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Watch
for Charity Fraud
Give . . . but give wisely
Dec. 2003
Los Angeles Community Policing is a nonprofit organization,
and has gone through all the steps necessary to solicit contributions
to further our work. We're a 502(c)(3) California Corporation, have
permits from the City of Los Angeles, and have been awarded a Federal
Tax ID number, making any donations fully tax-deductable.
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Please
click here to read about LACP as a charity
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But
unfortunately there are many unscrupulous groups that prey on people's
desire to give money to a "good" cause.
This fall, we participated in helping inform the public of the need
to be careful when our founder, Bill Murray, was asked by the Los
Angeles Police Commission to act the part of a door-to-door solicitor
for a Spanish language PSA. Narrated by LAPD Police Commissioner
Silvia Saucedo, it's currently airing on Latin TV stations, and
was produced to warn residents not to trust such people at face
value (see description below).
At a Bi-Lingual Press Conference kicking
off the holidays, the public was warned to give wisely to charity.
Commissioner Silvia Saucedo, Assistant Chief George Gascón, and
Karen Wagener, Executive Director of the Los Angeles Police Foundation,
delivered the message in English and Spanish.
It was explained in English that unethical charitable solicitations
are rampant in Los Angeles, especially during the holidays. While
many charities operate within legal regulations, others do not.
For example, many groups operate under a name that is similar to
a well-known charity, however, they provide questionable services
to the Los Angeles community.
The number of victims is voluminous, but unknown, because the vast
majority do not realize they have been victimized. Tips were provided
on how to avoid becoming a victim of charitable fraud this holiday
season.
There is currently a form of fraud occurring in the Spanish speaking
community involving telemarketers posing as the "police department."
The solicitor calls and states that if a donation is not given,
police services may not be provided to them. The Los Angeles Police
Commission has produced a Spanish public service announcement addressing
this completely inaccurate claim.
The Spanish PSA was distributed at the press conference.
Here are the tips the Police Commission wants you to know about:
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DON'T BE A VICTIM THIS HOLIDAY SEASON TO CHARITABLE FRAUD
Tips on How to Spot a Fraudulent or Unethical Charity
Los Angeles - Every year millions of dollars are lost to
deceptive individuals posing as legitimate charities preying upon
the giving nature of individuals and businesses. It can be difficult
to discern between legitimate and unscrupulous solicitations without
the needed information to make sound judgements about whether or
not to give. During the holidays, this form of fraud is intensified.
Unfortunately, this crime usually goes unpunished because it is
not reported. Moreover, the victims actually do not know that they
have been victimized. Members of the public can stop this crime
by knowing the facts.
There are basically three types of charities:
Legitimate Charities - These charities provide needed goods or services
to the community and maintain a high percentage of funding dedicated
to the actual cause.
Legal, but Unethical Charities - These charities meet the minimum
requirements for a charity, but provide minimal goods and services
to the community. Their percentage of funding dedicated to the cause
is usually small compared to their administrative costs.
Fraudulent Charities - These are criminals posing as charities with
no legal basis whatsoever.
Legitimate charities provide wonderful services for the people of
Los Angeles, and the public is encouraged to be giving this Holiday
season, but always, investigate before you donate.
The Charitable Service Section of the Los Angeles Police Commission
can provide information on a charity's legal status and percentage
of funds dedicated to the actual cause as opposed to administrative
costs. The Charitable Services Section may be reached at (213) 978-1144.
Tips for Spotting an Unethical or Fraudulent Charity:
Police,
Fire and Sheriff Departments do not solicit contributions. Badge
fraud is a big problem in Los Angeles. Solicitors lead the donor
to believe their donation will help their local law enforcement
or fire department. That is usually not true.
Having "police" or "firefighter" in a name does not mean
police officers or firefighters are members of the group. Fraudulent
organizations use these words in their name because they know people
are more likely to make a donation.
Verify that a Los Angeles Police Commission Information Card
is available upon request. · Never give cash; always make contributions
by check to an organization.
Never feel pressured to give on the spot. Don't allow anyone
to intimidate you or bully you into giving or buying something "right
now."
Watch out for statements such as "all proceeds go to charity."
This can mean that the money left after expenses will go to the
charity.
Prepare a "giving plan" ahead of time, based on research,
so you do not feel pressured to give to everyone who asks for a
donation.
Be wary if a solicitor suggests you will receive special
treatment for your donation.
Always check out the charity before giving.
Useful Websites: www.give.org
& www.guidestar.org
& www.caag.state.ca.us/charities
Charitable Services Phone No: (213) 978-1144, or toll free: (800)
439-2909 and ask for 978-1144.
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Please
click here to read about LACP as a charity
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