Many of us are now starting to think about and prepare for the holidays, and many families are also becoming more concerned with giving to help others in need. When deciding on a charity to give or donate money to, it is important to be aware of a charity’s legitimacy and make sure it is not a scam, and that the money you give will go toward the intended purpose. Here are a few simple steps to check if the charity you donate to is legitimate:
- Check the charity on the Better Business Bureau’s National Charity Report Index. This index lists charities that have been checked against the standards for charitable accountability. This index features national charities only.
- Purchase a copy of the Charity Rating Guide and Watchdog Report. This report put out by the American Institute of Philanthropy informs donors how over 500 national charities spend donations and keeps them aware of other related charitable news.
- Visit GuideStar online and read the reviews of nonprofit organizations. It includes data from over 700,000 organizations and even has printable versions of Form 990 for some charities.
- Question the charity directly about where your donations go and how the money will be used. If the charity is unwilling to share basic information about how it handles donations, it is better to just put your money elsewhere.
- If you ever are the victim of a charity scam or fraudulent organization, be sure to notify the authorities. Take the time to read Scambusters “Four Charity Scams to Avoid” to learn what to look out for this holiday season.
