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Clark Howard's Tips

December 4, 2006

Every year around this time, criminals come out of the woodwork and set up fake charities either on the Internet or out of someone's home.

These companies collect your money and rarely give any to actual charities. Others have names similar to legitimate charities so people get duped into thinking they are the real thing.

One of the biggest scams lately is to make up phony diseases and then collect money to prevent them. These crooks often call to ask for your help and they push until you give in.

If someone calls to solicit money, you want to ask for literature. Many will hang up at that point. But if you do receive some information in the mail, you want to check out the charity watchdog sites mentioned above.

The sites also tell you what percentage of your money goes to the actual charity instead of "administration costs." If you're giving away your hard earned money, make sure the organization is worthy.

Consumer advice courtesy of