DEPARTMENT:

Letter
from the Editor

Charity Checklist

’Tis the season when most people are apt to be in the spirit of giving. Be cautious, however, when you’re asked to make a charitable donation. While most charities provide essential services and resources for worthy causes, millions of dollars are lost every year to shysters. Carefully choose the organizations you’d like to support and require accountability from them.

The state’s Office of Consumer Protection offers these tips to help ensure you’re giving dollars to a legitimate cause.

• The majority of telephone solicitations are done by professionals. Frequently, the charity receives a percentage of the money contributed and the remaining amount goes to the professional solicitor. Ask the caller to tell you what percentage of each dollar donated is going to the charity so you have a better idea of how your donated funds are being spent.

• Some phony charities use a name similar to that of a better-known, reputable organization. Get the charity’s complete name, address and phone number, and the full name of the person you are talking to. Ask for the name of a person you can call if you have questions.

• Ask how and where the money will be spent. Verify that your donation dollars will be used locally if that’s important to you. Also ask for a description of the organization’s programs and services, examples of work it has done in Hawaii and specifics on how your donation will be used. Be skeptical of a charity that won’t provide printed, verifiable information about its mission and programs. You may ask to inspect or obtain a copy of its annual report or its IRS 990 tax report before you contribute.

• Know the difference between “tax exempt” and “tax deductible.” Tax exempt means the organization doesn’t have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return. Even though an organization is tax exempt, your contribution may not be tax deductible. Obtain proof that your contribution is tax deductible if that is important to you.
• Be skeptical if a solicitor thanks you for a pledge you don’t remember making. Look out for invoices claiming you’ve made a pledge when you know you haven’t.

• Don’t give money on the spot or allow a runner to pick up a contribution. Legitimate organizations will not expect you to contribute immediately if you are unfamiliar with their services. If you decide to give, write a check that’s payable to the charity, not an individual. Avoid giving cash. If you must give cash, request a receipt.

• You are not obligated to pay for or return any tickets, key rings, stationery, calendars, etc. that you receive through the mail, but did not order or agree to purchase. Appeals should not be disguised as bills or past-due notices, and if you receive what appears to be an invoice for donations you did not agree to make or for items you did not purchase, you are under no obligation to pay. Solicitations that include sweepstakes promotions should disclose that you do not have to make a donation to be eligible for the prizes offered.

• Be wary of fund-raising requests that tug at your heartstrings, especially those involving patriotism and current events. Although the Department of Defense does not endorse any specific war-related charity, you can review the Web site www.army.mil/operations/oif/FAQ.html to find out about military relief societies that provide assistance to U.S. service members and their families.

• Discuss the charity and the donation you’d like to make with a trusted family member or friend before committing any funds. Don’t provide any credit card or bank account information until you have reviewed all information from the charity and have decided to donate.

• Get independent information about the charity. Call the Office of Consumer Protection at 586-2630 and/or the Better Business Bureau at 536-6956 to find out if they have any information on or have received any complaints about the organization. If you know what state an out-of-state solicitor is calling from, the Office of Consumer Protection can help you contact the appropriate regulatory agency.

You also can check out a charity by contacting the following organizations: BBB Wise Giving Alliance (703/276-0100, www.give.org); American Institute of Philanthropy (773/729-2300, www.charitywatch.org); and GuideStar (757/229-4631, www.guidestar.org).
In short, assisting those in need with donations of time, money or goods can be very rewarding. Just make sure you make wise choices.

Cheryl Chee Tsutsumi

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