December 15, 2011                                         

LANSING - Attorney General Bill Schuette today issued a consumer alert to advise Michigan donors how to make educated choices about charitable giving during the holiday season.

"Michigan citizens have generous hearts, but before giving to charity, it's important to do your homework," said Schuette.  "The reality is, not all charities operate with charitable intentions, and scam artists will impersonate legitimate charities.  That's why I encourage everyone to take their time to carefully review all the information before making the decision to give, during the holidays and all year long."    

      During these hard economic times, it is more important than ever for citizens to take the steps to ensure their donations are used wisely.  To help donors find out more about a charity before they contribute, the Attorney General has created a website, www.michigan.gov/agcharitysearch, which provides information on a charity's IRS status, registration with Schuette's office, contact information, purpose statement, and financial data, including a breakout of how much is spent on fundraising, administrative costs, and the charitable program.

      In the consumer alert issued today, 'Tis the Season for Wise Charitable Giving, Schuette advises donors to beware of the following red flags that might indicate a charity scam:

• Bills or invoices sent to you even though you never pledged money to the organization;

• Evasive, vague, or unresponsive answers to specific questions about the charity and how money is used;

• Words making up a charity's name that closely resemble a more well-known charity;

• Allowing no time to reconsider your pledge; they insist on collecting your donation immediately.

• Refusal to answer questions about where your money will go, refusal to send information about the charity, or refusal to provide a receipt;

• Emotional appeals and high-pressure tactics to get you to make a quick decision or feel guilty about not contributing.

The consumer alert also includes suggested questions to ask before deciding whether to give to a charity, including:

• What is the contact information for this charity?

• Are you licensed to solicit by the Michigan Attorney General?

• What's going to happen to my donation?  How much will be used for the charitable purpose we're discussing?

• Is my donation tax-deductible?

Citizens who believe they may have been contacted by a sham charity are encouraged to file complaints with the Attorney General's office online at www.michigan.gov/ag (click the "File a Complaint" button).

In 2010, the Attorney General's office prosecuted a charity scammer who preyed on mid-Michigan residents' generosity by placing charitable donation collection boxes in nearly 90 local businesses as a part of a "Missing Children" charity scam.  Joseph Carr, 56, of Williamston, collected more than $10,000 from unsuspecting customers who were told their donations would be used to help find missing children through an organization called the "Beacon Project."  Instead, Carr used the money to pay his personal living expenses.  Carr was convicted of one count of false pretenses over $1,000, a felony, one count of soliciting charitable donations without a license, a six-month misdemeanor, and one count of acting as a professional fundraiser without filing a license application, a six-month misdemeanor.  In October 2010, Carr was sentenced by Judge Joyce Draganchuk, who ordered him to serve 60 months on probation, perform 480 hours of community service, and pay $12,000 in restitution to the Michigan Amber Alert Foundation to help locate missing children. 

Attorney General Schuette's consumer alert, 'Tis the Season for Wise Charitable Giving, is available online at www.michigan.gov/ag, and the full text is below. Schuette encourages residents with questions about charities to contact the Attorney General's Charitable Trust Section at 517-373-1152.

Schuette and Michigan nonprofits have also partnered to publish a joint brochure with tips for charitable giving, entitled Giving Wisely - Helping Michigan Citizens Be Savvy Donors. The brochure is available on the Attorney General's website at www.michigan.gov/agcharity .

 Click here to view a copy of the consumer alert on charitable giving.

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