Unfortunately, fraud can find its way into almost any financial venture, and charities are no exception. Therefore, individuals considering charitable donations should research carefully the organization to which they wish to donate. One important act is to ask for the Employer Identification Number (EIN) and then verify it on the IRS website. Doing so will allow the potential donor to confirm if the organization is 501(c)(3)registered as a nonprofit member. There are also other types of tax-exempt entities that can be researched on this IRS site. Another method of exploring a charity is to gather information about the organization that a person is considering and tap into several resources that can check on this organization’s reputation.
Consulting Assessment Organizations for Charities
One crucial action before giving money to a charity is to ascertain how much of the donations go directly to the program a person wishes to support. After all, people expect that their contributions will make a difference. Fortunately, there are assessment organizations such as Charity Navigator, a free 501 organization that measures and evaluates more than 160,000 organizations that are American-based charities. Checking the website of the organization is another way. To do this, a person should request the organization’s Employer Identification Number (EIN) and verify this number on the website.
Fortunately, there are other organizations that are available to assist people in their charity research, such as GuideStar, Charity Watch and BBB Wise Giving Alliance. This last site also provides a list of the worthy charities that are most popular.
Other Actions to Take Before Donating to Charities
In their efforts to find worthy charities, people can consult a state charity regulator. (A regulator can be found on nasconet.org.) Also, it is a good idea for people wishing to provide charitable donations to read an article entitled “Donating Through an Online Giving Portal.” Accessible at FTC.gov/Charity, this article explains how online giving portals function.
Actions to Take if a Charity Phones
Legitimate charities are glad to accept donations at any time, so there is never any need to donate over the telephone. If a fundraiser calls, the call recipient should write down the exact name, mailing address and web address of the charity and verify the information later. If this information is legitimate, donations can be mailed.