You may be tempted to give in to charitable appeals between now and Dec. 31, the deadline to claim them on your 2014 taxes. But be sure those donations do some real good for real people rather than enriching scam artists or CEOs. Clark Howard offers some tips:
- Don’t give cash. Legitimate charities will take a check.
- Don’t give out your credit card, bank account or personal information to telemarketers. If you want to donate, initiate the call yourself.
- Don’t fall for Internet appeals if the cause does not look legitimate and doesn’t check out. Make sure to do your research!
- Expect specific information. Ask what kind of relief this organization is going to provide. Don’t accept vague explanations.
- Check out the charity with national, state, and local authorities. Established charities register with the Internal Revenue Service. You can search for specific non-profit organizations on the IRS website: irs.gov.
- Beware of newly formed organizations. If the charity is new, you may have to rely on your relationship with the company or sponsor of the organization to determine whether you trust the group.
- Report abuses to the nearest Better Business Bureau and the State Attorney General’s office. Both are listed in local telephone directories. You can also report abuses to the National Fraud Information Center at (800) 876-7060. NFIC also has a web-based complaint form at www.fraud.org.
And here’s one of my own: Check to see how much of your donation will go to charitable work as compared to administrative costs (including CEOs) and fundraising costs. Look them up at www.CharityNavigator.org or the Better Business Bureau site www.BBB.give.org.
For more tips on donating, check out Clark’s Donation Guide.