Throughout the year we all find ourselves being solicited for a donation to this charity or that charity, all seem like worthy causes but during the holiday season we are inundated with letters, phone calls and Emails from every type of charity you can think of. All of them throwing words like “Christian”, “children”, “orphan”, “hunger”, “homeless” into their plea for money. Unfortunately many of these charities are fraudulent and prey on the generosity of us seniors.

Seniors are a prime target for charity fraud. Most seniors have learned sympathy for others, have little experience with fraud, and often have a little cash lying around the house. Seniors are less likely to be suspicious or stingy and on average think more about ‘reaping what they sow’. In general, we’re nicer and more giving.

Charity conmen, and conwomen, take advantage of this, showing up at the door, calling on the phone or sending official looking Emails and asking the senior to donate money to hungry children or whatever the cause of the day may be. Even at an average of a few dollars per person, the conman easily takes in hundreds of tax free dollars per hour. If he sets up a few workers and pays them off, he can make much more than that.

Aside from being illegal, charity fraud occasionally makes headlines (remember the stories of the FEMA fraud after Katrina) and makes people less confident about giving their money away to legitimate charities. Charities lose the money that is given to the conmen plus suffer the consequences of lost confidence in charities in general. Though these conmen can and do go to jail, the jail sentences are relatively insignificant compared to the potential gain and the risk of getting caught.

We all want to be generous, especially during this wonderful holiday season, but if you are thinking of giving to a charity the Federal Trade Commission offers these important tips:

• Be wary of appeals that tug at your heart strings, especially pleas involving patriotism and current events.
• Ask for the name of the charity if the telemarketer does not provide it promptly.
• Ask what percentage of the donation is used to support the causes described on the solicitation, and what percentage is used for administrative costs.
• Call the charity to find out if it’s aware of the solicitation and has authorized the use of its name.
• If the telemarketer claims that the charity will support local organizations, call the local groups to verify.
• Discuss the donation with a trusted family member or friend before committing the funds.
• Don’t provide any credit card or bank account information until you have reviewed all information from the charity and made the decision to donate.
• Ask for a receipt showing the amount of the contribution and stating that it is tax deductible.
• Understand that contributions made to a “tax exempt” organization are not necessarily tax deductible.
• Avoid cash gifts. They can be “lost” or stolen. For security and tax record purposes, it’s best to pay by check – made payable to the charitable organization, not the solicitor.

It really doesn’t matter if the solicitation is made door-to-door, at the mall, over the phone, through Email or the nice looking young man wearing the white shirt and tie, the bottom line is that you must be cautious and alert. I received an Email from the American Cancer Research Society of America. To look at the logo you’d have sworn it was the American Cancer Society, but it was a fake. A good enough fake that I’m sure people have and will send a donation without realizing it isn’t the American Cancer Societies real site, thereby depriving the real charity from dollars that would help in it’s real mission.

Feeling good about helping our fellow man is the real reward we’re all looking for during this joyous time of the year. When we hear that bell ringing on the street corner and see the red kettle we should automatically reach into our pockets and give. Giving is in our nature but it is this goodness that the bad guys prey upon. Using common sense and looking at the solicitation just a little closer this year will make you more generous and giving because you will know that the dollars you’re giving will keep on giving and isn’t that the real meaning of the holidays. Be safe this year and be scam wise!

Fred L. Goldenberg is a Certified Senior Advisor and the owner of Senior Benefit Solutions of Michigan. He is a founding member of the Senior Resource Alliance of Northern Michigan.