Action Line: Check out charities before donating by phone
| Friday, Nov 06 2009 11:28 AM
Last Updated Friday, Nov 06 2009 11:31 AM
Editor's note: Action Line is a weekly column from the Better Business Bureau answering consumers' questions and concerns about money and business issues.
Dear Action Line:
I can always tell when the holidays are coming because I start getting phone calls from people saying they are collecting for charities. Last night I received a call from someone supposedly calling for a well-known national charity and when I asked him some questions about the organization, he couldn't answer them. After I asked some more questions, he admitted that he works for a fundraising company that raises money on behalf of the charity. How do I know if they are really going to give my money to the charity?
Dear Reader:
Commercial fundraisers often contract with charities for the purpose of raising funds. Such services save the charity the expense incurred by running a fundraising campaign. Fundraising costs are deducted from each donation collected by the promoter/fundraiser or are charged a flat rate and the charity gets the balance. Generally, the charity receives only 8 to 12 percent of a donation received. When contributing to a charity through a promoter/fundraiser, a donor must take this into consideration.
According to the Council of BBB's Charitable Solicitation Standards, at least 65 percent of the amount received by the charity should be applied to the charitable programs described. And no more than 35 percent can be used for fundraising purposes. Therefore, most solicitations made by a promoter/fundraiser do not meet BBB standards.
The California Attorney General oversees the activities of commercial fundraisers for charitable purposes and the groups must file financial reports with the Attorney General's Registry of Charitable Trusts.
Here are some general rules to follow when solicited by phone for a charity:
* Get as many facts as you can: the charity's exact name, address, phone number, and tax exempt status, and check the solicitor's identification.
* Ask to be mailed information on the charity's purpose, goals and finances BEFORE making any donation. Make checks payable to the charity, not to the person asking for the donation.
* Don't be fooled by impressive names that closely resemble the name of a familiar organization.
* Ask how much money will actually reach the charity, and whether the solicitor is being paid to make the call.
* Don't give in to pressure to donate on the spot. Legitimate charities will not rush or pressure you into giving money immediately.
* You are under no obligation to pay for, or return, unordered merchandise, such as address labels, greeting cards or pens received with an appeal letter.
* Hang up on aggressive and harassing solicitors.
You can also check out a charity at www.give.org; www.charitywatch.org; or www.caag.state.ca.us/charities.
Vickie Sanders is assistant director of business services for the Better Business Bureau serving Central California. Send your consumer concerns, questions and problems to Action Line at the Better Business Bureau, 1601 H St., Suite 101, Bakersfield, CA 93301 or vickie@bbbcencal.org.
