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SALT LAKE CITY — Checking state records to see if a charity is registered is not enough to figure out if it’s legitimate, according to a professor at the University of Utah.
Sometimes, bogus charities register themselves just to seem legitimate.
"The scammers are pros. They’re good,” said Steve Ott, who teaches public administration at the U. and sits on the board of directors for the Utah Nonprofits Association.
Ott said the bad guys are very adept at using sob stories to get people to donate to their bogus charities: “They’re experts at tugging at you heart,” he said.
They'll often use names that sound very similar to big, well-known charities. Sure, it's good to check with the state to make sure a charity is registered, but it's far from a guarantee that you will not get ripped off.
Ott said the state and federal government offer minimal oversight: “There is very, very little capacity to be aggressive and go after and look for fraud,” he said.
It’s better to ask the prospective charity for its financials — items like cash balances and tax forms — and ask them how much of their donated income actually goes toward their programs.
If it's a transparent non-profit, you can get as much information as you want. If it's a non-transparent, I wouldn't touch it.
–Steve Ott, Utah Nonprofits Association
“If it’s a transparent non-profit, you can get as much information as you want," he said. "If it’s a non-transparent, I wouldn’t touch it."
Another red flag is a charity that says it can only take cash: “What that means is they don’t want anybody to follow them, trace them,” Ott said.
And watch out for gifts from supposed charities, such as address labels. Scammers use those to browbeat people into paying them.
“You are under no legal, moral, ethical obligation whatsoever to send them money," Ott said. "You may use those and you may smile all the way."
He advised getting to know the charity before providing a credit card number. He suggested donating time instead of money right away, and checking charity rating websites such as Guidestar.org or CharityNavigator.org.
