By Rick Abercrombie
On October 24, Doug Renew, Chief Investigator for the Office of the Secretary of State, spoke to the Optimist Club of St. Andrews-Irmo. Renew’s area of concentration for his presentation included both the pitfalls and sensible guidelines for charitable giving, particularly during the holidays.
Renew laid out an overview of the giving atmosphere that will increase steadily from now through the holiday season. He pointed out that while the U.S. is known for its generosity, charitable giving is on a slight decline. Historically, the giving public becomes more generous and active during the late Fall, early Winter time period. Scam artists know this pattern well and tend to ramp up their appeals to exploit the situation.
Along with just general seasonal activity increase on the part of scammers, the tactics are likely to be higher-pressured and urgent. A few of the reasons Renew cited for this upsurge are:
1. THE ECONOMY: inflation—at whatever level it exists—reduces buying power. Scammers know this and some of their seemingly desperate tactics are a result of realizing that there is a shrinking number of potential givers and funds.
2. TAX POLICY: fewer taxpayers find they are able to meet the thresholds for itemizing deductions, so the “tax deductible” label for a charity loses effectiveness.
3. PET ADOPTIONS ON THE DECLINE, A SYMPTOM: Because of all the pressures on income, pet shelters report that they are full, which results in a sad increase in euthanasia. Unfortunate, but unavoidable.
4. SOUTH CAROLINA’S PROFILE OF GENEROSITY: Nationally, 67 percent of Americans give to one form or another of charities, which amounts to over 75 million donors and/or volunteers. Our state is perennially in the top half of the U.S., contributing $2.7 billion to charities, representing 4.2 percent of household income. If the general population knows it, then scammers know it as well.
5. RESULT: Smaller pool of potential candidates with less disposable funds.
With all of these combined factors, the Secretary of State’s Office urges its constituents to “Give from the heart, but please give smart.” Renew unveiled a “Give Smart SC” app which has just recently been activated.
Renew dedicated much of his talk to telephone fundraisers and their tactics. Bear in mind that because of the factors listed, those callers may seem desperate. Renew’s advice follows:
If the callers do not admit that they are paid fundraisers, none of the rest of what they have to say has any validity. The best option is to hang up.
If the caller passes the first criteria — and the listener can always hang up anyway — they should reveal the charity for whom they are working. They should be willing to disclose how much of the solicited funds actually go to their charity. Renew stated that a reasonable minimum should be 65 percent. That standard comes from the Better Business Bureau. Any higher percentage, if true, is a plus. South Carolina even has a “Giving Angels” designation for charities that meet or exceed an 80 percent level.
It is acceptable to ask whether the charity is national in scope or if a donation will remain in the local community.
Another check on validity would be to request a copy of the charity’s most recent financial statement and a copy of the fundraiser’s registration with the S.C. Secretary of State. For donations to be tax-exempt, the charity must have a current 501 ( c )( 3 ) certification on file with the Office of the Secretary of State.
Adopting these suggestions accomplishes two things: It forces the fundraisers to be patient. Any sign of impatience should arouse suspicion It “smokes out” scam artists who often insist on an immediate decision, eliminating any vetting by the potential donor.
Finally, donors should be suspicious of requests for payment by:
Cryptocurrency
Bank transfers
Prepaid gift cards
Prepaid debit cards
Wire transfers
Cash
Credit cards where the charity’s credentials still seem suspicious
Pictured are speaker host Mike Johnson, Doug Renew, and Club President David Kafitz, who presented the speaker with a copy of the Optimist Creed.
