Tip of the Week: Research charity before you give

The Better Business Bureau says a large number of charities it contacted last year failed to disclose information necessary for their evaluation.

"Charities have an obligation to be open and transparent so that the public can make confident decisions when donating money," said Erica Phelps, charity analyst for the BBB Charity Reporting Services. "While failure to disclose doesn't necessarily mean the charity is unethical or hiding something, it should raise a red flag for potential donors if a charity is holding back information and not being up front."

The bureau evaluates the performance of local charities on 20 standards including fundraising, finances, governance and oversight, and the organization's efforts to measure its effectiveness.

"About 70 percent of Americans feel it is difficult to tell whether a charity soliciting their contribution is legitimate, operates with integrity, and actually does the kind of charity work it says it does," Phelps said in a statement. "Determining whether or not a charity deserves donor trust requires more than just looking at their tax filings and amounts spent on overhead; that's why the BBB digs deeper."

BBB conducts reviews of charities in response to donor demand, and if a report doesn't exist for a charity that a consumer inquires about, the bureau contacts the charity and asks that it completes a questionnaire as well as provides copies of basic documents.

Some giving advice from the BBB:

- When in doubt, check it out. When an unfamiliar organization asks for a donation, don't give it without gathering details about the charity, the nature of its programs and its use of funds. Contact the BBB at www.bbb.org or (330) 454-9401.

- Don't be fooled by low overhead claims. Many charities spend acceptable amounts on fundraising and administration, yet still fail to meet one or more of the standards for accountability. When giving to national charities, ask if they are accredited by the BBB. If not, ask why.

- Think before you give. If you are solicited at the mall or on the street, take a minute or two. Ask for the charity's name and address. Get full identification from the solicitor and review it. Ask to see written information on the charity's programs and finances.

- Watch out for cases of mistaken identity. With more than a million charities in the U.S., many names sound alike. Be careful that the one soliciting you is the one you have in mind.

- Know how much a purchase helps the charity. If something is being sold to benefit a charity, be wary of vague statements such as "all proceeds go to charity" or "your purchase will benefit a charity." Look for a disclosure that indicates the actual or estimated amount of the purchase price that the charity will receive to fund its programs.

- Watch out for charity fraud. Legitimate charities do not demand donations; they willingly provide written information about their programs, finances or how donations are used; and they never insist you provide your credit-card number, bank account number or any other personal information.

For full evaluations, the BBB Wise Giving Reports, on nationally soliciting charities, visit: www.bbb.org/charity

The Repository