There’s no surprise that charitable giving is down this year. A recession can make even the most altruistic person pull back.
Fifty-one percent of charitable organizations responding to a poll by the Association of Fundraising Professionals reported lower fundraising totals so far in 2009 compared with the same time period last year.
The next several weeks are crucial for the charities; most of them receive anywhere from one-third to one-half of their overall contributions in the last three months of the year.
Giving USA Foundation, a philanthropic research group, said total donations to charitable organizations came in at $307.65 billion in 2008, down 2 percent from 2007. The decline in 2008 was the first since 1987.
In this climate, the competition for charitable dollars intensifies. And it’s important for you, the donor, to make sure every penny of your charitable funds goes to legitimate groups.
So, I’m asking — pleading — that before you give money to a charity you are unfamiliar with, do some research. Give wisely by not only making sure the charity is legit but that it’s well run. One of the first things you should do when contacted for donations is to contact the office that regulates charitable organizations and charitable solicitations in your state to see whether the charity or fundraiser must be registered. For a list of state offices, visit the National Association of State Charity Officials at www.nasconet.org/agencies.
Do the research
There are two other places you should search: the Better Business Bureau and Charity Navigator.
The BBB Wise Giving Alliance at www.bbb.org/charity has valuable information about whether organizations have any complaints filed against them, and if they meet the 20 BBB Standards for Charity Accountability, which include charity governance, finances, fundraising, donor privacy and other accountability issues.
“When donating to a charity, give wisely by vetting the organization fully; this will ensure your dollar goes as far as it can to help those less fortunate,” said H. Art Taylor, president and chief executive of BBB Wise Giving Alliance.
The BBB says some of the questions you should ask include:
• Is this a charity I can trust? The names of some charities sound similar. Don’t be fooled by names that look the same.
• How will the charity use my donation? Be wary of statements such as “all proceeds will go to the charity.” This can mean the money left after expenses, such as the cost of promotional materials and fundraising efforts.
Follow the money
Professional for-profit fundraising companies may keep anywhere from 25 cents to 95 cents of every dollar they collect, according to Charity Navigator. The organization said efficient charities spend less than 25 percent on fundraising and administrative fees. You want to ensure that the charity is using most of the money it takes in to provide the services it supports.
• Is my donation tax deductible? Verify the tax-exempt status of the charity. You can check by going to the IRS Web site at www.irs.gov and searching for the online version of Publication 78. Be aware that some entities eligible to receive tax-deductible charitable contributions, such as churches and certain affiliated organizations, may not be listed in the publication. Not being on the list doesn’t mean you can’t deduct your charitable gift.
• Am I feeling pressured to donate? If someone is rushing you to give, that’s a red flag. The need isn’t going anywhere soon, so take the time to verify what the charity is pitching to you.
I found the Web site for Charity Navigator extremely helpful. The organization (which accepts donations) is best known for its ratings of the financial health of more than 5,400 of the nation’s best-known charities. There is no fee to access the ratings at www.charitynavigator.org. The Web site also offers tips to help you make informed choices.
If you can still afford to give, take the time to make sure your money goes to a good cause. None of us can afford to have charitable donations end up in the hands of con artists. That costs all of us.
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canyon_wren (anonymous) says…
I assume that it IS possible to give directly to a charity that is among those receiving monies through the United Fund. If enough people would give directly to those particular ones that they feel are especially worthy, it seems likely they would be in as good a situation as they ordinarily are--which is what really matters.