Checklist of precautions when giving to a charity

donation-517132_960_720.pngMany charities use your donations wisely. Unfortunately, others spend too much of your contribution on fundraising and administrative expenses. Some even misrepresent themselves and solicit your money for phony causes. In today’s world, investigating a charity before you make a donation is wise.

Here’s a checklist of precautions.

  • Request written documentation about the charity’s mission and how your contribution will be spent. Ask for proof that your donation is tax deductible. If a charity is reluctant to provide information, think twice about making a gift.
  • When you receive a phone solicitation, the caller must provide his or her name, the name of the person or entity on whose behalf the call is being made, and a telephone number or address at which that person or entity can be contacted. If a caller refuses to give you this information, hang up. Report the call to local authorities to help protect others.
  • Be wary about giving your credit card number over the phone. Instead, consider mailing your contribution once you’ve verified that the charity is legitimate and that it represents a cause you’d like to support.
  • Just because an organization gives you a receipt for your records doesn’t mean the organization is tax-exempt or that your contribution is tax-deductible. To find out if an organization is exempt from federal income tax and how much of your contributions to it are tax deductible, visit the IRS website at https://apps.irs.gov/app/eos.

Asking the right questions and obtaining information from and about a charity is the only way you can be sure your contribution will be used to benefit the causes and people you want to support. If we can help you sort the legitimate from the fake, give us a call.

 

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