OPINION: Watch out for fake charities during the giving season

You know the emails or online posts showing starving animals who need your help? Or the images of children in war-torn countries who could be saved with your donation?

Proceed with caution when you see these, particularly at this time of year when people are planning charitable giving and holiday scams are on the rise.

Of course, there are many legitimate charities that serve these causes and so many more. Giving to them is important, if you are able, especially in light of widespread federal funding cuts.

But be aware that “when the holiday season approaches, there is always an uptick in scams,” says Anthony Juzaitis, deputy director of Consumer Protection for the New Mexico Department of Justice.

One of the red flags that indicates possible fraud, he says, is a “sense of urgency that is manufactured … because this is a tear-jerk hot button issue.”

He recommends a “two-pronged analysis” before deciding whether to donate.

Start by making sure the organization soliciting money is registered in the state. New Mexico’s Charitable Solicitations Act requires organizations and professional fundraisers who work with them to register and file annual reports. Go to https://nmdoj.gov/charities/ and scroll down to “New Mexico Charity Search.”

The second step is to look at how the organization is spending money, specifically how much actually goes to the stated cause rather than administrative or marketing costs. You can find that information on the same website.

“If a charity is spending a very large percentage of revenue on fundraising, it doesn’t mean anything illegal is going on, but it might be important information for the consumer to know,” Juzaitis says.

Other sources for researching charities are the Better Business Bureau’s give.org; Guide Star at guidestar.org or Charity Navigator at charitynavigator.org.

If you are solicited on the street or by phone, pause before agreeing to contribute, says Chelsea Pitvorec, New Mexico Justice Department spokeswoman. The wiser approach is to wait until you can check out the charity, after which you can donate through its website.

However, get to the website independently rather than following a link or online instructions. Fake websites are easy to produce, and they can look legitimate enough to be persuasive — especially with the help of artificial intelligence tools. Scammers are known to play off a well-known organization by slightly tweaking its name.

Another red flag should go up if a solicitor asks for a donation via gift card, cash or wire transfer.

Sometimes, a third-party fundraiser will do the solicitation on behalf of an organization. Know that if you ask, the fundraiser is required to tell you how much of your donation will actually go to the charity.

Finally, keep a record of donations and review your credit card accounts to make sure you weren’t charged more than the amount you donated and that you didn’t inadvertently sign up for recurring payments.