What to ask before making a donation

Even in a bad economy, people still reach deep into their pockets to help out those who are less fortunate, especially as the holidays approach. It’s important to know that the money you are giving to a charity is truly being put to good use. The New Jersey Society of Certified Public Accountants offers these questions to ask to ensure avoiding charity scams: Can you give me details in writing? A reputable organization should be happy to supply written information that covers its address and contact details, what kinds of works it is involved in and whether your donation will be tax deductible. You can also learn more about individual organizations through the Better Business Bureau at www.give.org. If the group refuses to provide any information — or gives hazy answers about its mission or its tax-exempt status — don’t give any money to them. Should I respond to this e-mail? Many con artists use e-mail to solicit donations for phony charities. Do some research before sending money in response to an online appeal, and never reveal any personal or account information in an e-mail. How much of my money really goes to charity? Ask if the person or group soliciting the donation is a paid fundraiser, and how much of the donation will actually go to those in need, rather than paying for salaries or other administrative costs. Go to www.charitynavigator.org to see ratings of various organizations and a full report, including details on how their money is spent. How long have you been in business? Every day the news brings compelling pictures of natural and manmade disasters and other problems that leave people in need of help. Charitable groups often seem to spring up out of nowhere to help, but even if their intentions are good, donating to a brand new group may not be the best idea. That’s because the group may not have the experience necessary to get the job done. Do I have to donate to win a prize? Some groups tell you that your donation qualifies you to enter a contest for valuable prizes. In fact, it is illegal to require anyone to make a donation in order to win a prize. Donations to organizations that use this come-on are probably not really going to those in need. Find out also whether your donation is tax deductible, as it should be when made to a legitimate charitable organization. Can you repeat the name of your group? Many phony operations choose names that sound just like legitimate, well-known charitable organizations to con people into trusting them. If you’re uncertain about whom you’re dealing with, contact the better-known group to see if the solicitation is really from them. For more information on various personal financial matters, visit www.MoneyMattersNJ.com.