Q&A: Office Supply Scams

Is our church at risk?

I recently learned of a church in our community that was a victim of an “office supply scam.” What exactly does this mean? Are all churches vulnerable to this risk?

The Federal Trade Commission says that churches and other charities lose millions of dollars each year to this scam. Here is the FTC’s description of how it works: “The typical scam involves goods or services that a group routinely orders, such as copier paper, maintenance supplies, classified advertising, etc. Fraudulent telemarketers will call an organization and lie to get it to pay for items it didn’t order, or to get it to pay more than it agreed to for the goods. The office supplies peddled by these bogus firms are often overpriced and of poor quality and the services usually are worthless.”

To protect your church from being victimized, the FTC recommends the following steps:

  • Know your rights. In some cases the law allows you to treat unordered goods and services as a gift.
  • Review the church’s phone bills and credit card statements as soon as they arrive. Look for charges for goods and services you haven’t ordered or authorized.
  • Assign all purchases to designated staff, and document all purchases.
  • Train staff in how to respond to telemarketers. Advise employees who are not authorized to order goods and services to say, “I’m not authorized to place orders. If you want to offer or sell us something, you must speak to _____________.”
  • Buy from people you know and trust. Authorized employees should be skeptical of “cold” or unsolicited calls and feel comfortable saying “no” to high pressure sales tactics. Check out the supplier with the Attorney General or Better Business Bureau in your state or the state where the company is located before you send any money for any product or service. This is prudent, but not foolproof: there may be no record of complaints if an organization is too new or has changed its name.
  • If you think your church has been victimized, contact the Federal Trade Commission. Complaints can be filed by contacting the Consumer Response Center by phone: 1-877-FTC-HELP; by mail: Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave, NW, Washington, DC 20580; or at www.ftc.gov.
Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

ajax-loader-largecaret-downcloseHamburger Menuicon_amazonApple PodcastsBio Iconicon_cards_grid_caretChild Abuse Reporting Laws by State IconChurchSalary Iconicon_facebookGoogle Podcastsicon_instagramLegal Library IconLegal Library Iconicon_linkedinLock IconMegaphone IconOnline Learning IconPodcast IconRecent Legal Developments IconRecommended Reading IconRSS IconSubmiticon_select-arrowSpotify IconAlaska State MapAlabama State MapArkansas State MapArizona State MapCalifornia State MapColorado State MapConnecticut State MapWashington DC State MapDelaware State MapFederal MapFlorida State MapGeorgia State MapHawaii State MapIowa State MapIdaho State MapIllinois State MapIndiana State MapKansas State MapKentucky State MapLouisiana State MapMassachusetts State MapMaryland State MapMaine State MapMichigan State MapMinnesota State MapMissouri State MapMississippi State MapMontana State MapMulti State MapNorth Carolina State MapNorth Dakota State MapNebraska State MapNew Hampshire State MapNew Jersey State MapNew Mexico IconNevada State MapNew York State MapOhio State MapOklahoma State MapOregon State MapPennsylvania State MapRhode Island State MapSouth Carolina State MapSouth Dakota State MapTennessee State MapTexas State MapUtah State MapVirginia State MapVermont State MapWashington State MapWisconsin State MapWest Virginia State MapWyoming State IconShopping Cart IconTax Calendar Iconicon_twitteryoutubepauseplay
caret-downclosefacebook-squarehamburgerinstagram-squarelinkedin-squarepauseplaytwitter-square