Checklist before you Donate
Take the following few precautions to make sure your donation benefits the people and
organizations you want to help.
v Ask for detailed information about the charity, including name, address,
and telephone number.
v Get the exact name of the organization and do some research. Searching the
name of the organization online — especially with the word “complaint(s)” or
“scam”— is one way to learn about its reputation.
v
Call the charity. Find out if the
organization is aware of the solicitation and has authorized the use of its
name. The organization’s development staff should be able to help you.
v
Ask if the caller is a paid
fundraiser. If so, ask:
ü
The name of the charity they
represent.
ü
The percentage of your donation
that will go to the charity.
ü
How much will go to the actual cause
to which you’re donating.
ü
How much will go to the
fundraiser.
v Keep a record of your donations.
v Make an annual donation plan. That way, you can decide which causes to
support and which reputable charities should receive your donations.
v Know the difference between “Tax Exempt” and “Tax Deductible.”
ü Tax exempt means the organization doesn’t have to pay taxes.
ü Tax deductible means you can deduct your contribution on your federal
income tax return.
v Never send Cash Donations. For security and tax purposes, it’s best to
pay by check — made payable to the charity — or by credit card.
v Never wire money to someone claiming to be a charity. Scammers often
request donations to be wired because wiring money is like sending cash: once
you send it, you can’t get it back.
v Do not provide your credit or check card number, bank account number or
any personal information until you’ve thoroughly researched the charity.
v Be wary of charities that spring up too suddenly in response to current
events and natural disasters. Even if they are legitimate, they probably don’t
have the infrastructure to get the donations to the affected area or people.
v If a donation request comes from a group claiming to help your local
community (for example, local police or firefighters), ask the local agency if
they have heard of the group and are getting financial support.
Courtesy: https://www.consumer.ftc.gov/
