Ensuring your contributions make a real difference
Roseville, Calif.- As the holiday season approaches, many Americans feel inspired to give back by donating to charities. However, ensuring that your contributions make a real difference is important.
To protect yourself from scams and ensure your donations are used wisely. The Federal Trade Commission (FTC) suggests the following.
Research charities before donating
Before you choose a charity, do some research online. Consider what causes are important to you, such as "hurricane relief" or "supporting homeless children." You can also search for terms like "best charity" or "highly rated charity" to find reputable organizations. If you have a specific charity in mind, look it up along with keywords such as "complaint," "review," "rating," or "scam." This can help you discover any negative feedback about the charity and give you a clearer picture of its reputation.
Be careful how you pay
When it comes to payment, be cautious. Avoid donating in cash, via gift card, or by wiring money to anyone who requests it. These are common tactics used by scammers. Instead, choose safer payment methods like credit cards or checks. It's also a good idea to record all your donations. Check your bank statements regularly to ensure you are only charged what you agreed to and are not signed up for recurring contributions without your consent.
Recognize common scams
Scammers often use tricks to pressure people into donating. Don't let anyone rush you into making a decision. If someone thanks you for a donation you never made, be wary. This is a common scam tactic. Be aware that some scammers can change caller ID information to make calls appear local. Additionally, they may mimic the names of real charities, making it crucial to verify the charity before giving. Watch out for vague claims about how your donation will be used. Legitimate charities should provide clear information about their programs and how your money will help. Be cautious of organizations that claim your donation is tax-deductible when it's not. Also, remember that it's illegal for anyone to guarantee sweepstakes winnings in exchange for a donation.
If you have doubts, choose another charity
If you feel something doesn't feel right or you're unsure about a charity's intentions, consider donating to a different organization. Many reputable charities will use your contributions responsibly.
Helpful resources for researching charities
Several organizations offer reports and ratings on charities to assist with your research. These organizations offer reports and ratings about how charitable organizations spend donations and how they conduct business:
- BBB Wise Giving Alliance, to find trusted charities, donor tips plus
- Charity Navigator, to find donator basics plus
- CharityWatch, to top charities, donating tips plus
- The IRS's Tax Exempt Organization Search tells you if your donation would be tax deductible nasconet.org tells you information about state charity regulations
If you encounter a scam, report it at reportfraud.ftc.gov. By following these steps, you can donate safely and ensure that your generosity truly makes a positive impact this holiday season.