Questions to Ask Before You Donate
Even in a bad economy, people still reach deep into their pockets to help
out those who are less fortunate, especially as the holidays draw near.
However, in good times or bad, it’s important to know that the money you are
giving to a charity is truly being put to good use. Many con artists try to
cheat people out of their dollars by pretending to be involved in a
legitimate charitable organization. The Iowa Society of Certified Public
Accountants offers these questions to ask to ensure you are avoiding charity
scams.
Can You Give Me Details in Writing?
A reputable organization should be happy to supply you with written
information that covers its address and contact details, what kinds of works
it is involved in and whether your donation will be tax deductible. You can
also learn more about individual organizations through the Better Business
Bureau at www.give.org. If the group
refuses to provide you with any information–or gives hazy answers about its
mission or its tax-exempt status–don’t turn over any money to them.
Should I Respond to This Email?
Many con artists use email to solicit donations for phony charities, so do
some research before sending money in response to an online appeal and never
reveal any personal or account information in an email.
How Much of My Money Really Goes to Charity?
Ask if the person or group soliciting the donation is a paid fundraiser, and
how much of your donation will actually go to those in need, rather than
paying for salaries or other administrative costs. Go to
www.charitynavigator.org to
see ratings of various organizations and a full report, including details on
how their money is spent.
How Long Have You Been in Business?
Every day the news brings compelling pictures of natural and manmade
disasters and other problems that leave people in need of help. Charitable
groups often seem to spring up out of nowhere to help, but even if their
intentions are good, donating to a brand new group may not be the best idea.
That’s because the group may not have the experience necessary to get the
job done. Your charitable dollars may be better spent by an organization
with a long history of responding to similar disasters or problems.
Remember, too, that disasters often bring out fraudulent organizations
trying to take advantage of the public’s generosity, so be particularly
careful when dealing with an unknown group.
Do I Have to Donate to Win a Prize?
Some groups tell you that your donation qualifies you to enter a contest for
valuable prizes. In fact, it is illegal to require you to make a donation in
order to win a prize. Donations to organizations that use this come-on are
probably not really going to those in need. And the “contest” is likely
bogus, as well. Find out also whether your donation is tax deductible, as it
should be when made to a legitimate charitable organization.
Can You Repeat the Name of Your Group?
Many phony operations choose names that sound just like legitimate,
well-known charitable organizations in order to con people into trusting
them. If you’re uncertain about whom you’re dealing with, contact the
better-known group to see if the solicitation is really from them.
Rely on Your CPA
Your local CPA can offer advice on how to spend your money wisely, whether
you’re making a charitable donation or putting together a family budget.
Turn to him or her with all your financial questions. If you are looking for a CPA, go to
www.findanIowaCPA.com.
