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FORT LAUDERDALE, Fla.
— Competition for charitable donations during the
holidays is getting almost as intense as the hunt for
the season's hottest toys.
There are
more charities than ever before, with more than 14,400
registered with
Florida
alone — a 15 percent increase since 2006. Some are
seeing record numbers of people coming through their
doors for food, housing and financial support as the
economy continues to sag.
And they
are struggling as those same economic conditions stifle
giving. The
$307.65 billion
Americans contributed to charities in 2008 was a 2
percent drop over the previous year, the first time that
has happened since 1987, according to industry
consultant
Giving USA's
annual report released several months ago.
That's
why it's more important than ever to do your homework
before you write a check so that even a modest donation
goes where it can do the most good.
"People
have a limited amount of charity dollars. And even
one dollar
spent on a scam is one that won't go to a legitimate
organization that could use it," said
Tracy S. Thorleifson
, an attorney with the
Federal Trade Commission
who specializes in charities.
State
regulators say they are getting more complaints about
professional fundraisers, or telemarketers hired by a
charity in exchange for a sometimes hefty cut from
contributions. Some pros use high-pressure pitches or
falsely claim the money will go directly to local
organizations, said
Terence McElroy
, spokesman for the
Florida Department of Agriculture and Consumer Services
.
But by
making a plan, rather than donating on impulse, you can
come up with a gift that will make a difference in the
lives of others — and not break the bank.
KINDNESS
ON A BUDGET:
Times are
tight but you still want to give? You can if you get
creative.
—Ask
friends and family to give to a charity instead of
giving you a gift. Give them a list of choices you
already have researched.
—Volunteer
your professional expertise. Doing accounting, marketing
or paralegal work for your favorite organization saves
them lots of money.
—Check
if your company will match your charitable donations.
—Join a
giving circle, a network of people who pool their small
donations for a shared cause. Go to http://www.givingcircles.org.
—Use a
credit card that gives a portion of your purchases to a
charity — but check that the percentage is high enough
to be worthwhile. Some cards give only a
quarter-percent. Compare rates at http://www.bankrate.com
or http://www.cardratings.com,
looking in the "cash back" category.
GOOD-GIVING
BENCHMARKS:
Make sure
your money goes to those in need, not into the CEO's
pocket. These are good general guidelines from the
experts:
—Check
an organization's annual
IRS
990 form and pick those where about 60 to a preferred 75
percent of a group's money goes into programs; no more
than 35 percent is spent on fundraising (10 percent
preferred); and no more than 15 percent is spent on
administrative costs.
—A
CEO's salary, in most cases, should be less than 3
percent of the total operating budget; the average
salary nationwide is
$160,000
.
—Beware
of charities that have run deficits for several
consecutive years.
CHECK IT
OUT:
These
three sites rate thousands of charities and compile
"best" and "worst" lists. They use
different formulas, so results will vary. But a group
getting good marks from all probably is a safe bet.
—Charity
Navigator: Four-star rating system. Online data free. Go
to http://www.charitynavigator.org
or call 201-818-1288.
—
American Institute of Philanthropy
: Letter grade rating system. Lists and some other
information free. Go to http://www.charitywatch.org
or call 773-529-2300.
—
Better Business Bureau's
Wise Giving Alliance
: Reviews performance based on 20 standards. Online data
free. Go to http://www.give.org
or call 703-276-0100.
GENERAL
TIPS:
—Be
aware that most charities are exempt from state and
federal "do not call" registries. But if the
organization is using a professional telemarketer for
soliciting, as many do, they must take you off their
phone list if you ask. Report those that persist to the
Federal Trade Commission
at http://www.ftc.gov
or call 877-382-4357.
—Carefully
check out organizations soliciting for veterans,
military families or victims of recent disasters. These
are some of the most common pitches used by fraudulent
operations.
—Never
send or give cash donations.
—Ask
for a receipt showing the amount of your contribution.
—Make
sure your charity has a 501(c)(3)
IRS
designation if getting a tax deduction is important. Not
all nonprofits are tax-exempt.
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