In the United States, a charitable foundation is an organization that has formalized the process of alleviating poverty, promoting education, supporting disaster relief, and/or assisting with community projects . Charities are non-profit organizations that can take the form of a non-operating private foundation (trust) or an operating foundation (public charities). When many of us learn of a tragic event that hits close to home, we lend our support with open hearts to help others in need. Unfortunately, with this act of kindness we may be creating a highly vulnerable environment for perpetrators of fraud and false charity scams. Charity fraud is the intentional act of deception committed by an individual or group of individuals asking for contributions in the name of a worthy cause. Charity fraudsters will take advantage of a tragic event to appeal to donors' compassion and empathy. They make material misrepresentations about their charity in order to gain the donor's trust and confidence, then use high-pressure methods to convince them to donate. Fraud in charitable organizations occurs when legitimate organizations or people working for the organization misuse donations, or when illegitimate organizations or individuals collect donations on behalf of a fictitious organization. Charity fraudsters exploit the generosity of their donors through a variety of means. Some individuals may attempt to attract the attention of a passer-by on the street by asking for money for the hungry or disabled, while others may use telemarketing scams in which the perpetrator tries to convince the potential donor of his legitimacy and the immediacy of the financial need for a worthy cause. Yet, the most u... half of the paper... nal Revenue Service (October 2011). IRS warns consumers of possible Hurricane Katrina relief scams. Retrieved from http://www.irs.gov/newsroom/article/0,,id=149266,00.htmlCharity Navigator (January 2012). Top 10 Best Practices of Experienced Donors. Retrieved from http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=419 Ross, B., Rackmill, J. (September 2005) Katrina Internet Charity Scams Attempts to Deceive Donors. ABC News, The Blotter. Retrieved from http://abcnews.go.com/Blotter/HurricaneKatrina/story?id=1106006&page=1Brill, B., Winer, S. (February 2012) Help clients choose the right charities. Accounting Journal. Retrieved from http://www.journalofaccountancy.com/Issues/2012/Feb/20114630.htmDavis, S. (March 2011) What is a Charitable Organization? Retrieved from http://smallbusiness.chron.com/charitable-organization-796.html