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Number of Canadians Concerned about Charity Fraud Up Considerably

CanadaHelps and Capital One Canada launch the second annual charity fraud awareness quiz with $20,000 grand prize

Toronto, ON (February 24, 2011) – Canadians are generous donors, but two-thirds (65%) of them are worried about fraudulent charities, which is up considerably from a survey done in November 2009 (51%). These beliefs, coupled with the difficulty in recovering their lost donation, ultimately results in more than half of Canadians (53%) stating they are less likely to give to charities because of concerns about fraud.

A large proportion, (41%) say they do not take simple steps to check if a charity is registered, ask the solicitor for ID, or visit the charity’s website before making a donation and instead rely on the reputation of the charity, and/or, past personal experience with the charity. The survey also found that just over half of Canadians (52%) say they are not confident they would know where to turn to in the event their donation did not go to a legitimate cause.

“What concerns us most is the growing number of Canadians who are worried about these crimes,” said Owen Charters, CEO of CanadaHelps. “In educating Canadians to understand the warning signs of these scams, we hope that the well-earned trust in legitimate charities will remain high and Canadians’ eagerness to donate will continue to grow.”

Today’s survey also found that up to 22% of Canadians say they prefer to donate online – an 8 point climb from a similar study conducted in November 2009. In contrast the number of Canadians who say they prefer to donate by cheque is down 7 points over the same time period (from 32% to 25%). Younger Canadians appear to be a driving force behind this change – nearly a third of Canadians aged 18-34 (31%) say online donations are their preferred method.

“With more and more Canadians preferring to donate online, it is increasingly important for credit card users to understand what to look for to ensure they are donating through a legitimate and secure website,” said Laurel Ostfield, spokesperson, Capital One Canada. “We know that awareness is key in helping Canadians protect themselves from fraud. By partnering with CanadaHelps on this campaign, we hope to educate as many Canadians as possible so they are empowered to make safe, charitable donations.”

To educate the public about charity fraud, Capital One Canada and CanadaHelps are teaming up during Fraud Prevention Month for the second annual Charity Fraud Awareness Quiz. This quiz will help participants identify the signs of charity fraud to hopefully avoid these malicious schemes.

The online Charity Fraud Awareness Quiz is designed to inform Canadians about the risk of charity fraud and how to prevent it. Accessible at www.canadahelps.org, every participant who completes the quiz will be eligible to enter into a draw to win a $20,000 grand prize donation, or one of $1,000 weekly donations from Capital One, to be made to the winner’s charity of choice. The Charity Fraud Awareness Quiz runs from March 1-31, 2011.

Capital One and CanadaHelps offer the following charity fraud prevention tips:

  • Make sure the charity is registered with the Canada Revenue Agency (CRA) and provides you with their charitable registration number. CanadaHelps.org only lists charities registered with the CRA.
  • Ask to see a charity’s financial statements. These should be readily available to anyone who asks and give you a sense of how the charity spends their money.
  • Understand the impact the charity has and what difference they make in the community. Charities should be able to give you clear outcomes of the programs or services they provide.
  • Research the causes you want to support and how much of your budget you want to donate to charity. You will feel less pressured to give when solicited if you have already planned your giving.
  • Avoid any charity that pressures you into making a donation or isn’t open to sharing more information about their organization.

Additional Survey Results

  • 77% of Canadians made a charitable donation in the past 12 months with women being more charitable (81%) than men (72%)
  • Over one-quarter (28%) of people report they are solicited for charitable donations at least weekly, with 45% saying they get solicited more often in the event of a natural disaster
  • In the wake of a natural disaster, the majority of Canadians (61%) report an increased concern over the possibility of charity fraud
  • While only 5% of Canadians overall prefer to donate via door-to-door solicitation, a surprising 22% of Atlantic Canadians prefer this method of solicitation
  • In terms of deciding who to trust, respondents said the most important factor is a charity’s reputation (53%) followed by its media coverage/advertising (31%) and being asked to donate by a friend or colleague (30%)

About the survey

From February 2nd to 3rd, Angus Reid Public Opinion conducted an online survey among 1,008 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error-which measures sampling variability-is +/- 3.1%, 19 times out of 20. The results have been statistically weighted according to the most current education, age, gender and region Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.

About the Charity Fraud Awareness Quiz No purchase necessary. Each person who completes the online quiz on charity fraud at www.canadahelps.org and provides the name of their preferred charity is automatically given one entry. Organizations must be federally registered charities with the Canadian Revenue Agency. Contest begins at 9:00:00 a.m. ET on March 1, 2011 and closes at 9:00:00 p.m. ET on March 31, 2011. Full contest details atwww.canadahelps.org. Skill testing question required. Four prizes of a $1,000 donation and one grand prize of a $20,000 donation available to be won. Not open to residents of the Territories.

About Capital One Located in Toronto, Ontario, Capital One has offered Canadian consumers a range of competitive MasterCard credit cards since 1996, when the company first introduced the Platinum MasterCard in Canada. Capital One Canada is a division of Capital One Bank, a subsidiary of Capital One Financial Corporation of McLean, Virginia (NYSE: COF).

About CanadaHelps CanadaHelps is an online donations website where donors can give safely and securely to all charities in Canada that are registered with the Canada Revenue Agency. The mission of CanadaHelps is to engage Canadians in the charitable sector and provide accessible and affordable online technology to both donors and charities to promote – and ultimately increase – charitable giving in Canada.

Contact: Laurel Ostfield, Capital One 416-549-2753 laurel.ostfield@capitalone.com

Owen Charters, CanadaHelps 416-628-6948 ext. 2384 owen@canadahelps.org

 

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