Consumer Alert: Know source of crowdfunding site before you donate

7,500 GoFundMe campaigns in Orlando in 2014

ORLANDO, Fla. – No more bake sales, car washes, or bank trust funds -- crowdfunding is the way to go these days. It allows family members, friends and even strangers to lend a helping hand. But beware, those sites aren't always legit.

[WEB EXTRA: Tips on avoiding crowdsource scams ]

GoFundMe raises more than $1 million a day and people are cashing in for a lot of reasons.

"One of my friends had a cat that needed surgery, so I did donate to it," Kaya Jones said.

"I've contributed to some individual friends who have come up against some hard times and I'm familiar with their story, and it's a way for us to come together and help them get back on their feet," Chelsea Hiland said.

In Central Florida currently there are more than 3,500 GoFundMe pages. In fact, Jones' friend raised more than $2,000 for her cat.

"I think it broadens the span of the people that you are getting the money from, so yeah, I think it's a great idea," Jones said.

And the popularity of the site is growing. In 2011, in Orlando, there were 173 GoFund Me campaigns. In 2014, that number was up to 7,448. In 2011, nearly $20,000 was raised for campaigns. Last year, $1.4 million was raised in Orlando alone.

"That's fantastic. I think that really says something about our community and people's willingness to be part of something bigger than themselves," Hiland said.

A few campaigns gained national attention, like James, who walked 21 miles to work. His story touched so many people that nearly $350,000 was raised on his behalf.

However, not all campaigns are on the up and up. Some people use national headlines for their own personal gain.

Major news outlets report the family of Eric Garner said they haven't received any of the money donated from 19 different campaigns set up by strangers to allegedly help their family.

Kim Garner of MoneyGram works to put scammers behind bars.

"This is what they do, this is their job, they defraud people for money, so they are always one step ahead. They are very good at what they do and very convincing," Garner said.

And the family of a little boy named Noah claimed they never saw a dime of the $6,500 raised to help pay his medical bills. The Illinois family said a relative who set up the account took all the money.

"If it's not the immediate person or family, whether it's a child, then that's what we would call a red flag," Garner said.

GoFundMe warns people to only donate to people they know. It said there is no way to be 100 percent sure a user's account contains accurate information.

Here are some tips you can follow to avoid trouble when it comes to donating:
• Do your research
• Check out social media and news sites to corroborate the story
• Check out the organizer's past accounts
• Ask questions; if they take too long to respond, that could be a sign
• The more information the organizer has on an account page the better
 


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