Credit unions are sometime approached by members seeking to open and account for the benefit of victims of a disaster or tragedy. Does the credit union want to risk opening an account for someone who might be scamming the public? Or where donations may not be tax deductible? Credit unions may be on the hook for fraud under some scenarios.
In this consumer tip, the FTC urges the public to be cautious of potential charity scams. It urges doing some research to ensure that a donation will go to a reputable organization that will use the money as promised. The guidance may be helpful to credit unions as well.