Money Smarts Blog

Giving back: Making sure your donation counts

Jun 8, 2020 ||

With everything happening in the world today, there are hundreds of great causes and organizations that could use extra help. Just scroll through your social media feed and you’ll see the need that exists in our community and throughout the world. For those with a few extra dollars on hand, making a donation is quick and easy with platforms like GoFundMe, Fundly, 4AGoodCause, iDonate and more. But how do you know if your donation is really reaching the people who need it? Or worse yet — if the charity is a scam?

 

Unfortunately, as the need for charitable acts increases, so do the opportunities for corrupt organizations who prey on the hearts of good people. Don’t let these scammers trample your generosity — follow our tips on how to spot a fake and make sure the organization you support is legitimate.

Do your research

Finding a reputable charity is pretty easy if you know where to look. We’ve rounded up a few of the top online resources to find info before opening your wallet.
• GuideStar.org maintains up-to-date information on thousands of 501(c)(3) nonprofits. A basic search will turn up a nonprofit’s 990, giving you a glimpse into the organization’s legitimacy and how its donations are spent, including the top officers’ earnings. If the charity you’ve chosen doesn’t have this or is not willing to supply it, you may want to reconsider your donation.
• CharityNavigator.org rates charities based on their financial health, accountability and transparency to help donors make informed decisions about their contributions. Don’t see your charity listed? Dig a little deeper to find out why.

• CharityWatch.org rates charities on specific criteria and exposes abuse if they see it. Being asked for cash donations only or to give your credit card information over the phone is a red flag — don’t ignore it! Find out more about them before you give. Most legitimate organizations have secure donation options so you can feel good about your contribution while having peace of mind.

 

If it’s fishy, it might be phishing

A phishing scheme occurs through online communication or an email. The organization or person will pretend to be from a health agency or the charity itself and use sophisticated techniques designed to trick you. If they ask for your social security or bank account numbers or they have you link to a different website or survey, STOP and follow your instincts. Retirees are prime targets for phishing schemes, so be diligent and assist a parent or grandparent if they ask for advice.

 

Robocalls

Not all scammers work online. There are some who still use the phone as a way to trick people, but charities, government agencies and reputable companies usually won’t contact you by phone. If you receive a call requesting a donation or offering a service that requires offering up sensitive information like credit card, bank account or social security numbers — HANG UP.

No money, no problem

Volunteer service is another great way to support the cause you care about. If you have extra time and can volunteer at your church, local food bank or nursing home, chances are good that these organizations will greatly appreciate it. Spending your time with people who may need social interaction or a little help around the house is a great way to give back to your community. You can also donate food, clothing or other goods to help make a difference.

 

As Winston Churchill said, “We make a living by what we get, but we make a life by what we give.”
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