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The need for an increase in charitable donations has been greater than ever and as willing as people are to give charity donation they are apprehensive to do so as they are not sure if the charity is for a genuine cause or it is just another charity scam.

Here are a few signs of charity scam:

Like the charity organizations and fundraisers scammers too use the regular way of contact – email, phone, social networking sites or face-to-face representatives. Knowing who is genuine and who is out to fleece you is nearly impossible. Be wary when donating if:

-    They refuse to provide you detailed information on the use of the donation money. Ask for information like mission, identity, costs of the charitable donations organization etc.
-    The name of the organization is similar to other famous reputable charity organizations
-    They do not provide you a receipt for your contribution. Just any receipt will not suffice; the receipt should have the full address of their registered office, their registration number authorizing them to receive donations with specific mention of the clause under which you can avail tax deduction on presenting the receipt to the government officials. Remember Australian charity donation recipients should have DGR certification if you are to avail tax benefit.
-    They thank you for pledging something that you don’t remember having made
-    They use high pressure tactics – make you donate immediately and not give you sufficient time to think or research
-    They ask for cash donations or to wire it to their account. All charitable donations must be made through cheque or credit card so that there is accountability
-    Promises winnings in sweepstakes against the contributions you make.

How are you to ensure that the money you give in charity donation and charitable donations is actually put to good use?  Here is a charity checklist:

-    When they contact you take all their information like name, address, telephone number, nature of project for which they are seeking the charitable donations. Research about the organization, you may be able to find most information online. Watch out for complaints or scams against them
-    Call their office and enquire if they are aware of such solicitation, have they authorized collection of such donation. The person contacting you to collect the donation should have valid ID proof naming him as their representative

If despite all precautions you find yourself being deceived, make sure of the social networking and the internet to pass the word around so that others become aware of such scammers. You can also take legal recourse but that would be time consuming.