Phony Charities Target Holiday Spirit : Scams: It’s also prime fraud season. Authorities warn prospective donors to ask questions and never give cash.

Money that should be used to purchase stuffed animals and Christmas dinners for the needy each holiday season is sometimes diverted to phony charities, and consumers wishing to contribute to the less fortunate should be wary, authorities say.

The scams can vary widely, from door-to-door solicitation to telemarketing “boiler rooms,” officials warn.

“It’s really sad when it happens to an agency, because you have no control over who uses your name,” said Karen McGlinn, director of Share Our Selves, a Costa Mesa community group that was recently exploited by a man posing as a solicitor for the charity in front of a grocery store.

According to Daniel Langan, director of the National Charities Information Bureau in New York, $500,000 to $1 billion of the $106 billion given annually to churches and charities goes to scam artists or is otherwise misused.

“It’s a small percentage, but a lot of bucks,” Langan said.

Charities or organizations whose names have been used by phony solicitors in the past tend to be the more well-known, such as United Way, the Make-A-Wish Foundation, Share Our Selves, local boys and girls clubs and even the Red Cross.

Tips that experts give to avoid donating to phonies include:

* Don’t give to telephone or door-to-door solicitors. If someone does come to your door, ask for an envelope and address so you can mail a donation.

* Never give cash.

* Be leery of charity names that sound like other organizations, such as the National White Cross instead of the National Red Cross.

* Ask what percentage of the charity’s funds are for programs and services as opposed to fund-raising and administrative costs. Any administrative and fund-raising costs above 25% are questionable.

* Make sure the charity is registered as a 501 (c)(3) organization with the Internal Revenue Service. If it is, it is legitimate and your contribution is tax deductible.

* Ask if the charity is audited on an annual basis and, if so, whether a report is available.

In Orange County, the Disneyland Community Service Awards and other privately sponsored recognition awards programs screen and then recognize exemplary charities.

“If an organization can show they have earned these awards, it is a good sign because these panels thoroughly screen the charities,” said Marlene Eckert, vice president of marketing and public relations at Make-A-Wish Foundation in Irvine.

Another mark in a charity’s favor is to have a corporate sponsor or be the recipient of a private grant. Charities must be screened as part of the process for receiving grants from private organizations.

Donors can ask for a list of the charity’s board members; if the solicitor cannot provide this information, that is a red flag, according to Eckert.

People also can inquire whether the solicitor is raising money on a commission basis.

“If they are, that is not a good sign, because you want either a volunteer or a full-time employee of the organization to be soliciting,” said Eckert.

Be aware of solicitations for organizations that have no activities or presence in Orange County.

“In other words, none of the benefits go to Orange County residents,” said Bob Gannon, supervising deputy district attorney in the Orange County consumer environmental protection unit.

Consumers should also be suspicious if phone solicitors insist on getting donations immediately, or send out “runners” to pick up the money.

“Legitimate organizations are going to be there next week, next month, so they (donors) don’t need to express the money to them,” said Gannon. “There have been a couple times where the solicitor asked the donor to Federal Express the donation.”

The largest number of complaints filed by consumers with the Orange County district attorney’s office concern telephone solicitors who fraudulently pose as representatives of recognized charities, Gannon said, although no figures were available.

A donor’s best bet is to request everything in writing, said Langan, of the National Charities Information Bureau.

“If it is in writing you can be sure that 99% of the time they are honest, but you just shouldn’t give if you have any doubt,” said Langan.

However, even mail solicitation is subject to fraud.

In Los Angeles, Ruth Kwan, an attorney for the consumer protection section of the city attorney’s office, had a case where a phony solicitor used the letterhead of the Muscular Dystrophy Assn. to get gift certificate donations from businesses.

Across the nation, charities are spreading the word about phony solicitors with the holiday season in full swing.

“Our concern goes beyond anything that is specific to us,” said Make-A-Wish’s Eckert. “We want the public’s money to go where they think it is going, and we don’t want charitable organizations to be put in a bad light.”

Checking a Charity

Here are some sources you can use to check the legitimacy of a charity or to report a bad one:

IN ORANGE COUNTY:

* Better Business Bureau, (714) 527-8400

* District attorney, Consumer Protection Unit (to file a complaint), (714) 568-1200

ELSEWHERE IN CALIFORNIA:

* Attorney general, Registry of Charitable Trusts (to find out which charities are registered in California and current status), (916) 445-2021

* Los Angeles office of the attorney general for consumer protection, (213) 897-2000

NATIONWIDE:

* National Charities Information Bureau, (212) 929-6300

* Council of Better Business Bureaus, Philanthropic Advisory Service, (703) 276-0100

Source: Individual agencies and organizations