Holiday guide to charitable giving
How can you be sure that your charitable gift gets used effectively and ethically? Approach charitable giving like you would any financial decision: Take some time and do your research.
"The last quarter of the year is extremely important for charities. Our studies show that the typical charity receives from one-third to one-half, or more, of their total annual contributions during this time," said Paulette V. Maheara of the Association of Fundraising Professionals. "At the same time, people are especially mindful of their money in this tough economy, and donors need to feel confident about the charities they support."
Here are some tips for evaluating charities:
• Ask what portion of donations is used for administrative costs; it should be no more than 25 percent.
• Take your time making giving decisions and resist high-pressure appeals. The faster the sales pitch, the more you should just say no.
• Don't be fooled by charities with worthy-sounding names, or names that might sound similar to other organizations. Some questionable charities create names that are intended to sound like other well-known charities and mislead potential donors.
• Know the charity you are considering supporting. Ask the charity to send you a brochure or other published information. If the response is slow, reluctant or not forthcoming at all, consider a different charity.
• Before making a gift, offer to volunteer your time to learn more about the organization and how it is run. If the response is less than enthusiastic, or you don't like what you find, consider looking elsewhere to donate time and money.
• If you're contacted by a telemarketer, ask if he or she is working for a percentage of the funds raised, is paid a set salary or fee or is a volunteer. If the telemarketer is taking a percentage of funds raised, hang up the phone. Percentage-based compensation is considered unethical.
• Daily Herald news services contributed to this report.
How you can check out a charity
CharityNavigator.org: Nonprofit group that ranks charities and gives tips on giving
IRS.gov: Lists all IRS-approved charities
Give.org: Part of the Better Business Bureau, provides quarterly information on charities, plus a complaint area
GuideStar.org: Lists 1.5 million nonprofits in its database, all of which have met IRS criteria for exempt organizations