Connect with us

Finance

7 ways to avoid getting scammed by a ‘charity’ this holiday season

Published

on

A few years ago, a heart-wrenching story from New Jersey captured the nation’s attention. A couple, Katelyn McClure and her boyfriend launched a fundraiser to help a homeless man claiming he had used his last $20 to assist McClure when she ran out of gas. The tale struck a chord with thousands, leading to an overwhelming response on GoFundMe where donors contributed a staggering $400,000. However, this touching story soon unraveled, exposing a shocking scam. The money disappeared, and it was revealed that the couple had fabricated the entire narrative. Their deception ultimately landed them both in prison, serving time for their fraudulent actions. 

This cautionary tale highlights the need for doing copious research when donating to charitable causes, particularly during the holiday season when people are most inclined to give. While countless organizations and individuals genuinely need help, there are also those who exploit goodwill for personal gain. To ensure your donations make a real difference, here are some essential tips to avoid scams and protect your generosity. 

1. Verify charitable status with the IRS 

Before donating to any organization, start by confirming its legitimacy through the IRS’s Tax-Exempt Organization Search tool. This resource allows you to check whether the charity is recognized as a tax-exempt entity under Section 501(c) of the Internal Revenue Code.  

SAVE MONEY THIS HOLIDAY SEASON WITH WRAPPING TIPS YOU CAN MASTER AT HOME

Additionally, confirm that the organization is eligible to receive tax-deductible contributions. These two questions — whether the organization is tax-exempt and whether your donation is deductible — are critical in ensuring your funds go to a legitimate cause. If the answers to these questions are unclear, it’s better to hold off on donating. 

IRS headquarters

Check with the IRS if you want to determine if the donation you are making is tax-deductible. | The U.S. Flag flies above the International Revenue Service headquarters building on January 3, 2024, in Washington, D.C. (Photo by J. David Ake/Getty Images)

2. Research the charity’s financial practices 

Charities often advertise claims such as “a portion of every dollar goes to…” which might suggest that your contribution directly supports their mission. However, a deeper look at the charity’s finances can tell a different story. To investigate further, review the organization’s Form 990, a document that provides detailed financial information. This form outlines how the charity allocates funds, including the proportion spent on programs versus administrative costs, and reveals executive compensation. Understanding these details ensures that your donation aligns with your values and expectations. 

3. Differentiate between gifts and donations 

Crowdfunding platforms like GoFundMe have revolutionized charitable giving, allowing individuals to support personal causes or emergency relief efforts. However, it’s essential to recognize that contributions made to these campaigns often do not qualify as charitable donations.  

If the campaign organizer is not affiliated with a registered tax-exempt organization, your contribution is considered a gift and is not tax-deductible. To avoid confusion, always ask how the fundraiser is connected to the cause and how the funds will be used. This distinction between gifts and charitable donations can help manage expectations and prevent disappointment. 

4. Use charity ranking resources 

Several online platforms provide valuable insights into the legitimacy and effectiveness of charitable organizations. Charity Navigator is a popular website that evaluates charities based on financial health, accountability and transparency. It also offers resources such as trending charity lists, top ten rankings and donor tips.  

Similarly, GuideStar provides comprehensive information on nonprofits, including access to Form 990s and data on community foundations. By leveraging these tools, you can make informed decisions and ensure your contributions support reputable organizations.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

5. Explore donor-advised funds 

For a more strategic approach to charitable giving, consider using a donor-advised fund (DAF). This method allows you to contribute to a mutual fund company, securing a tax deduction for the calendar year. Your donation is invested and grows tax-free, giving you the flexibility to distribute grants to charities over time. DAFs are an excellent option for donors who want to maximize their tax benefits while maintaining control over how and when their funds are distributed. 

6. Always request a receipt 

Whether donating cash or non-cash items, always obtain a detailed receipt for your records. This step is especially crucial if you plan to itemize deductions on your tax return. For non-cash donations, you may need to complete Form 8283 to claim your deduction. Websites like satruck.org provide valuation guides for common items, helping you document their fair market value accurately. Keeping thorough records ensures compliance with tax laws and protects you in case of an audit. 

Several online platforms provide valuable insights into the legitimacy and effectiveness of charitable organizations. Charity Navigator is a popular website that evaluates charities based on financial health, accountability and transparency. It also offers resources such as trending charity lists, top ten rankings and donor tips.  

7. Protect yourself during the holiday season 

Scammers often exploit the holiday season to take advantage of unsuspecting donors. For instance, the U.S. Postal Service never sends unsolicited text messages or emails containing tracking links unless you’ve specifically signed up for them.  

CLICK HERE TO READ MORE ON FOX BUSINESS

Likewise, FedEx and UPS have resources on their websites to help distinguish legitimate communications from fraudulent ones. If you receive a suspicious message or fall victim to a scam, report it immediately to the FBI’s Internet Crime Complaint Center at www.ic3.gov

Charitable giving has the potential to transform lives and create lasting positive change. By taking the time to verify the legitimacy of the organizations you support, you can ensure that your generosity reaches those who genuinely need it. As you spread kindness this holiday season, remain vigilant against scams to protect yourself and your contributions. 

Ted Jenkin is CEO and co-founder of Oxygen Financial and president of Exit Stage Left Advisors.

CLICK HERE TO READ MORE FROM TED JENKIN

Continue Reading

Finance

Treasury Secretary Bessent says market woes are more about tech stock sell-off than Trump’s tariffs

Published

on

Treasury Secretary Scott Bessent speaks to reporters outside the West Wing after doing a television interview on the North Lawn of the White House on March 13, 2025 in Washington, DC. 

Andrew Harnik | Getty Images

Treasury Secretary Scott Bessent said Wednesday the sell-off in the stock market is due more to a sharp pullback in the biggest technology stocks instead of the protectionist policies coming from the Trump administration.

“I’m trying to be Secretary of Treasury, not a market commentator. What I would point out is that especially the Nasdaq peaked on DeepSeek day so that’s a Mag 7 problem, not a MAGA problem,” Bessent said on Bloomberg TV Wednesday evening.

Bessent was referring to Chinese AI startup DeepSeek, whose new language models sparked a rout in U.S. technology stocks in late January. The emergence of DeepSeek’s highly competitive and potentially much cheaper models stoked doubts about the billions that the big U.S. tech companies are spending on AI.

The so-called Magnificent 7 stocks — Apple, Amazon, Tesla, Alphabet, Microsoft, Meta and Nvidia — started selling off drastically, pulling the tech-heavy Nasdaq Composite into correction territory. The tech-heavy benchmark is down about 13% from its record high reached on December 16.

However, the secretary downplayed the impact from President Donald Trump’s steep tariffs, which caught many investors off guard and fueled fears of a re-acceleration in inflation, slower economic growth and even a recession. Many investors have blamed the tariff rollout for driving the S&P 500 briefly into correction territory from its record reached in late February. Wall Street defines a correction as a drop of 10% from a recent high.

Stock Chart IconStock chart icon

hide content

S&P 500, YTD

Trump signed an aggressive “reciprocal tariff” policy at the White House Wednesday evening, slapping duties of at least 10% and even higher for some countries. The actions sparked a huge sell-off in the stock market overnight, with the S&P 500 futures declining nearly 4% and the blue-chip Dow Jones Industrial Average shedding 1,100 points. The losses will likely but the S&P 500 back into correction territory in Thursday’s session.

“It’s going to be fine if we put the best economic conditions in place,” Bessent said in a separate interview on Fox Wednesday evening. “If you go back and look, the stock market actually peaked on the [DeepSeek] Chinese AI announcement. So a lot of what we have seen has been just an idiosyncratic tech sell-off.”

Continue Reading

Finance

Conservative cable channel Newsmax shares plunge more than 70% after a dizzying 2-day surge

Published

on

A Newsmax booth broadcasts as attendees try out the guns on display at the National Rifle Association (NRA) annual convention in Houston, Texas, U.S. May 29, 2022. 

Callaghan O’hare | Reuters

Shares of conservative news channel Newsmax plunged more than 70% on Wednesday as its meteoric rise as a new public company proved to be short-lived.

The stock tumbled a whopping 72% in afternoon trading, following a 2,230% surge in Newsmax’s first two days of trading after debuting on the New York Stock Exchange. At one point, the rally gave the company a market capitalization of nearly $30 billion — surpassing the market cap of legacy media companies like Warner Bros. Discovery and Fox Corp.

Newsmax was listed on the NYSE via a so-called Regulation A offering, instead of a traditional IPO. Such an offering allows small companies to raise capital without undergoing the full SEC registration process. The primary focus is to sell to retail investors, in this case It was sold to approximately 30,000 retail investors. 

The public offering indeed garnered the attention from retail traders, some of whom touted the stock as the “New GME” in online chatrooms. GME refers to the meme stock GameStop, which made Wall Street history in 2021 by its speculative trading boom.

Newsmax has a small “float,” or shares available for trading. Less than 6% of Newsmax shares, or 7.5 million shares out of a total of 128 million fully diluted shares, are available for public trading.

The conservative TV news outlet has seen its ratings rise with the election of President Donald Trump and other prominent Republicans — although it still falls behind the dominant Fox News. Overall, Newsmax ranks in the top 20 among cable network average viewership in both prime time and daytime, Nielsen said.

Continue Reading

Finance

Stocks making the biggest moves midday: TSLA, DJT, AMZN, RIVN

Published

on

Continue Reading

Trending