Consumer Alert

Avoid scam charities on "Giving Tuesday"

Alaskans are always generous with their money and their time, especially at this point in the year when many people do a little extra to support charitable causes. Many nonprofit organizations place a special emphasis on the Tuesday after Thanksgiving, commonly known as “Giving Tuesday,” with fundraisers or campaigns for year-end gifts.

The vast majority of groups that identify as charitable organizations are reputable nonprofits with track records of helping those in need. However, some unscrupulous individuals or groups always try to find ways to separate consumers from their hard-earned money. So, ahead of this “Giving Tuesday,” Alaska Attorney General Treg Taylor urged consumers to make sure they are giving to worthwhile causes.

“Unfortunately, scam artists would do just about anything for a buck, even if it means misleading consumers into donating to a fake charity,” Attorney General Taylor said. “But there are some simple ways to avoid falling victim to fraudsters. Do some research and ask the right questions to make sure donations are used in the right ways.”

Attorney General Taylor said the best way for consumers to protect themselves against charity scams is to go online to make sure the charity is legitimate. There are several websites providing reviews and ratings of charities and how they spend their money. Those websites include Charity Navigator (charitynavigator.org), Charity Watch (charitywatch.org) and the Better Business Bureau Wise Giving Alliance (give.org).

In Alaska, charitable organizations and paid solicitors must register with the Department of Law before they seek contributions. Some organizations such as churches are exempt from the requirement, though most charities must register under state law. If an organization isn’t following the law by registering with the state, then consumers should be skeptical of its operations. To see if a charity or solicitor is registered in Alaska, visit the Department of Law website.

Attorney General Taylor offered these additional tips to Alaska consumers ahead of “Giving Tuesday”:

• Watch out for names of charities that look and sound like reputable groups. Scammers may choose these kinds of names to mislead consumers into thinking they’re legitimate.
• Avoid high-pressure sales tactics or groups unwilling to provide financial or organizational information. Legitimate charities won’t try to force consumers into donating and will give consumers as much information as needed for them to make a wise giving choice.
• Use caution when giving to people soliciting money on roadsides near large stores or shopping centers. Sometimes, consumers may think the solicitors are affiliated with the nearby stores or businesses when they are not.
• Make payments to the charitable organization itself, not to the person soliciting, and avoid donating with cash.
• With door-to-door fundraisers, require solicitors to identify themselves and their organizations. Contact the organization directly through its website or phone number in order to verify a solicitor’s identity.

For more information, visit the Alaska Department of Law website or call (888) 576-2529.

Consumer Protection Unit
November 2021