Wise Giving Tips

Colorado Secretary of State Charities Team is reminding Coloradans to be vigilant of possible charity scams and has outlined some helpful tips for safe giving.

  • Check the registration status: Charities soliciting donations in Colorado and other states are required to register with associated offices in those states. Before making a donation, make sure to confirm that the charity is registered and up-to-date with its financial reporting by using the various search tools below.
  • When a tragic event occurs, consider donating to existing charities. These charities have experience providing targeted disaster relief and emergency hardship assistance in response to natural disasters.
  • Contact community foundations near the affected area. Community foundations have a strong sense of local needs and often have established disaster funds. They can also direct you to local charities that will know which members of a community are most vulnerable and hardest hit.
  • 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.
  • Be wary of social network fundraising or crowdfunding: If you are planning to donate through a social network solicitation or through internet platforms, first do some research. Find out if the money is going to a charity, to the platform, or to a person who set up the solicitation. Find out what percentage of your donation is going to the charity or for a charitable cause, and whether you will be charged a fee.
  • Make a note of the representations made regarding how your donation would be used, e.g. what charitable purposes or programs 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.
  • 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.
  • Understand the difference between “tax-exempt” and "tax-deductible": 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.

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.

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

Additional resources available from the Colorado Secretary of State’s Office include tips for internet and social media solicitations.