Consumer Alert: Charity fundraising and a new phone scam

In this week's Consumer Alert, a viewer wants to check how much donated money a charity actually spends on charity, and an old IRS phone scam is making its rounds with a new twist. A News 12 New Jersey

News 12 Staff

Jun 18, 2016, 2:56 AM

Updated 2,880 days ago

Share:

Consumer Alert: Charity fundraising and a new phone scam
In this week's Consumer Alert, a viewer wants to check how much donated money a charity actually spends on charity, and an old IRS phone scam is making its rounds with a new twist.
A News 12 New Jersey viewer says he recently got a call from a charity asking for donations, but he found that the group actually ended up spending less than 10 percent of its raised money on charity.
News 12's Walt Kane had already investigated the Breast Cancer Survivor's Foundation in 2012 and reached a similar conclusion: For every dollar the group raised, just 9 cents went to programs.
The newest data available, from 2014, shows the group raised $3.8 million in donations, according to its tax returns. Out of that, $2.9 million went to pay fundraisers and telemarketers, which actually means more of the money went to charity. The data shows that 24 percent of donations to the group now go to charity.
The practice is not illegal, but people seeking to donate to a charity can check to see which groups give the most money to charity in the end.
Another viewer wrote to News 12 New Jersey saying that she received a scam call.
The scammer told her that she was due to receive $8,000 from the government for paying her taxes on time and having a clean criminal record.
The viewer says her husband, a 911 dispatcher, had already received calls regarding the scam.
It works like this: The scammer will claim they need the victim's bank account information to wire them the money. Then the scammer will clean out the bank account instead.
Like a lot of scams, it comes down to common sense. There's no reward for paying taxes and obeying the law, and people should not give out their bank account information.
If you get that call, just hang up.


More from News 12
2:08
STORM WATCH: Isolated storms expected in New Jersey late Tuesday into Wednesday morning

STORM WATCH: Isolated storms expected in New Jersey late Tuesday into Wednesday morning

2:03
Deadline to get a Real ID is in one year. Here's what you need to know

Deadline to get a Real ID is in one year. Here's what you need to know

0:28
TSA officers arrest Florida man for having loaded gun packed in carry-on bag at Newark airport

TSA officers arrest Florida man for having loaded gun packed in carry-on bag at Newark airport

0:35
Police: Elmwood Park man drove drunk, struck 8 vehicles; 3 injured

Police: Elmwood Park man drove drunk, struck 8 vehicles; 3 injured

0:25
Paterson man faces slew of charges in connection to armed kidnappings

Paterson man faces slew of charges in connection to armed kidnappings

2:03
Best of New Jersey: A taste of everything the Dunellen Hotel has to offer

Best of New Jersey: A taste of everything the Dunellen Hotel has to offer

0:29
Walmart reaches settlement in class action lawsuit

Walmart reaches settlement in class action lawsuit

0:33
Atlantic City man sentenced for drug induced deaths of tourists

Atlantic City man sentenced for drug induced deaths of tourists

0:26
Man killed in two-car Egg Harbor Township crash

Man killed in two-car Egg Harbor Township crash

0:48
Congressional action may help New Jersey seniors targeted by scams

Congressional action may help New Jersey seniors targeted by scams

0:37
Police: Man arrested after locking woman in crawl space in Atlantic City

Police: Man arrested after locking woman in crawl space in Atlantic City

2:09
Middletown moves forward with cheaper parking to offset NJ Transit fare increase

Middletown moves forward with cheaper parking to offset NJ Transit fare increase

0:48
Authorities: Construction worker who suffered fatal fall worked for K&D Contractors

Authorities: Construction worker who suffered fatal fall worked for K&D Contractors

0:21
Rutgers president to testify before Congress on antisemitism on college campuses

Rutgers president to testify before Congress on antisemitism on college campuses

2:06
First weekend of Newark’s youth curfew debuts to great success

First weekend of Newark’s youth curfew debuts to great success

1:41
Death of New Jersey state trooper during training incident prompts investigation

Death of New Jersey state trooper during training incident prompts investigation

0:50
Jersey Proud: Somerset charter school competes in World Robotics Championship in Texas

Jersey Proud: Somerset charter school competes in World Robotics Championship in Texas

0:16
Police: Hoboken man facing weapons charges in road rage incident

Police: Hoboken man facing weapons charges in road rage incident

2:42
Jersey Shore surfer whose 20-foot wipeout went viral helps rescue struggling swimmer

Jersey Shore surfer whose 20-foot wipeout went viral helps rescue struggling swimmer

2:11
Seniors learn about potential scams as Rep. Gottheimer introduces legislation to protect them

Seniors learn about potential scams as Rep. Gottheimer introduces legislation to protect them