Tips for Giving to A Legitimate Charity

As we wrap up the 2024 tax season, did you wonder about the best ways to give to a charity? How do you know if any given charity is legitimate? While donating to charity can be gratifying, it should be considered thoughtfully. Before donating to specific causes or charities, do your research to avoid donating to a scam:

1. Use BBB Wise Giving Alliance or CharityWatch to help research charities.

2. Review the charity’s website for details about its mission and programs.

a. How will the charity use your donation?

b. Are details provided about the programs you want to support?

c. How much of your donation will directly support the programs you care about?

3. Is the charity or fundraiser registered by your state’s charity regulator?

4. Will your donation be tax deductible? If this is important, confirm the organization is registered with the IRS as a tax-exempt organization.

5. If someone calls asking you to donate, ask the following:

a. What is the charity’s exact name, mailing address and web address?

b. How much of your donation will go to the program you want to help?

c. Is the donation for a charity or for a Political Action Committee (PAC)?

d. Do not let the caller rush you into donating.

Fundraisers may not use a robocall or prerecorded message to reach you unless you are a member of the charity or a prior donor. Even then they must offer you a way to opt out of future calls. The fundraiser must be truthful. The caller ID on your phone has to show the name of the charity or fundraiser as well as a number that you can call to ask to be placed on the charity’s do not call list. If any of these rules are broken, the fundraiser may not be legitimate.

It is best to donate using a credit card or check. When donating online, check that the webpage where you enter your payment information has “https” in the web address – this encrypts your information. Never pay with wire transfers, gift cards or cryptocurrency. If the caller says you have already pledged, stop and double check. Beware of sentimental claims with limited details. A guarantee that you will win a prize or contest is a scam. The safest way to give on social media or through crowdfunding is to donate only to people you know - but never assume a request is legitimate just because a friend posted it. Check the crowdfunding link to see where your donation goes. You can report charity scams to the FTC @ ReportFraud.ftc.gov or your state charity regulator (through nasconet.org).

After donating, review your bank account and credit card statements to ensure you have only been charged the amount you agreed to donate. Check to make sure you are not signed up to make recurring donations (unless you agreed to more than one donation), and keep a record of all donations.

If you have questions about this topic, reach out to a financial professional. If you are not currently working with FPS, we would be happy to talk with you. Questions? We are here to help.

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Best regards,

Janet Rhodes Friedman, CFP®, CDFA®, MBA

Janet@PlanWithFPS.com

617-630-4978

Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.