Beware Timeshare Donation Scams

As a courtesy to timeshare owners everywhere we have listed several of the most common timeshare donations scams.

1. Lead Generators- Timeshare companies pay anywhere from $5 to $50 per lead that is generated when you submit your information through a lead generation portal. Most of these websites out there are just landing pages for lead generation brokers. Be careful what you are submitting to.

2. Upfront Fee- We have yet to meet someone who sold their unit for even one half the developer cost through a listing agent/resale broker. Be careful paying up-front fees to a company that makes big promises. They may take your $500-$2,000 and disappear. Fraudulent companies usually get in touch with you by phone, mail or via the internet requesting that you call a phone number about your time share resort resale. The person you speak with will likely claim that the market is "hot" for time share resort resale, when the truth is that the market changes based on location and what the prime season for that particular unit is and right now the market is far from hot. For a fee you pay in advance of somewhere around $300 to $2000, some of these people will promise to sell your timeshare for a profitable or at least break even price. They might even claim that they have a list of sales agents and potential buyers that would be interested in your time share resort resale. While this person may very well possess these lists, it is not likely that the parties are interested in a time share resort resale. To further convince you, they may even offer you a money-back guarantee or a government bond if they fail sell your timeshare within a certain time frame. The result is usually that your time share resort resale or donation never happens. Then, in many cases, your fee is not returned and the bond you receive is fake or is often for a as little as 10% of the fee you paid in advance.

3. Consignment Fee- There are some companies that will charge you a fee to take the timeshare off your hands but are really only trying to sell it on a consignment basis. This means that if they can't find a buyer soon enough for them to sell it and make a profit then you will be out the up-front money and still be stuck with the timeshare responsibility. When you choose a company make sure they guarantee the timeshare will be transferred and recorded out of your name before you do business with them.

4. Look-A-Likes- Many scam donation companies have stolen articles, images, and original content as well as using similar names to some of the more reputable companies in order to steal business. Some of these companies actually look like great charitable organizations and are set up as non-profit companies but keep the proceeds and don't actually benefit a credible charity.

5. Tax Deduction Scams- Many timeshare donation companies would like you to think that you can deduct more money than you actually can from your income tax return for a timeshare donation. Some timeshare donation outfits claim to help people get tax deductions of over $20,000. That's not credible! The fact is the IRS requires that any deductions over $5,000 require a professional appraisal. The first catch to this is that most appraisals cost at least $500. The second catch is that most appraisal companies won't back up the appraisals if you were ever to be audited by the Internal Revenue Service. Several of these companies have even ripped off millions of dollars in appraisal fees before they were finally caught. The state of Florida and many others are trying to make this illegal. As the economy worsenes the IRS is cracking down more and more on suspicious deductions. IRS agents know that timeshares are worth very little and know that most donated timeshare sell for under $100. Remember, timeshares are only worth what someone is willing to pay for them.

6. Scam Prevention Tips- Look carefully at a company's web site and make sure it is legitimate and not just a landing page for a lead broker. Make sure the site is functional, up-to-date and obviously being used by many clients. Check online with Google or any other search engines and try to find reviews on the company that you are looking into. Contact the charities listed on the company's website and verify that the company is authorized to raise money on their behalf. If you have any questions or doubts about a company or their procedure then ask them directly. Usually you will have your questions answered in a timely manner. If not, then you got your answer anyway.

Go To Online Timeshare Donation Submission Form