd strategy has been popular in the last couple of years, especially among gullible Jews who believe God blesses anything and everything that has the word "Israel" attached to it. The preacher announces that if you write a check to their network, and wave it in the air before you mail it (preferably while wearing a Jewish prayer shawl), God will forgive your sins, restore your health, bring back your wayward children, provide angelic protection and bless you with more than a dozen other special favors. Will God pay the fee you have to give to your psychiatrist for treatment for being so stupid?

I remember reading an ad in a magazine many years ago in which some church fellow was soliciting money and said that if we made a small donation, he would send us a small cross. I decided to test him for his sincerity. I sent him a letter telling him that I was broke but would surely love to have a small cross to hang around my neck. Believe it or not, he actually sent me a small metal cross. 

Consider this religious scam—the magic Bible verse. The evangelist quotes Psalm 37:37 and then announces that if you will send $37.37 (“No more, no less!”) God will unleash all the blessings of King David upon you. The phones seem to ring more frequently when the number seven is included in the Bible reference.

In the King James Version of the Bible is says ‘enticing’ words and that is exactly what these telemarketers do. They entice people to give them money by deceiving them into a false promise that after making a donation, they will go straight to heaven when they die and for many people, this false hope will lead them into bankruptcy if they give these false preachers all they have.  People nowadays are more inclined to hear what they want to hear even if it is not true. 

The Deniz Feneri Foundation, an Islamic charity, faced backlash from the Muslim community in 2008 when Aykut Zahid Akman, lead organizer of charity, was convicted on fraud and embezzlement charges in Germany along with several members of his staff. The  leaders of Deniz Ferari had stolen at least 16 million Euros in donations from benevolent Muslims, then used the money to not only supplant their own lifestyles, but also to buy a cruise boat, a TV station, and Turkish stocks.  Aykut Zahid Akman was sentenced to 69 months in a German prison while his staff received lighter sentences to be served in maximum security prisons.

New motives have taken precedence: group pressure, credit-seeking, the hope of winning a big prize or the fear of being exposed as a skinflint. Big-name charities now go after big bucks, not small cheques. They employ professional marketers and fundraisers. They use techniques that irritate, offend and embarrass people.

Victims of a disaster, accident, illness or are simply poor are rarely in a position to personally solicit donations so be cautious if you’re contacted by someone claiming to be helping such a victim. Look for copycat names that might mislead or deceive you into thinking that you’re donating to a different cause, and watch for fundraising goals that seem too ambitious.

People in days gone by donated to charity because they believed in the cause. They wanted to give back to an organization that had helped them, or they cared about their community. Those days are gone. Nowadays, the telemarketers are even more persuasive. As an example, they will show you pictures of little children needing help and while you look at the tears running down the children’s cheeks, the background music is what you would probably hear at a funeral.  I think the tears are running down their little cheeks because they are not getting the help they need by the scam organization that promised to help them. 

While you’re out shopping for the holidays, you’re likely to run into scammers in front of stores raising money for some charity. And at that time of year, there’s a good chance you’ll want to open your wallet. But don’t assume that every fundraising effort is legitimate. Washington State’s attorney general and secretary of state recently warned consumers and merchants that scammers sometimes present themselves as persons employed to solicit money for real charities and instead are simply pocketing the donations. These crooks are taking money away from legitimate charities, so citizens should be aware of this emerging problem and avoid being scammed.  I am sure that most if not all Salvation Army personnel wearing their uniform suits are legitimate but you can never be sure if the person soliciting the money and is wearing a Santa Cause suit is really collecting money for a charity.   

Do you have any idea as to how much of your donation actually goes to people in need?

Real legitimate charities will spend 60 to 99 percent of the money they collect on the people they are supposed to serve. By contrast, charity scams often wind up spending most or all of the money on its administrators

Unless you have signed up to receive email from a charity, do not respond to email charity solicitations. Real charities do not normally recruit new donors by email, and especially not by spams. They may ask you for personal identification on the premise that you will get a tax break if you donate to their cause. Be wary of websites that ask for personal information like your Social Security number, date of birth or bank account information, which can lead to identity theft.

Take time to research the fundraising entity and try to avoid making emotional donation decisions. Donate to known, credible fundraising charities and carefully read the terms and conditions of their purpose.  

In Canada, you can find out whether or not a charity is actively registered via the Canada Revenue Agency website (note that the CRA doesn’t have a list of non-registered charities—organizations established to benefit a particular individual or private group are considered to be established for private benevolence since they do not qualify for registration).

Some phony charities use names, seals, and logos that look or sound like those of respected, legitimate organizations.  They may even claim veteran status themselves as a way to gain your trust. You may see a small difference in the name of the charity from the one you intend to deal with. In that case, call the organization you know to be legitimate and check it out to see if they are aware of the one you are suspicious of.

Don’t be shy about asking who wants your money. Some charities hire professional fundraisers for large-scale mailings, telephone drives, and other solicitations, rather than use their own staff or volunteers. They use a portion of the donations to pay the fundraiser’s fees. If you’re solicited for a donation, ask if the caller is a paid fundraiser, who they work for, and the percentage of your donation that will go to the charity and to the fundraiser. If you don’t get a clear answer or if the answer is suspicious; consider donating to a different organization.

Be very suspicious of anyone collecting donations on behalf of the charity they claim they are soliciting on their behalf if the person doesn’t have any identification relating to the charity, Further,  even if they do have identification, it could be forged or meaningless. Quite frankly, I don’t give to charity solicitors coming to my door. that is because I have no way of knowing if there are scammers.

There are controls and laws governing charities and businesses that accept donations. The Internal Revenue Service (IRS) with the Better Business Bureau (BBB) has regulations that can be found on their websites. Call the appropriate office that regulates charitable organizations and charitable solicitations to see whether the charity or fundraising organization has to be registered in your state or province or in your country.  Check to make sure that the charity you’re talking to is registered. If it isn’t registered, then you will know that it is a scam.  Do not send or give cash donations. Cash can be lost or stolen. For security and tax record purposes, it’s best to pay by cheques made payable to the charity. Never make the cheques payable to the person soliciting your money.  

Look in an online search engine for the organization that is contacting you or what you see as a TV ad. See if any of them have been written about as fake charity organizations. If nothing has been written about them, then either they are brand new or there are super clean. You can also check with your government that registers legitimate charities to see if they are even registered. 

Look in an online search engine for the organization that is contacting you or what you see as a TV ad. See if any of them have been written about as fake charity organizations. If nothing has been written about them, then either they are brand new or there are super clean. You can also check with your government that registers legitimate charities to see if they are even registered. 

And while I still have your attention, please send me money towards my own personal charity, Dahn Batchelor`s Hope Chest as I want to buy a twenty million dollar home for me and my wife and I don’t have the money to buy it yet. I promise you that if you send me money, I will pray to God to save your soul.  The larger the donation, the longer will be my prayer. Don’t delay. God is waiting to receive my prayer on your behalf.

How is that for a charitable fund raising attempt? Hey! Give me credit. At least it is original.