Consumer Watch: Check out charities before you donate

photo Ellen Phillips

While the stock market seems pretty stable right now, layoffs at work still occur and unemployment remains too high. Though a general lack of family funds haunts many of us, lots of Americans still find the heart (and money) to give to those less fortunate. Even though I wrote a column some time ago about a few of the best charities to which we should consider donating, some "charities" aren't necessarily in the best interest of whomever they are supposed to support.

For example, the knowledge of where our donations go is sometimes pretty appalling. Let's say you give $100 to a certain group, believing that sum will clothe or feed a certain amount of people. Later, you learn that only 30 percent of your contribution goes where you thought it did, and the other 70 percent is spent on administrative costs.

I seriously doubt you'll be as likely in the future to give to this organization (or any other for that matter). So before your next donation, think about groups on the receiving end of your hard-earned money and ensure you're not taken prisoner in the battle for philanthropic gifts, no matter how small the sum.

> Check a charity watchdog group. For example, I used the Council of Better Business Bureau's Philanthropic Advisory Service (give.org) to look up the Chattanooga Ronald McDonald House. Not only did I discover the name and salary of its administrators, among other pieces of informative tidbits, I also found that 69.4 percent of its funds went to its programs (a nice sum), 19.5 percent is spent on fundraising, and only 11.2 percent goes toward administrative costs. Along this same line, be certain the organization to which you're contributing is really the one you want - not a "sound-alike" - and that they spend at least 60 percent on the cause itself. After all, you don't want your $1 or your $1,000 helping to pay the salary of the VP in Charge of Toilet Tissue Maintenance.

> Know what the group's intent is and how they achieve it with your help. If the local law enforcement officers association, for example, claims to help widows and orphans of slain officers and you check it out to your satisfaction, then pay up by all means. On the other hand, if the caller stutters and stammers, only to come up with "Your pledge is going towards buying 'stuff'..." tell this shyster/idjit to remove your name and number off his list, never to call again.

Run, not walk away from groups that refuse to send you written info about the charity before you write the check or charge the credit card. Demand to be sent proof in writing that the amount is tax-deductible. Finally, never allow someone to pressure you to "contribute" over the phone.

Some groups may ask to send a representative to pick up your contribution in person. Say No. If they aren't strictly on the up-and-up, they could be coming to case the joint for later illegal activities.

Don't spend your money on "causes" viewed over the Internet unless you see a statement that assures encryption capability (i.e. "TRUSTe" or a BBB Online logo). Moreover, always look for the "s" at the end of "https" to assure you your financial information is as safe as possible, assuming you have great antivirus protection, and use safe, safer, safest passwords.

If you're sent unsolicited items, such as a box of cards, address labels, and so forth that ask you to submit a donation, don't feel like you should pay for these goods. By law, you're entitled to keep whatever comes to you unsolicited and you don't owe one red cent!

A final site to visit is guidestar.org. It connects donors to non-profit organizations and provides info about the purposes and finances of more than 650,000 public charities.

(One tidbit: Besides St. Jude's, a favorite charity of mine is Operation Homefront because of its work with our wonderful military heroes and heroines. Whether directly responsible or acting as an advocate through other organizations, following 9/11, Operation Homefront has helped more than 740,000 families and personnel nationwide and invested $128 million in programs that support them. It provides emergency financial and other assistance to the families of our service members and to our wounded warriors and, in just twelve years, Operation Homefront has raised over $230 million in cash and gifts in kind. Over 400 families live in homes that will be given to them after a year mortgage-free, and Operation Homefront Villages remain filled with families at key medical facilities where families stay free of charge while the wounded vet is medically discharged. Several morale programs are in place, such as Hearts of Valor, a program designed to bring both men and women caregivers together as they go through the difficult task of caring for our wounded. And unlike many charities that take a big bite of your donation pie to fund its staff, 94 cents out of every dollar donated to OH is spent directly on the needs of U.S. military service people. Not only has this earned the organization the coveted four-star status from the watchdog group Charity Navigator, it also places OH in the top 3 percent of all charities. Operation Homefront is an excellent choice in your Combined Federal Campaign #12526. And to this wonderful organization and to the others who serve our military, we salute you!)

Ellen Phillips is a retired English teacher who has written two consumer-oriented books. Her Consumer Watch column appears every Sunday. You may contact her at consumer watch@timesfreepress.com.

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