Avoiding Charity Scams

There are so many problems in the world that you can be left feeling utterly overwhelmed and helpless. But wait! There just happens to be several organizations that are dedicated to changing these problems, run mostly by volunteers. These organizations are always strapped for cash. That's where you can come in.

But how do you tell which charities are right for you? And how do you tell which charities are legitimate and which get anything done?

What's Your Number?

Non-profit charities are subject to many regulations; one of which is that they have to reveal their finances to the general public. If your charity does not open its books to the public, move on. They also should be able to provide a charity or non-profit license registration number. This number can be checked with the IRS or your state's Attorney General.

Sadly, there are a lot of scams and fake charities that spring up during the course of any and all natural and man-made disasters. The safest way to avoid them is to NOT have anything to do with a charity that is less than two years old. Never respond to emailed pleas from a charity group that you did not contact first; this is usually a scam. Sometimes these pleas come up on Craigslist or forum posts.

As a general rule, never give to anyone who calls you over the phone, especially is you never gave money to that charity before. There are legitimate charities like the ASPCA who do phone their members for solicitation, but they do not phone non-members.

Sniffing Around The Charity Tree

There are also two watchdog groups on the Internet that rate and grade charities' performances and how much money goes to the causes for which it is trumping for. One website is called Charity Navigator (which is a charity, too, technically). It is a very easy to navigate, well organized website with very detailed reports on the over 5,000 American-based charities it grades.

Another charity watchdog website is called, appropriately enough, Charity Ratings Watchdog Service, put together by the American Institute of Philanthropy. This is also a nonprofit charity not tied into any other charity, but it asks for donations in a very low-key way. It is not as extensive as Charity Navigator, nor does it cover as many charities. But it is a good resource in helping you decide if a charity is worth your money.

Americans can turn to the Better Business Bureau to check on how individual charties spend money. You need the address of the charity's home office in order to use the BBB's search feature. There are also forms to file complaints against charities. Canadians can check out the Canadian Donor's Guide . Those in the UK can check out the Fundraising Standards Board.

Conclusion

You can't give to every cause under the sun (or over the sun). You don't want to become a charity case yourself. Pick the cause that means the most to you and stick with giving to charities in that realm. Or, pick a charity that has personally helped you in the past. Never give to any phone, snail mail or email plea unless you have contacted that chairty first for information.