The North Grove is going public about an attempted donation scam to warn other charities as giving season approaches.
“The North Grove was not defrauded, but we want everyone to know about this type of scam,” says Executive Director Wendy Fraser. “End of year is the busiest time for nonprofits that rely on fundraised dollars to meet community needs.”
Staff contacted about memorial donation
The North Grove was recently contacted via email by an individual who claimed their spouse had died and left a gift to The North Grove in their will.
It is not uncommon for charities to receive unexpected gifts from wills. The North Grove responded to the donor who then connected the organization to their lawyer.
Concerns from the outset
“From the beginning we wondered whether this was a real donation,” says Fraser. “We couldn’t find an obituary online, and the names given were extremely common. Then the email address for the lawyer was named for a department, not an individual.”
“We didn’t expect the donation to materialize. But then a very official looking cheque and donor direction letter arrived from the United States. We have received substantial donations like this in the past, so that put our questions to rest. With the exchange rate the gift was significant, just over $100,000,” says Fraser.
The North Grove, a community hub offering food, family support, and other services in Dartmouth North, relies on fundraising for almost 50% of its $2.4 million budget.
As soon as the cheque arrived The North Grove alerted the donor and the lawyer, as requested, and deposited the cheque. That’s when things took a turn.
Donor claims error in cheque amount
The donor reached out right away and said the cheque had been issued for the wrong amount. They asked The North Grove to immediately return a portion of the gift via cheque.
“That’s when we knew it was a scam. We told the donor we would be in touch when the cheque cleared. We then contacted our bank to alert them.”
The cheque did not clear and The North Grove reported the fraud to the appropriate authorities.
Exchange rate costs organization
“A gift of this size is so important to an organization like ours. It can pay for food for thousands of people or make summer camp available to hundreds of children. It is so disheartening that this kind of scam is out there, targeting organizations like ours,” says Fraser.
While The North Grove was not defrauded of any funds, the U.S. exchange rate went up after the cheque was cashed, costing the organization $900.
“It could have been so much worse, if we were new to fundraising, but it’s still frustrating to lose even a cent over this. We hope that sharing our story will warn others.”
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For more information on reporting fraudulent activity see https://ised-isde.canada.ca/site/office-consumer-affairs/en/money-debt-and-giving/donations-and-charities
Media contact:
Makayla Cole
902-464-8234 ext. 1003
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