8. Tips on Wise Giving

Even though donors can usually rely on charities to be good stewards of their donations and to operate an efficient organization, it is still very important to be informed and cautious when considering your charitable giving options, especially in response to telephone solicitations. Unscrupulous solicitors rely on the fact that many donors do not monitor the use of their donations, so unsuspecting donors usually do not even become aware of the fact that their generous and heart-felt contributions may have been wasted. Your charitable contributions should actually reach the people in need of your assistance.

The Secretary of State offers the following wise giving tips to make sure that your charitable contributions are being used by legitimate organizations as you intended and not lining the pockets of scam artists:

Ask for the registration number of the charity and paid solicitor, and then confirm that the organization is registered and current with its filings at www.checkthecharity.com.
Make a note of the individual caller's first and last name and the name of the telemarketing company that employs the caller.
Ask the solicitor how much of the donation will go to the charity, whether the donation is tax deductible, and what charitable programs it will support.
If solicited in person, ask for the solicitor's identification and registration number.
Resist pressure to give on the spot, whether from a telemarketer or door-to-door solicitor, and beware if they thank you for making a pledge you don't remember making. If you feel uncomfortable, just say, "No, thank you."
Do not pay in cash. Donate by check made payable to the charity or use the charity's website to donate by credit card.
Make sure you are visiting the official website of the charity you wish to support, and beware of lookalike websites, especially if you are asked to provide personal financial information.
Research the charity's disclosure and financial statements on the Secretary of State's website.
Be wary if the charity fails to provide detailed information about its identity, mission, and finances and how the donation will be used. Reputable charities will gladly provide the information requested.
Watch out for charities with names that sound similar to well-known organizations. These sound-alike names are intended to confuse.
Be aware that charities are only exempt from the Colorado No Call list if they are properly registered with the Secretary of State.
Be aware that The Federal Trade Commission’s Telemarketing Sales Rule requires paid solicitors to put you on the charity’s internal Do Not Call list upon request.
You cannot deduct contributions earmarked for relief of a particular individual or family, even if they are made to a qualified charitable organization. Potential donors should inquire whether there is a trust or deposit account established for the benefit of the individual or family, contact the banking institution to verify the existence of the account, and check locally to confirm that there really is such a need. When you decide to contribute to an individual or family, do not give cash. If you feel uncomfortable about a solicitor on the phone, just say “No thank you” or hang up.

The Secretary of State has also posted a number of wise giving tips specific to internet and social media solicitations.

If you believe that you have been solicited by a fraudulent charity, please file a complaint with the Secretary of State (PDF), 303-894-2200, option 2, or the Attorney General, 1-800-222-4444.

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