Risk-free charity: How to distinguish an honest foundation from a scam
The desire to help others is a wonderful feeling, but it’s increasingly being exploited by scammers. How can you ensure your donation reaches those in need and doesn’t end up in a scammer’s pocket? This article offers clear recommendations to help you to do good deeds safely and consciously.
Heartbreaking posts asking for help regularly appear on social media and messaging apps. They often follow the same template: shocking photos, blurry scans of medical documents, text in all capital letters. Only the names, cities, and amounts change, but the bank card number for the transfer can remain the same. Scammers may refer to both fictitious and real charitable foundations, but the contact information of the “coordinators” listed in the ad has no connection to these organizations.
To ensure your donation is effective and reaches its intended target, you need to be intentional when choosing your charity. The safest way to help those whose situation can be verified: for example, by personally knowing the person requesting support, donating through the official website of a trusted foundation, or volunteering at a reputable animal shelter or hospice. If you encounter a charity request from an organization you’re previously unfamiliar with, it’s worth paying attention to the “red flags”.
The most common signs that should raise suspicion are:
- Lack of transparency
Legitimate nonprofit organizations are always open about their work, goals, and financial flows.
If the fund avoids providing reports or gives vague, contradictory answers in response to your questions, this is a serious cause for concern.
Example of fraudulent behavior:
When asked directly, “Where can I see your financial report?” the answer is evasive: “We’re a small organization, we don’t have time for paperwork, all the money goes straight to aid” or “We only send reports to large benefactors.”
Or the fundraising announcement only lists the individual’s card number, without the organization’s name, legal details, or agreement (offer). When asked for bank details for a transfer to the fund’s bank account, the bank begins to make excuses.
An example of the behavior of real funds:
The foundation’s website has a “Reporting” or “Finances” section, where detailed annual (and often quarterly/monthly) reports are publicly available, detailing income and each expenditure, with breakdowns such as “medications purchased,” “rehabilitation course payment,” and so on.
- Attempts to exert pressure
Scammers often use intimidation or manipulation tactics, demanding urgent transfers of funds “right now.” Genuine philanthropists respect your right to consider your decision and won’t rush you into making it.
Example of fraudulent behavior:
Phrases like “The child needs surgery tomorrow, if you don’t transfer him today, we won’t make it!”, “It’s urgent, others have already helped, what about you?”, or “If you don’t help now, it will be on your conscience.” In other words, the scammers are creating an artificial time crunch.
Or if you are constantly receiving calls or messages reminding you of an “imperfect donation,” aggressively asking you to “do a good deed right now.”
An example of the behavior of real funds:
In their newsletters and posts, foundations talk about their beneficiaries, but use neutral language: “Our goal is to raise the amount by (a certain date),” “Any help is important,” “Thanks to you, we can continue our work.” Genuine foundations inform, but don’t manipulate.
If you started a donation on the website but didn’t complete it, the foundation may send a polite reminder email (often automated), but will never call and demand an explanation.
- Vague goals
If a fundraiser can’t clearly explain what the funds will be used for, or if the information is constantly changing, it’s a sign of fraud. Active funds always clearly articulate their fundraising goals and are prepared to provide a detailed accounting of every penny spent.
Example of fraudulent behavior:
The fundraising description lists a general, vague goal: “fundraising for treatment,” “for living expenses,” “for rehabilitation,” without further explanation. When asked, “What exactly do I need to buy and at what cost?”, they respond, “I need money for everything at once” or “The doctors said I need a lot of money.”
Another sign of fraud is a constantly changing fundraising amount, which may be “open-ended” without a clear spending plan.
An example of the behavior of real funds:
The exact fundraising amount, with details, is listed on each beneficiary’s card on the foundation’s website. After payment, the foundation publishes scanned receipts or contracts.
If the fundraising is closed earlier, the foundation clearly communicates this and redirects any excess funds to help other beneficiaries, informing donors of this.
Safe donation guidelines
- Preferably use non-cash payments. Make transfers through the organizations’ official websites or using bank details. This creates a payment history and serves as proof of transfer.
- Check the foundation’s websites. Make sure the site has a secure connection (https://), contains clear contact information, and contains legal documents.
- Ignore pressure. Don’t give in to calls to act immediately. Honest charity gravitates toward a balanced decision.
- Avoid clicking on suspicious links. Be careful with social media and email campaigns. It’s better to find the foundation’s official website yourself than to click on a link sent to you.
- Report your suspicions. If you encounter obvious fraud, report it to the relevant authorities in your country.
How to check a charitable foundation?
Before donating, you can do a little fact-checking by yourself:
1. Explore the organization’s website. Start with the “About Us” section. Pay attention to the mission, goals, areas of work, and contact information. Browse through a few recent news articles to get a sense of the organization’s activity. However, a modern design is not the only indicator. Many organizations prioritize their resources for helping their beneficiaries rather than focusing on website aesthetics.
Alarm signal (Red Flag): overly emotional, manipulative text that plays on pity. Blurred, unreadable scans of documents and staged videos should be a cause for concern. Today, even a simple smartphone can take high-quality photos.
2. Find the report. In the “Reports” section, the fund should publish annual reports and, preferably, detailed public reports with numbers, project descriptions, and financial analysis. Some funds maintain transparent real-time tables of revenues and expenses, including independent audit reports.
It is important to be sure that the fund’s activities align with its stated objectives. The public offer is your primary contract with the fund. Carefully review how the funds will be used, whether donations can be refunded, and the conditions for doing so.
Alarm signal (Red Flag): If a foundation doesn’t have a public offering on its website, it’s not legally accepting private donations. Phrases like “spent on statutory purposes” or “administrative expenses” without further explanation raise doubts about its transparency.
Check the fund’s Taxpayer Identification Number (INN) and Primary State Registration Number (OGRN) (in Russia), Company Registration Number (in the European Union), Unified Social Credit Code (in China), CIN (in India), CNPJ (in Brazil), ACN and ABN (in Australia) to ensure that the organization is active and not in liquidation.
3. Learn about the team. A self-respecting organization is transparent about its team, board, and partners. Public profiles and media coverage add credibility.
Alarm signal (Red Flag): a lack of information about the team, photos, biographies, or social media links. A quick internet search may reveal articles or discussions related to the questionable activities of the foundation or its leaders.
4. Evaluate social media activity. Visit the foundation’s official pages. A lack of compelling content isn’t a big deal. However, if a fund has thousands of subscribers but no likes or live comments on its posts, it may indicate that the posts are being “boosted.”
Foundations, as a rule, share their work through the stories of their beneficiaries, project news, and event reports.
Alarm signal (Red Flag): text that plays exclusively on pity, contains manipulative phrases (“if you have a heart,” “it’s on your conscience”), but is poor in concrete facts and figures. A lack of visual content or, conversely, only staged photos should also raise concerns. Although foundations respect privacy, they usually find ways to showcase their work. For example, photos of procurement processes, equipment, and general event plans.
5. Look for independent ratings and accreditations. Trustworthy foundations are those that have accreditation from reputable international institutions. Check the availability of the organization on the following platforms:
– GuideStar (USA and worldwide): the largest database of non-profit organizations;
– Charity Navigator (USA): assigns ratings to foundations based on their financial health and transparency;
– GiveWell (USA). This platform focuses not on transparency, but on efficiency. GiveWell’s recommendations are a top list of the most effective charities in the world;
– Give2Asia. This is not a rating, but a large international intermediary fund that specializes in donations to countries in the Asia-Pacific region;
– Japan Council of Social Welfare (JCWS) / Central Community Chest of Japan. Japan has a well-structured national charity system. Accreditation at the government level and membership in such councils are signs of legitimacy;
– Singapore Council of Social Service (SCSS) / National Council of Social Service (NCSS). In Singapore, these government boards set standards and provide certifications for social services and charities, which serve as a quality marker;
– CERTP (The Committee to Encourage Corporate Philanthropy). Although this organization works with corporations, its research and standards in Asia influence the general principles of transparency in the region;
– BBB Wise Giving Alliance (USA): sets standards for charitable activities;
– Charity Commission (UK): the official regulator for English and Welsh charities;
– Blago.ru, Dobro Mail.ru, SberVmeste, the Need Help Foundation, and the Presidential Grants Foundation (Russia).
It is important to understand that a fund’s absence from international rankings is not a disadvantage if it operates within a single country. However, for organizations that claim to have extensive international activities, this absence may be a cause for concern.
A real charity should be transparent. Don’t hesitate to ask questions and verify information — this is the normal practice of a responsible donor who wants their donation to make a real difference.