FTC Charity Checklist
Thinking about donating to a charity? The Federal Trade Commission
advises that you consider the following precautions to ensure that
your donation dollars benefit the people and organizations you want to
help. They're good practices whether you're contacted by an
organization's employees, volunteers or professional fund-raisers,
soliciting donations by phone, mail or in person.
- Be wary of appeals that tug at your
heart strings, especially pleas involving patriotism and current
events.
- Ask for the name of the charity if
the telemarketer does not provide it promptly.
- Ask what percentage of the donation
is used to support the causes described in the
solicitation, and what percentage is used for administrative costs.
- Call the charity to find out if it's
aware of the solicitation and has authorized the
use of its name.
- If the telemarketer claims that the
charity will support local organizations, call the local groups to
verify.
- Discuss the donation with a trusted
family member or friend before committing the funds.
- Don't provide any credit card or
bank account information until you have reviewed all
information from the charity and made the decision to donate.
- Ask for a receipt showing the amount
of the contribution and stating that it is tax
deductible.
- Understand that contributions made
to a "tax exempt" organization are not necessarily tax deductible.
- Avoid cash gifts. They can be lost
or stolen. For security and tax record purposes, it's best to pay by
check - made payable to the beneficiary, not the solicitor.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop
and avoid them. To file a complaint or to get free information on wise
giving, visit
www.ftc.gov/charityfraud or call toll-free, 1-877-FTC-HELP
(1-877-382-4357); TTY: 1-866-653-4261.
May 2003 |
