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Be cautious about crowdfunding

posted Jul 10, 2014, 2:37 AM by Siamak Ebarhimi

For years, scammers have exploited people’s sympathy by setting up fake charities supposedly to help those in need. But these heartless crooks now have a new way to divert donations to their own pockets, according to the N.C. Attorney General’s Office.crowdfunding marketing

Crowdfunding is when someone sets up a way for people to make donations, usually online, for a cause such as helping someone cover hospital bills after an illness or accident. Although many of these efforts are legitimate, hosting websites like Kickstarter and GoFundMe don’t screen those who want to set up a fundraising operation.crowdfunding advertising

These campaigns can be started by people who make up a fake tragic story to swindle you out of your money. Or sometimes the tragic story is real, but the person raising the money is completely unknown to the victims and their families.indiegogo marketing

North Carolina law requires that a charity get permission before fundraising in a person’s name.kickstarter marketing

To avoid getting pulled into an illegitimate crowdfunded project, know who and what you’re really donating to.kickstarter project

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By David Khorram