Charities – Give, but give wisely

Each year, Americans give billions of dollars to charities. That generosity supports many amazing organizations that put those billions to work for health care, education, environmental protection, the arts and numerous other causes. Unfortunately, it also opens a door for scammers, who capitalize on donors’ goodwill to line their pockets. Before we open our hearts and our wallets, it’s important to make sure our donations have the greatest impact on the charities we choose.

Charitable fundraisers may come door-to-door, stand on street corners or in shopping malls, advertise in newspapers or on the radio, send letters or emails, or call on the phone. You may fell pressured to give money on the spot, before you have a chance to think. But while it’s good to give, it’s just as important to give wisely.

Many Americans care deeply about others and want to do something good for those who are less fortunate, and there are many worthwhile charities that will put your money to good use. But with so many choices, it’s difficult to determine where and how to give. So what can you do to make sure your charitable contributions are going to a good cause?

First, you should find out if the charity is registered with the state by calling the Secretary of State’s Charities Hotline at 1-800-332-4483, or by searching online at www.secstate.wa.gov/charities.

Next, find out how much of the money you give goes to the charitable purpose and how much goes to the cost of fundraising. Commercial fundraisers, which can range from telemarketers to mail distributors, collect money on behalf of a variety of groups, like shelters and aid programs. According to reports from the Secretary of State’s Office, the cut these fundraisers keep and the amount they return to charity can vary widely, from 100 percent to nothing at all.

Giving till it hurts
Unfortunately, con artists can try to take advantage of your generosity during the charitable giving season. Most charities are accountable to their donors, but some Grinches are more interested in helping themselves to your cash than helping others.

Before opening your wallet, here are some other ways to be sure you’re not handing your money over to a crook.

• Be wary of appeals that tug at your heartstrings, especially pleas involving patriotism and current events.

• Be alert for charities with names that closely resemble respected charities.

• Ask for written information and materials to be mailed to you before you make a giving decision and take your time to make a decision about donating.

• Discuss the donation with a trusted family member or friend before committing the funds.

• Avoid cash gifts. They can be lost or stolen. For security and tax record purposes, it is best to pay by check, made payable to the charity, not the fundraiser.

• Ask for a receipt showing the amount of the contribution and stating that it is tax deductible.

Many people develop their own “charity giving plan” - a set of charities they select after investigating them thoroughly. They decide how much and to whom they will give each year as part of the plan and then the rest of the year when other charities call or write, they say “no thank you.” This strategy allows the givers to know where their money is going and to avoid being drawn in by a phony emotional appeal.

For more information about wise giving, check out the following resources:

Washington Secretary of State
www.secstate.wa.gov/charities

Washington State Office of the Attorney General
https://www.atg.wa.gov/charities

Federal Trade Commission
www.ftc.gov/charityfraud/

Better Business Bureau
www.give.org