Charitable Giving: Tips for Making Donations

Americans are very giving people. In fact, individuals in the United States contribute more than 80% of the funds raised by charities. With the occurrence of recent tragedies, we want to give all the more. To help donors make wise decisions about contributing, the Council of Better Business Bureaus (CBBB) has developed the following tips on charitable giving:

• Do not give cash; always make contributions by check which should be payable to the charity, not to the individual collecting the donation.
• Keep records of your donations, such as receipts, canceled checks, and bank statements, in order for you to document your charitable giving at tax time.
• Keep records of your expenses as a volunteer. Although the value of your time as a volunteer is not deductible, out-of-pocket expenses (including transportation costs) directly related to your volunteer service to a charity are deductible.
• Be wary of names that look impressive or that closely resemble the name of a well-known organization.
• Check out the organization with the local charity registration office (usually a division of the state attorney general's office) and with your Better Business Bureau.

Mail Appeals: Letters that Fill your Mailbox

• Mail appeals should clearly identify the charity. They should describe the programs in clear and specific language. Beware of appeals which play upon your emotions but give you little information of the charity or its process to aid the problem it describes so well.
• Appeals should not be disguised as bills or invoices. It is illegal to mail a bill, invoice, or statement of account due that is actually an appeal for funds, unless it has a clear and noticeable disclaimer informing you that the mailing is an appeal and that you are under no obligation to pay unless you accept the offer.
• It is illegal to demand payment for unordered merchandise. If items such as key rings or greeting cards are enclosed with an appeal letter and you did not order them, you are under no obligation to pay for or return the merchandise. It has been found that unordered merchandise can mean high fund raising costs and money is not going to the programs it is making the appeal for.
• Appeals with sweepstakes promotions should disclose that you do not have to contribute to be eligible for the prizes offered. Requiring a contribution would make the sweepstakes a lottery through the mail, and it is against the law to operate a lottery through the mail.

Before giving to a charitable organization, always take time to ask them who they are, what they are doing, and how they spend their funding. A legitimate organization will be happy to answer your questions.