I am thinking about a donation. What should I consider?

Donating either money, time or assets is a big decision, both personally and financially. It should not be taken lightly. Bottom line, consider a donation like an investment in a project, ideal or organization you are passionate about. If you cannot afford it. DON’T DONATE. You can help in other ways, simply by getting the word out about the organization you want to help. Most donations come from repeat donors followed by referrals.

The Federal Trade Commission provides some things to consider when looking to donate:

Four Things To Do Before You Donate to a Charity

1. Search online for the cause you care about. Search for terms that describe the cause — like “hurricane relief” or “homeless kids” — plus phrases like “best charity” or “highly rated charity.” Some organizations like BBB Wise Giving Alliance and Charity Watch have curated lists of well-rated charities. Once you find a specific charity you’re considering giving to, search its name plus “complaint,” “review,” “rating,” “fraud,” or “scam.” If you find bad reviews, consider finding another organization.
2. Check out the charity’s website. Does it give you details about the programs you want to support or how it uses donations? How much of your donation will go directly to support the programs you care about? If you can’t find detailed information about a charity’s mission and programs, be suspicious.
3. Find out if the fundraiser and charity are registered. Most states require charities and their fundraisers to register with the state regulator. Check to see if a fundraiser and the charity they’re calling on behalf of are registered with your state’s charity regulator.
4. Check to see if the donation will be tax deductible. If this is important to you, confirm that the organization you’re donating to is registered with the IRS as a tax-exempt organization. Look up the organization in the IRS’s Tax Exempt Organization Search Tool.

How You Pay When You Donate

If you’re ready to donate

• Pay attention to how you pay. If a charity says the only way to pay is with cryptocurrency, wiring money through Western Union or MoneyGram, a payment app, or a gift card, it’s likely a scam.
• Donate by credit card or check. It’s the safest way to donate. If the charity doesn’t accept checks or credit cards, it’s likely a scam.
• If you’re donating online, make sure the webpage where you enter your payment information has “https” in the URL. That means your information is encrypted and transmitted securely. But encryption alone doesn’t mean the site is legit. Scammers know how to encrypt, too.

After you’ve donated

• Review your bank account and credit card statements. Make sure you’re only charged the amount you agreed to donate ― and that you’re not signed up to make a recurring donation if you didn’t mean to.
• Keep a record of all donations. You may need them later if your donations are tax deductible.

If you sent money to a scammer, read What To Do if You Paid a Scammer for advice on how to try to recover your money.

How To Avoid Donating to a Fake Charity

• Don’t rush. Scammers try to rush you into donating, so you don’t have time to research their claims or think it through.
• Don’t trust your caller ID. Technology makes it easy for scammers to fake caller ID information. Calls can look like they come from your local area code, or from a specific organization, even if they don’t. In reality, the caller could be anywhere in the world.
• If the fundraiser says you already pledged, stop and check. The caller or mailer may lie and say you already pledged to donate, or that you donated to them last year. They think that means you’ll be more willing to donate.
• Listen carefully to the name of the charity, write it down, and then research it. Some scammers use names that sound a lot like real charities to confuse you. Do some research before you give.
• Watch for sentimental claims with few details. Be suspicious if you hear a lot of vague sentimental claims — for example, that the charity helps families that can’t afford cancer treatment or veterans wounded at war who can’t work — but the charity doesn’t give specifics about how it will use your donation.
• Don’t donate for a guaranteed prize. If someone guarantees you’ll win a prize or contest if you contribute, that’s a scam. You won’t win anything, and your donation will go to a scammer.
• Don’t click on links or respond to unexpected texts. If you get an unexpected text message asking you to donate, don’t use the information in the text message. Contact the charity or visit its website and donate directly to the charity.
• Don’t click on links or open an attachment in an email unless you know the sender. These attachments can include malware that can steal information from your computer.