Your charitable spirit is noble. You want to help. But with so many requests--from big, established organizations to neighborhood calls to action to Kickstarter campaigns--it's hard to know whom you can trust.
It's especially challenging when it comes to the smaller efforts, like a campaign to provide funds for an individual's medical expenses.
"There is no way to vet these personal appeals if they're not through a charity," says Sandra Miniuttie, vice president of Charity Navigator. "These new crowdfunding sites are very risky ways to give, as there are no assurances as to how your money will be spent."
While it would be wonderful if every cause was on the up-and-up, that's not always the case. Two recent cases:
- Philadelphia-based broadcaster Don Tollefson turned himself in last week on charges related to soliciting more than $100,000 from over 100 people who bought travel packages to sporting events, that Tollefson claimed were to benefit four charities. The travel packages never materialized and the charities weren't registered in their states.
- Michigan woman Sarah Ylen asked donors and insurance companies to help treat her non-existent cancer for years. Ylen was recently sentenced to a year in jail for fraud that included forged medical records.
So how can you determine whether to give or not? Follow these steps:
1. Double-check the organization on a watchdog site like Charity Navigator, givewell.org, or guidestar.org.
2. Do your own evaluation. Find out if the cause is a registered 501(c)(3) public charity. That's especially important if you want your donation to be tax-deductible, says Miniutti.
3. Read its Form 990. Since most charities bring in $200,000 or more a year, they are required to complete the full form. It details spending on programs, fundraising, and administration. Look for charities that spend at least 75 percent on operations and services and no more than 25 percent for admin and fundraising.
4. If possible, visit the charity's headquarters to see it in action. Talk to the people physically running the place and make your own judgment.
5. Bonus: Check with the IRS. Last week week, the organization put out its annua l "Dirty Dozen" list, revealing 12 common tax scams people fall for, like false promises of "free money" from inflated refunds, email phishing, and more. Check out the full list here.
Powered by WPeMatico
No comments:
Post a Comment