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Finding a Legit Charity

After Hurricane Katrina hit the US Gulf coast, we all got bombarded with the horrific images of those who were unfortunate enough to be in Katrina’s wake. Our natural reaction is to want to help in any way we can. For those of us who can’t be in the area helping out the local relief organizations, we look for other ways to contribute.

One of the most common ways to contribute is by donating money. Of course, when there’s money to be had, scam artists are there to collect.

There are now some 2,300 Web sites advertising Hurricane Katrina relief services, and most of them are presumed to be bogus, the FBI said Friday.

Fortunately for us, there are plenty of resources available to research charities.

  • American Institute of Philanthropy - The AIP has identified and rated organizations giving relief to Katrina victims. Their full charity rating guide can be found here.
  • Charity Navigator - works to advance a more efficient and responsive philanthropic marketplace by evaluating the financial health of America’s largest charities. Four star rated charities in the hurricane relief effort.
  • Give.org - The Better Business Bureau’s Wise Giving Alliance collects and distributes information on hundreds of nonprofit organizations that solicit nationally or have national or international program services. It routinely asks such organizations for information about their programs, governance, fund raising practices, and finances when the charities have been the subject of inquiries. Here is their list of Hurricane Katrina Relief Organizations.
  • IRS.gov - Search for Charities, a list of organizations eligible to receive tax-deductible charitable contributions.
  • Network for Good - a centralized source for making donations. The link for hurricane relief donations.

    • Donate wisely. Select your charity based on research and proactively seek out to make your donation. If, however, you are solicited by a charity to make a donation, the Federal Trade Commission has a Charity Checklist to help you avoid being scammed:

  • Be wary of appeals that tug at your heart strings, especially pleas involving patriotism and current events.
  • Ask for the name of the charity if the telemarketer does not provide it promptly.
  • Ask what percentage of the donation is used to support the causes described in the solicitation, and what percentage is used for administrative costs.
  • Call the charity to find out if it’s aware of the solicitation and has authorized the use of its name.
  • If the telemarketer claims that the charity will support local organizations, call the local groups to verify.
  • Discuss the donation with a trusted family member or friend before committing the funds.
  • Don’t provide any credit card or bank account information until you have reviewed all information from the charity and made the decision to donate.
  • Ask for a receipt showing the amount of the contribution and stating that it is tax deductible.
  • Understand that contributions made to a “tax exempt” organization are not necessarily tax deductible.
  • Avoid cash gifts. They can be lost or stolen. For security and tax record purposes, it’s best to pay by check - made payable to the beneficiary, not the solicitor.

    • If you have any doubts about the integrity of the charity, step back and don’t be pressured to open your wallet before you do your research. Make sure your money counts!

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    This entry was posted on Tuesday, September 13th, 2005 at 1:00 am by Liz and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

    One Response to “Finding a Legit Charity”

    1. Elana Says:
      September 19th, 2005 at 10:27 am

      I do love the Charity Navigator and it’s been very useful for me finding alternatives to the American Red Cross. Using the list you linked above, I’ve decided to concentrate my donations for Katrina to AmeriCares, with a smaller donation to PetSmart Charities to help with the less documented plight of the animals and pets left behind after the hurricane.

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