TITLE: What to Do When Approached for
Charitable Donations
SOURCE: MyAccountingPortal.Com
DATE POSTED: 12/11/01
What to do When Approached
for Charitable Donations
Charitable
donations are a wonderful way to make a positive impact on society, and are
often tax-deductible. Here are some guidelines to keep in mind when
charities come to you.
When
you are approached by a door-to-door solicitor for a contribution of either
your time or your money, ask questions -- and don't hand over any cash (or
charge your credit card) until you're completely satisfied with the
answers. Charities with nothing to hide will encourage your
interest. Be wary of reluctance or inability to answer reasonable
questions.
- Ask
for the charity's full name and address and demand identification from the
solicitor.
- Ask
if the contribution is tax-deductible as a charitable donation.
Tip: Contributions
to tax-exempt organizations are not always tax-deductible.
- Ask
if the charity is registered or licensed by state and local authorities
(required by most states and many communities).
Tip:
Registration in and of itself does not mean that the state or local government
endorses the charity.
- Watch
out for statements such as "all proceeds will go to
charity." This can mean that money left after expenses, such as
the cost of written materials and fund-raising efforts, will go to the
charity. These expenses can make a big difference, so check
carefully.
- When
you are asked to buy candy, magazines, or show tickets to benefit a
charity, be sure to ask what the charity's share will be. Sometimes
the organization will receive less than 20% of the amount you pay.
Tip: Don't
succumb to pressure to make an immediate donation or allow a "runner"
to pick up a contribution.
- Call
your local Better Business Bureau if a fund raiser uses pressure tactics,
such as intimidation, threats, or repeated and harassing calls or
visits. Such tactics violate the Council of Better Business Bureau's
recommended standards for charitable solicitations. Of course, any
behavior that is deemed threatening to a person or property should be
reported immediately to 911.
END OF ARTICLE