Page 22 - Indulge December/January 2016
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LET THE GIVER BEWARE:
HOW TO CHECK UP ON
BEFORE DONATING By Linda Doell
22 | INDULGE • DECEMBER/JANUARY 2016 Giving to a favorite cause or charity is part of many warning flag about the group’s legitimacy. Even small
people’s gift lists during the holiday season, but local groups with less than $50,000 in annual receipts
just like the Grinch, some groups may be looking more to are required to file reports with the IRS to keep their tax-
line their pockets with cash than actually help those they exempt status.
claim to support.
Another way to check into charities is to look up their
Others could be scams. info on GuideStar.org, which posts information about
Just this spring, the U.S. Federal Trade Commission IRS-registered nonprofit groups, including programs,
and all 50 states charged four cancer charities with finances, impacts and reputations of each group.
bilking more than $187 million from people with the
majority of the donations allegedly going to expenses LOOK TO THE BBB
rather than to help cancer patients.
The key is to do your homework before making a The Better Business Bureau also keeps tabs on
donation. charities through its give.org site.
“You wouldn’t purchase a stock, a car or even a book
without checking its ratings and reviews,” says Sandra The BBB uses 20 standards to measure a charity,
Miniutti, vice president, marketing and CFO of Charity which look at the charity's finances, how the group is
Navigator, a nonprofit that evaluates charities. “Why run, is it effective and how accurate is its informational
would you invest in a charity, with the intention of materials. The BBB grades each category with a simple
making the world a better place, without first making met standard, didn't meet or unable to verify.
sure the charity is doing good work?
“The good news is that the majority of charities work In addition to the national charities, check with the
very hard to be efficient, ethical and effective,” she says. local BBB chapters for reviews of local groups.
“But with 1 million charities in America today, there are
ineffective charities as well as flat out scams. Thus, it is SIGNS OF A SCAM
critical that donors take just a little time to look under the
hood and ensure the charity is worthy of their support.” In our mobile world, staying connected is easier
At the minimum, you should examine the charity’s than ever with tablets, smartphones and Wi-Fi hotspots.
finances, look at its effectiveness and if it is accountable Unfortunately, it makes it just as easy for scammers to
and transparent in its practices, she says. reach out to try to play on your goodwill.
CHECK WITH THE IRS The Federal Trade Commission offers the following
tips to help determine if a fundraising caller is a
Tax-exempt groups and charities need to register with legitimate charity or possibly a scam:
the IRS to get that status and the agency has a number
of hoops the organizations have to jump through to • The caller refuses to provide information about the
qualify for the status. group's identity, mission, costs and how the donation
will be used.
This should be considered a first step in checking
out a charity. If the IRS doesn't have it listed on its • The caller won't provide proof that a contribution is
searchable database, www.irs.gov/Charities-&-Non-Profits/ tax deductible.
Exempt-Organizations-Select-Check that should raise a
• The caller uses a name that closely resembles a
better-known, reputable group.
• The caller thanks you for a donation you don't
remember making.
• The caller asks for cash donations or for you to wire
the money.
HOW TO CHECK UP ON
BEFORE DONATING By Linda Doell
22 | INDULGE • DECEMBER/JANUARY 2016 Giving to a favorite cause or charity is part of many warning flag about the group’s legitimacy. Even small
people’s gift lists during the holiday season, but local groups with less than $50,000 in annual receipts
just like the Grinch, some groups may be looking more to are required to file reports with the IRS to keep their tax-
line their pockets with cash than actually help those they exempt status.
claim to support.
Another way to check into charities is to look up their
Others could be scams. info on GuideStar.org, which posts information about
Just this spring, the U.S. Federal Trade Commission IRS-registered nonprofit groups, including programs,
and all 50 states charged four cancer charities with finances, impacts and reputations of each group.
bilking more than $187 million from people with the
majority of the donations allegedly going to expenses LOOK TO THE BBB
rather than to help cancer patients.
The key is to do your homework before making a The Better Business Bureau also keeps tabs on
donation. charities through its give.org site.
“You wouldn’t purchase a stock, a car or even a book
without checking its ratings and reviews,” says Sandra The BBB uses 20 standards to measure a charity,
Miniutti, vice president, marketing and CFO of Charity which look at the charity's finances, how the group is
Navigator, a nonprofit that evaluates charities. “Why run, is it effective and how accurate is its informational
would you invest in a charity, with the intention of materials. The BBB grades each category with a simple
making the world a better place, without first making met standard, didn't meet or unable to verify.
sure the charity is doing good work?
“The good news is that the majority of charities work In addition to the national charities, check with the
very hard to be efficient, ethical and effective,” she says. local BBB chapters for reviews of local groups.
“But with 1 million charities in America today, there are
ineffective charities as well as flat out scams. Thus, it is SIGNS OF A SCAM
critical that donors take just a little time to look under the
hood and ensure the charity is worthy of their support.” In our mobile world, staying connected is easier
At the minimum, you should examine the charity’s than ever with tablets, smartphones and Wi-Fi hotspots.
finances, look at its effectiveness and if it is accountable Unfortunately, it makes it just as easy for scammers to
and transparent in its practices, she says. reach out to try to play on your goodwill.
CHECK WITH THE IRS The Federal Trade Commission offers the following
tips to help determine if a fundraising caller is a
Tax-exempt groups and charities need to register with legitimate charity or possibly a scam:
the IRS to get that status and the agency has a number
of hoops the organizations have to jump through to • The caller refuses to provide information about the
qualify for the status. group's identity, mission, costs and how the donation
will be used.
This should be considered a first step in checking
out a charity. If the IRS doesn't have it listed on its • The caller won't provide proof that a contribution is
searchable database, www.irs.gov/Charities-&-Non-Profits/ tax deductible.
Exempt-Organizations-Select-Check that should raise a
• The caller uses a name that closely resembles a
better-known, reputable group.
• The caller thanks you for a donation you don't
remember making.
• The caller asks for cash donations or for you to wire
the money.
