10 red flags to consider before giving to a charity

Giving to charity is an act of generosity that can make a difference. Unfortunately, scammers often prey on people with good will. Whether you've been asked outright for money or uncovered a cause that you care about on your own, taking steps to avoid fraudsters can help you make the most of your heartfelt contributions.You're asked to wire money.Charities that ask you to pay in cash only or wire money to the cause should raise a red flag. According to the Federal Trade Commision, you should "never wire money to someone claiming to be a charity. Scammers often request donations to be wired because wiring money is like sending cash: once you send it, you can't get it back."The charity is brand new.A charity without a solid reputation isn't necessarily risky, but it deserves a closer look. Charities that pop up overnight, especially in times of severe trouble, warrant even more consideration."After virtually every disaster, scam artists come out of the woodwork to defraud individuals wishing to help victims," former California Attorney General Jerry Brown warned. "Give only to reputable organizations so their donations don't end up lining the pockets of criminals and opportunists."The charity won't stop calling.The Center for Investigative Reporting notes that cold-calling donors is one of the most expensive ways to raise money. "Charities that use paid telemarketers often let the fundraisers keep 80 to 90 cents of every $1 raised. Most of the money you think is going to needy veterans or dying kids is paying telemarketers' overhead and profit."If a charity won't stop contacting you, listen to your instincts to steer clear of giving to the specific cause. See the rest of the story at Business Insider
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