Maybe it’s the scent of fresh-cut pine boughs, the site of
trees outlined in white lights, or the sound of cash registers ringing up
sales, but whatever it is, there’s something about the end of the year that
brings out a generous streak in us.
Sadly, the holidays are also a time when bogus charities try to take advantage
of everyone’s good spirits and willingness to give. So to make sure that you’re
giving to a real charity with a worthy cause, follow these giving tips from the
Better Business Bureau.
Ask Questions
When someone asks for a donation, whether in person or over the telephone,
don’t give immediately. Ask questions first.
-
What is the exact name of the organization?
Many unworthy charities use names that sound like the charities that everyone
knows about. Make sure that you know exactly which charity is getting your
money.
- What is the charity’s purpose?
Is it trying to cure a disease or help children with a specific problem? If a
charity is asking for your money, you have a right to know what it is trying to
accomplish.
- How is the group trying to meet its goals?
Does it give grants to researchers? Does it support research at universities?
Does it have its own shelters for abused teens? How does the organization try
to cure the disease or help the children? What specifically does it do?
- How much
of your contribution will actually go to the charity and how much goes to
professional fundraisers or administrative costs?
The Better Business Bureau Wise Giving Alliance suggests that a minimum of 60
cents of each contribution dollar should go to the charity itself.
- Is your
contribution tax deductible? Many would-be charities will tell you that
they are “tax-exempt.” All that means is that the charity itself does not have
to pay taxes. “Tax deductible” means a contributor can deduct donations to the
organization on his or her Federal income tax. So ask specifically if your
contribution will be tax-deductible. And if you are ever unsure about an
organization’s tax status, contact your
local IRS office.
The Better Business Bureau also suggests that you request written information
from the charity and ask if the person soliciting your donation is a volunteer
or a professional fundraiser.
If you are not convinced by any of the answers to these questions, do not donate
your money. A worthy charity has nothing to hide and will be happy to get your
contribution today, tomorrow, next week or next month. Only scam artists have
to get your contribution this very minute.
Check out the Charity
Once you get the written information from the charity, check it out with the
Better Business Bureau Wise Giving Alliance or the
American Institute of Philanthropy.
Both organizations can tell you how much of your contribution will go to
administrative costs (including professional fundraisers) and how much will
actually go toward helping the cause.
Write a Check
Always write a check, and make the check out to the charitable organization,
not the person asking for the donation.
Keep Track
Keep copies of your cancelled checks or receipts so you will be ready to deduct
the correct amount at tax time. Your records need to include the name of the
organization, the date and the amount of the contribution.
How to Spot a Scam
When in doubt, don’t give. Here are a few danger signs that the charity asking
for your donation isn’t worthy of your money:
-
It makes an emotional appeal.
If a solicitor tells you a story or shows you a brochure that brings tears to
your eyes, stop and think. What exactly does the charity do? Emotional appeals
are meant to get a knee-jerk reaction from you. If you can’t stop and think
about giving, don’t give.
- It can’t or won’t send written materials.
If a caller tells you that it’s too expensive or takes too long to send you
written materials about the charity, hang up. Many scam artists won’t send you
materials because the materials don’t exist or because the scam artists don’t
want to deal with the tough Federal laws against defrauding people via the U.S.
mail.
- Runners or others will come to pick-up your contribution.
Never give cash. It’s difficult to prove how much you gave when tax time rolls
around, and if you write a check, you’ll have time to actually think about your
donation. If the charity must have your money right now, you’re probably
dealing with a scam.
- You’re asked if you want to “pledge again this year,” but
you don’t think you pledged last year.
A popular ploy by unscrupulous phone solicitors is to ask you if you want to
“donate again this year” to the XYZ charity. The problem is that you might not
have donated last year at all. They just want to make you think that you did so
that you’ll give them your credit card number over the phone.
- You’re asked to buy
tickets to an event so that “underprivileged or handicapped” children can
attend.
Another popular ploy is to ask you to buy tickets to some local event such as a
circus so that some poor children can attend. Ask specifically what children
will be going and how they will choose these children. If you cannot get
satisfactory answers, hang up.
- It uses “police” or “firefighters” in its name.
If telephone solicitors call and say that they represent some law enforcement
or firefighter charity, make sure to get the exact name of the charity. Then
call your local law enforcement agencies and ask if they’ve ever heard of the
charity. Chances are it’s a scam.
- You’re told you need you to supply your credit
card number over the telephone. Never give your credit card number over
the telephone to a solicitor. Ask for the name and address of the charity. Look
the charity up online. And only then send them a check.
It’s good to give at the holidays. It’s a way to say “thank you” for all the
advantages you enjoy. If you follow these few simple rules about choosing a
worthy charity, you can feel good about giving and feel good about doing your
charity homework. Remember, a worthy charity is worthy all year long, so feel
free to make more frequent donations to charities that do a good job and use
your contributions wisely.
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