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Great Tips on How to Handle Charity Solicitation Calls

Almost every American family will donate to one charity or another this year. Whether it is a cause they believe in or simply a tax deduction, an average of over $1600 per household is sent out each year.

Sometimes, people base their donation giving based on a tear-jerking commercial or telephone call. However, there are some things you need to know to make sure that your charity of choice is legitimate and not a fraudulent one. Here are some tips.

The IRS provides a search of charities that it has approved. However, if you want to make sure that your money does the most good, you may need to do some research on your own to find out how effective it is and how much of your donation actually goes to the cause.

You can also use the IRS to verify the charity’s tax-exempt status. Call the IRS directly, or ask to see the IRS recognition letter.

There are several websites online that will rank charities for you and give you information on their spending. Watch that the charity not only meets the IRS criteria, but also spends a minimum of 65% on its cause. There is even a division of the Better Business Bureau devoted to charities, and you can complain there if you feel like you have been misled.

If you feel that you have been involved with charity fraud, your state attorney general’s office would be the one to investigate it. You can call them to report a complaint, or to see if your selected charity has any complaints against it. The Federal Trade Commission also handles charity fraud complaints.

You will want to keep in mind that not all legitimate charities will be registered with the IRS. Small, local causes will not, so you will want to make sure that you do your research locally. Other causes have a shorter duration, so do not get registered – like car washes for the high school band trip or the fundraiser for the policeman’s widow and family. For these sorts of things, find out if the group has the backing of a community organization or school of some type.

There are some things to particularly watch out for when taking charity phone calls. Since you are not actually seeing the person you are talking to, there is more potential for them to be running a scam.

First, ask them to send you printed materials before you donate. A scam will usually not have materials to provide.

If it was someone calling you, never give you bank or credit card information. Ask to call the charity back to donate over the phone, or find out how you can mail a contribution in.

Listen or read the charities name carefully. Many will try to use names that sound like well-known organizations in an effort to get you to donate.

Contact your state attorney general or do some research on your own to find out whether or not the charity is legitimate. This can also give you a chance to see how much of your money is actually going to the charity.

Another thing to be cautious of is when charities start to call after a big disaster. When something like a hurricane, earthquake, or other natural disaster strikes, many organizations will do fundraisers to raise support. However, this is prime time for scammers to try and take advantage of people with big hearts and open pocketbooks.

There is no reason why you cannot continue to give to your favorite charities, whether it be over the phone or otherwise. You just want to make sure you do you homework to make sure that it is a legitimate charity, you are protected, and your money is actually going to the cause you want to support.