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4. 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, so unsuspecting donors usually do not even become aware of the fact that their generous and heart-felt contributions may have been wasted. Charitable contributions should actually 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:
Wise giving tips
- When giving to a charity, it’s important to confirm the organization is registered and current at http://www.checkthecharity.com.
- When receiving solicitation calls, ask if the caller is a paid solicitor, and if so, ask for their name and the name of their company, the paid solicitor’s registration number, and the percent of your donation that will go to charity. If they refuse to give you any of this information, do not give to that charity.
- Make a note of what charitable purposes or programs they said your donation would benefit and whether or not anyone will benefit locally. Call the charity itself to confirm the details of the solicitation and any local benefits.
- 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 the sound management and 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. Consider donating to existing charities which have experience providing targeted disaster relief and emergency hardship assistance in response to natural disasters.
- Bear in mind that donations earmarked for the benefit of a particular individual or family are not tax-deductible. Contributions to qualified charities may, however, be earmarked for flood relief, wildfire relief, or other disaster relief.
- Ask whether the charitable contribution is tax-deductible, and verify with your tax advisor or the IRS. The fact that a charity has a tax identification number does not necessarily mean your contribution is tax-deductible. Ask for a receipt showing the amount of the contribution and stating that it is tax-deductible.
- Watch out for charities with names that sound similar to well-known, reputable organizations. Sometimes these sound-alike names are simply intended to confuse donors.
- Be careful to not click on links to charities on unfamiliar websites or in texts or emails. These may take you to a lookalike website where you will be asked to provide personal financial information or to click on something that downloads harmful malware into your computer.
- Don’t assume that charity recommendations on Facebook, blogs or other social media have already been vetted.
- 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 wary if a 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.
- Do not pay in cash. Donate by check made payable to the charity or use the charity's website to donate by credit card.
- Be especially wary if the caller offers to send a courier to pick up your donation.
- If solicited in person, ask for identification.
- There is no need to give on the spot, whether to a telemarketer or door-to-door solicitor. If you feel pressured or uncomfortable, just say, "No, thank you" or hang up.
If you believe that you have been solicited by a fraudulent charity, please file a complaint with the Secretary of State, 303-894-2200, option 2, or the Attorney General, 1-800-222-4444.