Access Profiles, Inc.

When you donate to your favorite charities, do you really know where your money goes?

 
While we have previously shared our thoughts on the importance of checking out the people and companies you are thinking of hiring (find our article here), why stop there!


The answer to all of these questions is an emphatic “No”! That is why you need to do some research before you give!

Despite the many good charities out there, there are also those that are complete frauds. These organizations try to trade on a person’s desire to help others only to line their own pockets.

• They won’t give you any details about their mission or where the money goes.
• They use a name that is close to, but not the same as, a well-known charity.
• They try to pressure you into donating immediately.
• They ask for cash or wired money donations.

While it is obvious you should avoid giving to these scam charities, even a legitimate charity and their claims should be questioned. There are definitely things you should know about their practices before you give.  

We all know it takes money to run any organization, even a charity. Employee salaries and other day to day costs are to be expected. But when paying high salaries seems to be more of a priority than helping those in need, then you should know that before you give.

According to organizations like Charity Watch and Charity Navigator, it is best to donate only to those organizations where at least 75% of their donations go directly to aid the cause ~ and the best charities exceed that!

That is why before you donate, take the time to visit a site like Charity Navigator first. Charity Navigator rates a wide variety of charities and lists information on the actual percentage of each donation that is spent on charitable works versus administrative and employee costs. 


Knowing for sure that a charity is legitimate and truly focused on using your donation to fund good programs makes sense.

Created by Kimberly Kline, API

Research the Charity Online:

• Visit Charity Navigator and the Better Business Bureau (BBB) to see if they are a trusted entity.
• Look for any complaints or scams associated with the charity.  
• Look for the Charity on Facebook, Twitter, LinkedIn, and any social sites. Read Comments and Reviews posted about the Charity.
• Verify the Charity is eligible to receive tax deductible donations via this IRS webpage. 

Get Detailed information about the Charity:

• Ask for their legal name and their mailing address
• Get specific contact information (phone number, email address, etc.).  

Contact the Charity Directly:

• Find out the charity’s donation procedures.
• Ask any questions you have about what the Charity does and how they do it.

Do a Civil and/or Criminal Court Check on the Charity / Key Executives:

• Discover if the charity or any of its top executives have been involved in a lawsuit, whether as the plaintiff or defendant.
• Focus on cases of fraud, embezzlement, or other crimes should be a red flag.  
• Be sure to check any relevant county, state, or federal courts (limiting it to the federal district court and lower level courts where they are incorporated saves time).

We all need to continue to be people that care about others and the world around us. It makes us human to be invested in their welfare, comfort, and way of living ~ not just in our own country but around the world.

It is also important to remember that there are many worthy charities out there. They are the ones that focus their efforts on truly helping their cause and need your donations to continue.

Authored by