Recurring Donations Are Surprising Consumers. Here’s How to Spot Them.

Money experts have long warned that forgotten subscriptions can drain your accounts. Recurring donations are something worth watching for, too.

Setting up regular philanthropic donations has become a common fundraising technique in the nonprofit world. Consultants publish guides on the practice, and the Federal Trade Commission urges people making donations to check that they haven’t inadvertently signed up to make a recurring gift. Consumers have lately spoken up about being charged for repeated contributions to political campaigns without their knowledge. Forms that require donors to opt out of recurring donations are often behind the mix-up, according to reports.

Donations to other types of nonprofits can also lead to issues. People may not realize—or may forget—that they agreed to make regular contributions, especially if the individual sums involved are relatively small, according to John Breyault, vice president of public policy, telecom, and fraud at National Consumers League, a nonprofit advocating for consumer social and economic justice.

“Any sort of $5, $10, $15 unexplained charges may not seem like a big deal,” Breyault said. “But multiply it over 12 months, and it’s not an insignificant amount of money.”

Consumers may want to keep an eye on donations now, Breyault said as fundraising efforts ramp up ahead of the midterm elections. Here’s how he and other experts suggest consumers protect themselves:

• Slow down. Take the time to read the details of what you’re agreeing to. “There’s often fine print on those websites, which can be hard to read on a regular screen, much less a mobile screen,” Breyault said.
• Make donations via credit cards. It’s easier to dispute credit card charges than other types of payments, Breyault said.
• Examine your receipts. They usually specify if a a gift is one-time or recurring, said Pamela Ladd, senior manager of personal financial planning at the American Institute of CPAs.
• Check your statements. Flag potential problems by looking through credit card and bank statements for unfamiliar names that repeatedly pop up. Repeated transactions that consistently end in a round number may be a clue, said Chuck Bell, director of advocacy programs at Consumer Reports.
• Review your budget. Check for unexpected line items in the subscription section of budgeting tools provided by your bank, Venmo, Apple Pay, and other financial service providers.
• Search your email. You may be able to uncover some insight—and more recurring donations—by searching your inbox for messages that contain phrases such as “thank you for your support,” “gift,” or “donation.”

If you discover unwanted donations, ask the recipient to cancel payments in writing and request written confirmation that they have done so, Ladd said. Monitor your next few statements to verify the payments have stopped. If the organization isn’t responsive, said Ladd, ask your bank or credit card issuer to block future donations and dispute payments.

It’s also an option to file a complaint with the Federation Trade Commission, an agency tasked with protecting consumers, or the Federal Election Commission, which oversees campaign finance matters.

If all else fails, ask your bank or card issuer to replace your debit or credit card, said Bell, of Consumer Reports. “I’ve had my card cancelled because of fraudulent charges, and each time that happens, all the billers have to chase me to get me to sign up again,” he said.

This article has been updated since it was first published to include additional information and suggestions.