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“To give away money is an easy matter and in any man's power. But to decide to whom to give it and how large and when, and for what purpose and how, is neither in every man’s power nor an easy matter.” Aristotle
The Statistics: More than a million public charities, private foundations, and other non-profits are registered in the U.S., according to the IRS. In addition, over 350,000 religious congregations serve in our communities. Eighty-nine percent of American households make charitable contributions. Also, 83.9 million adults volunteer, which translates into a value of $239 billion!
With these numbers, it is clear that charities are a big business and Americans are a giving people. So many organizations are soliciting for contributions—through the mail, online, over the phone, and in person. Before making any contribution, do your homework.
- Research the charity. How long have they been around? Read up on their financial information.
- Never give out your personal or financial information, including your social security number, credit card number or bank account numbers.
- Ask for written contact information and their mission. A legitimate one will gladly provide the information.
- Ask for identification if you’re approached in person—are they a paid fundraiser or someone who works or volunteers directly for the charity. By law, they have to identify themselves and the charity they work for.
- Be wary of look-a-like names—phony charities will use a name that sounds very similar to well known and respected ones.
- Ask how your donation will be distributed. How much will go to the program you want to support and how much will go into administrative costs?
- Don’t give or send cash; use checks for security and tax purposes.
- Be wary of emotional and high-pressure appeals—typically, legitimate charities won’t push you to give money on the spot. Beware if they offer to send an overnight courier to collect your donation.
- Know the difference between tax deductible and tax exempt. Even if an organization is tax exempt, your contribution may not be tax deductible.
It pays to be cautious when making a donation and essential that your money will benefit the people and organization you intend to help. Here are some websites that can help you:
Better Business Bureau’s Wise Giving Alliance at www.give.org
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