5. 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 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; as a result, unsuspecting donors usually do not even become aware of the fact that their generous and heart-felt contributions may have been wasted. Charitable contributions ought to reach the people in need of assistance.

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

General wise giving tips

Ask if the charity or fundraiser is registered with the Secretary of State. Visit www.checkthecharity.com to review the charity’s filings. The registration filings include the charity’s registration number, information about the organization's leadership, mission, financial efficiency, and its use of commercial fundraisers. Paid solicitors file solicitation notices that disclose the solicitor’s compensation, and the duration and charitable purpose of their solicitation campaigns.
Know the charity. Volunteer, ask friends about charities they know, or request written information from the charity. Make sure you understand and support the charity’s mission before deciding to give. Legitimate charities will be happy to send you information or answer your questions.
Request a copy of the organization’s Form 990, which is an annual information return filed with the IRS. The Colorado Secretary of State and websites like GuideStar post images of recent Forms 990, so it’s also easy to look up yourself, especially if you know the organization’s federal employer identification number (EIN).
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.
Confirm how much of your donation will go to the organization’s program(s) versus its administrative or fundraising expenses. If it’s important to you, designate which particular programs you want your donation to support.
Verify the official name and website of the charity you wish to support. Beware of any names that sound similar to well-known organizations and beware of lookalike websites, especially if you are asked to provide personal financial information.
Give directly to the charity to ensure more of your donation goes to the charity’s mission and programs, rather than to a third-party fundraiser.
Confirm the tax-deductibility of donations from the organization’s website, solicitation materials, or regulatory filings. Tax-exempt does not necessarily mean donations are tax-deductible. If you’re not sure, ask.
Do not pay in cash. Donate by check made payable to the charity or use the charity's website to donate by credit card.

Tips for telephone solicitations and in-person (face-to-face)

While the general tips listed above are important in all giving decisions, the Secretary of State has also posted tips specifically tailored for telephone solicitations. These include:

Ask if the caller is a paid solicitor. If they are, ask for the name and registration number of the paid solicitor who employs the caller and confirm their registration status on the Secretary of State’s website.
Ask what percent of your donation will go to the charity versus to the telemarketer.
Did the caller say the money would be used locally? How important is that information to you?
Be especially wary if the caller offers to send a courier to pick up your donation.
Do not allow the caller to use inappropriate pressure tactics or harass you into making a donation. If you’re uncomfortable, say no thank you or hang up.
If solicited in person, ask for identification.

Tips for internet and social media

The Secretary of State has posted tips specifically tailored for internet and social media solicitations, including:

Don’t assume that charity recommendations on Facebook, blogs, or other social media have already been vetted. Research the charity yourself.
If you want to set up a peer-to-peer fundraising page, please contact the charity beforehand to get permission to use its name and to make sure the representations you make on your page are correct.
Be extra vigilant when donating online in the wake of natural disasters or national tragedies. Some charities are formed shortly after these events and may have the best of intentions; however, an existing charity is more likely to have sound management and the experience to quickly respond to these situations, and it will have a track record, which you can review. And, unfortunately, sham charities often pop up to take advantage of people’s generosity during these times.

If you believe that you have been solicited by a fraudulent charity, please file a complaint with the Secretary of State (PDF) or the Attorney General.

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