Countywide : Scam Artists Know That ‘Tis the Season

Charity fraud represents the dark side of giving, not just because it literally robs money that otherwise would likely go to the needy, but because it also makes some less ready to make donations, officials of charitable groups say.

This year, scandal is shadowing the usual holiday appeals for giving.

In just the last two weeks, Orange County has been rocked by charges of corruption at two local charitable organizations. First, the former head of an Irvine homeless assistance group was charged with embezzling money. Then, three Orange County charities claiming to help homeless veterans and abused children and keep students off drugs were labeled frauds by law enforcement officials.

“This is still a big problem for us,” said Susan Davidson, director of the Adam Walsh Child Resource Center. “People give from their hearts. If you say you want to send a bunch of abused children to the circus, they give money. When they find out they’ve been suckered, they are reluctant to give any more.”

An estimated $9 million was taken from Orange County residents through telephone charity scams in 1991 alone. About 1,300 legitimate charities operate in Orange County alongside at least 300 unauthorized solicitors. Statewide, 65,000 legitimate charities go after donations while several thousand solicitors are not properly registered.

The state’s Registry of Charitable Funds keeps annual financial records from charities and handles some public complaints, though most fraud investigations are dealt with by city and county law enforcement agencies, said Sam Williamson, deputy registrar at the office. Any organization seeking money for charity must be registered with the state. Individuals are urged to call the registry at (916) 445-2021 and make sure a solicitor is listed before making a donation.

If someone telephones soliciting a contribution, state officials suggest that the recipient of the call ask what percentage of the donation will go to the charity. Door-to-door solicitors should also be asked to provide a card listing the charity’s official name. It is also important to find out where the money collected goes and whether the donation is tax-deductible, Williamson said.

As for mail solicitations, it is a good idea to request detailed information about the charity, law enforcement and charity officials agree.

When approached about events designed to benefit law enforcement agencies, people should always call the specific department to make sure the charity is legitimate, the officials say.

Officials from some of Orange County’s largest charities have long complained that ordinances covering charity fraud lack teeth and are inconsistent.

Davidson said she and other charity officials plan to ask county supervisors and local cities to coordinate their fraud ordinances, even if it means hiking the price of solicitation licenses to as much as $25.