The holidays often melt the iciest of hearts. Admit it, when a shivering dog is plastered on the screen as Sarah McLachlan sings, it gives you the feels and makes you want to donate to the cause.
The No. 1 reason people give to charities is that they align with the mission.
“It could be nonprofits such as rescuing animals or putting art in the park, it resonates with them and means something,” said Lisa Dietlin, president of The Institute of Transformational Philanthropy. The second reason is that something occurs within the person’s circle of influence.
“You might not care about Alzheimer’s disease until your mom develops it,” Dietlin said. When it hits home is when people really start to care.
What’s the 411?
The Better Business Bureau (BBB) provides tools and education to help consumers make informed choices. Its website has a database with charities’ pertinent information, such as their background, their financial information and what they do as a charity.
“A red flag is a charity that refuses to disclose information to third-party sites,” said Steve Bernas, president of the Better Business Bureau of Chicago and Northern Illinois. Charities have every right to not submit info, but the BBB informs the public if they don’t.
The fraud game is in the name
Some fraudulent charities have similar-sounding names to the legitimate ones.
“You might donate to the American Cancer Society and someone solicits from the American Society of Cancer,” Bernas said.
The name is similar but has a different word order.
Disasters and other mayhem
Bernas and Dietlin agree that many scams come out of the woodwork during a national disaster.
“During Hurricane Katrina, people gave online,” Dietlin said. “The FBI identified 4,000 fraudulent websites affiliated with Katrina within four years.”
Opportunists or criminals look at disasters as a means to an end.
“We live in a post-9/11 society, it doesn’t matter how many cars we have, we want to help someone have better life,” Dietlin said.
Do your homework
Bernas believes consumers need to do their research. While the BBB has a wealth of information and tools, not all charities reply to them or give information. “Consumers need to ask questions themselves,” he said. A consumer can’t make a decision without having enough background. People get scammed when they don’t have the proper information.
With social media comes the rash of GoFundMe campaigns. Ask who is behind the fundraiser; will they be around in six months? Bernas said to observe if they disappear if they don’t get some funding.
“There are tons of great charities out there, give but give wisely,” he said.
The hard and fast sell
During the holidays, people are caught up in the hustle and bustle of the season. Some may want to donate within the last two months of the year to get a tax break. Bernas said that is when scams heat up.
A disheveled kid shows up on a doorstep holding a can for money, or a person is sobbing on the phone. When the need is immediate, be cautious.
“People are in desperate situations, and con artists pull on the heartstrings,” Bernas said.
A normal charity and business will want to do business with a donor today, next week and next year.
Bernas said scammers don’t want someone to check them out, which is why the urgency is used as a tactic.
Request information
Always ask for literature. “If a kid shows up at my door, I never give money. I ask for information and a pledge card,” Dietlin said.
She also tells solicitors that she will look the material over and decide if she wants to commit.
Charities need to be registered in the state they are operating in. Consumers can contact their attorney general’s office to find out a registration status.
Bernas urges donors to find out where the money goes and what is actually going to the cause. How much does the CEO get, or what amount goes to administration? Charities have to fill out a 990 IRS form. The information that is submitted by a charity for tax purposes is available to the public.
How are you treated?
When people give, they want an acknowledgment. Dietlin encourages everyone to start small to see if they get a response. “Send $25 to see if you get a thank you. It shows how they are dealing with donors,” she said. Are they treating the $25 donor the same as the $25,000 donor?
Here are three free, valid websites for checking out charities that Dietlin recommends to her clients.
Charity Navigator: The website provides star ratings for charities. It also provides tips for donors and Top 10 lists of different kinds of charities.
GuideStar provides consumers the IRS form 990 of nonprofit organizations. Information on a nonprofit’s mission, legitimacy, impact, reputation, finances and programs are available.
The local Better Business Bureau: The BBB Wise Giving Alliance Standards for Charity Accountability provides a national-level seal of approval. While businesses get graded, charities do not. There are twenty standards that a charity must meet. If some standards are not met, that is stated on the charity’s listing.
Karen Pilarski is a RedEye special contributor. @KarenPilarski
