SCAM ALERT: Know where your money is going with crowdfunding efforts
When tragedy strikes, a common way to help victims out in this digital age is through crowdfunding sites like GoFundMe to raise money but as with everything online there are things to watch out for when you’re making a donation.
The BBB received more than 100 complaints about crowdfunding sources taking their money wrongfully.
The BBB offers these steps to keep you safe before making donations to crowdfunding sites.
Look for current information: If the campaign fails to provide information on their website such as written updates, how contributions will be used or photos, it could be a risky investment. Also, check to see if the business is active and sharing current product information on social media such as LinkedIn and Facebook.
Read the fine print: Sites need income to continue operating and many companies will take a small percentage of donations to cover expenses. Others may charge donors a fee. To give or receive funds, users will have to input personal information. Make sure to review the privacy policy as well as terms and conditions.
Start with trust: Several crowdfunding sites are BBB accredited. Take the time to read reviews and company responses at bbb.org/northwest. Sites should also be secure; steer clear of entering payment or personal information on unsecured sites or public WiFi.
Check the records: Investors donating any amount of money want to know that it is not going to a money launderer and the person running the campaign exists. Check court documents and look for any bankruptcies or records of previous business operations.
Don’t assume it’s deductible: Funding a project that is run by an individual or business instead of a charity may not be deductible as a charitable donation for federal income tax purposes.
