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Charity Checklist: Precautions to Take Before Giving
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Tags: Charity, Giving to Charity
Consider the following precautions to ensure that your donation dollars benefit the people and organizations you want to help. They’re good practices whether you’re contacted by an organization’s employees, volunteers or professional fund-raisers, soliciting donations by phone, mail or in person.
| | Be wary of appeals that tug at your heart strings, especially pleas involving patriotism and current events. |
| | Ask for written information about the charity, including name, address and telephone number. |
| | A legitimate charity or fund-raiser will give you information about the charity’s mission, how your donation will be used and proof that your contribution is tax deductible. |
| | Check out the charity’s financial information. For many organizations, this information can be found online at www.guidestar.org or at GuideStar, 427 Scotland Street, Williamsburg, VA 23185; 757-229-4631. |
| | Ask for identification. The Telemarketing Sales Rule requires for-profit fund-raisers to disclose the name of the charity requesting the donation.. If the solicitor refuses to tell you, hang up and report it to law enforcement officials. |
| | Call the charity. Find out if the organization is aware of the solicitation and has authorized the use of its name. If not, you may be dealing with a scam artist. |
| | Check with local recipients. If giving to local organizations is important to you, make sure they will benefit from your generosity. |
| | Watch out for similar sounding names. Some phony charities use names that closely resemble those of respected, legitimate organizations. |
| | Know the difference between “tax exempt” and “tax deductible.” Tax exempt means the organization doesn’t have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return. |
| | Beware of organizations that use meaningless terms to suggest they are tax exempt charities. For example, the fact that an organization has a “tax I.D. number” doesn’t mean it is a charity; every nonprofit and for-profit organization must have a tax I.D. number. |
| | Be skeptical if someone thanks you for a pledge you don’t remember making. If you have any doubts about whether you’ve made a pledge or previously contributed, check your records |
| | Ask how your donation will be distributed. How much will go to the program you want to support (as opposed to other programs of the nonprofit), and how much will cover the charity’s administrative and telemarketing costs? |
| | Refuse high pressure appeals. Legitimate fund-raisers won’t push you to give on the spot. |
| | Be wary of charities offering to send a courier or overnight delivery service to collect your donation immediately. |
| | Consider the costs. When buying merchandise or tickets for special events, or when receiving “free” goods in exchange for giving, remember that these items cost money and generally are paid for out of your contribution.. |
| | Be wary of guaranteed sweepstakes winnings in exchange for a contribution. According to law, you never have to donate anything to be eligible to win. |
| | Avoid cash gifts. Cash can be lost or stolen. For security and tax record purposes, it’s best to pay by check. |
Lister:
Angie
Source:
FTC
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