Black Money Business Jobs : How to Know if Charities are Legitimate

Discussion in 'Black Money Business Jobs' started by MsInterpret, Jun 6, 2013.

  1. MsInterpret

    MsInterpret Well-Known Member MEMBER

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    How to Know if Charities are Legitimate


    We recently got a question from a number of subscribers who wanted to know how they could be sure the charities that were soliciting them were on the up-and-up.

    Although most charities are legitimate, there are quite a few charity scams. And you certainly don't want to give your money to scammers!

    Here are nine tips to ensure your money goes to worthy causes:

    1. Do some research on the charity. If you're trying to figure out whether or not some particular US charity is worthy of support, check out:

    ==> http://www.give.org/reports/index.asp

    They publish their standards for rating charities, and then rate over hundreds of different charities using these standards.

    2. Don't give to charities where most of the money goes to executive salaries, administrative costs and fundraising. The website we just recommended, Give.org, presents a pie chart that shows the percentage of money going to programs vs. administration and fundraising.

    3. Always find out the exact name of the charity before you send a check. Many fraudulent organizations select names that sound very similar to a legitimate charity.

    4. Make sure the charity is tax-exempt under section 501(c)(3) of the Internal Revenue Code (again, for US subscribers). Otherwise, you won't be able to deduct your contributions on income taxes.

    5. Never donate if the caller uses high-pressure tactics or insists you donate now.

    6. Always ignore phone calls, letters and emails telling you that you won money or a prize from a charity, unless you specifically entered a contest. These are almost always fraudulent.

    7. Avoid charities that won't send you written material before you donate because it's 'too costly.' If an organization has something to hide, it's very likely fraudulent.

    8. Don't give cash donations, especially to door-to-door solicitors. If you know the charity and want to contribute, never write a check made out to 'cash.' Always make sure the check is payable to the full name of the charity -- that way it can be cancelled if you suspect fraud.

    9. Never give your credit card number to door-to-door solicitors, or in response to a bulk email. In fact, don't give your credit card number unless you are completely confident about the authenticity and good intentions of the charity. Otherwise, you may find yourself the victim of credit card fraud -- or even worse -- identity fraud.

    Source: http://www.scambusters.org/charities.html
     
  2. MsInterpret

    MsInterpret Well-Known Member MEMBER

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    Unfortunately, there are charities out there that say they are charities, but don’t do a great jobs at using the money donated to them. Here are some tips I got from Kiplinger’s Magazine to help you check out a charity before you give money to it.
    1. Look at Spending Priorities. Make sure that the charity is efficient. How much of their money is going to the actual charity that they boast? What does their yearly budget look like? You can visit Charity Navigator, which rates the financial health of over 5,300 charity organizations.
    2. Evaluate Accountability. Make sure the charity has a clearly defined mission and strong organization structure to get things done. Many small non-profits go through years without any significant impact in their community or area of charity.
    3. Beware of Red Ink. Charities must file a 990 form with the IRS, and if you can’t find it on their website, ask for a copy. They are required to disclose it to potential donors. If that form shows that they have negative assets, then don’t give to that charity. You don’t want that money going toward paying off debts.
    4. Gauge the Cushion. What you are looking for here is if the charity has an emergency fund. Much like we preach on individuals carrying 3 to 6 months of an emergency fund after they get out of debt, companies should have the same thing. It is expressed as their working capital ratio.
    5. Review the Charity’s Annual Report. In their annual report, the words are a little misleading. If the auditor puts “unqualified”, then they have signed off on the charity’s finances without reservation. If the auditor writes “qualified”, then he or she believes that the charity will have a hard time surviving for another year, possibly because of the loss of a major donor or a gradual decline in contributions.
    The bottom line is to do your homework before you hand over your hard-earned money to a charity this year. Giving is encouraged, but be responsible with it. Just like you would never give a homeless person money to buy alcohol or drugs, you never want to donate to a non-profit company that mishandles their donations.


    Read more: http://www.moneycrashers.com/how-to-check-a-charity-for-legitimacy/#ixzz2VTKwhmTH
     
  3. Angela22

    Angela22 Well-Known Member MEMBER

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    I hope and believe this will is helpful to those seeking to give.:)
     
  4. MsInterpret

    MsInterpret Well-Known Member MEMBER

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    I'm very cautious of who is getting my money, sometimes more then often, the money goes straight into someone's pocket.
     
  5. Angela22

    Angela22 Well-Known Member MEMBER

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    Yeah, and it's real sad, too. When people were giving for hurricane Katrina, a lot went to those not affected by the storm at all. What we received, we received personally from those who sought to give.
     
  6. Omowale Jabali

    Omowale Jabali The Cosmic Journeyman PREMIUM MEMBER

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    Good info. Thanks for sharing.
     
  7. MS234

    MS234 Well-Known Member MEMBER

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    I agree, she (MsInterpret) did a great job here.
     
  8. Kadijah

    Kadijah Banned MEMBER

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    Which brings up another caveat:

    Make sure the charity ear-marks your donation to the cause to which you are giving.

    By this standard and in the case of Katrina, the Red Cross is a scam! All that money they received in response to Katrina, the Red Cross put in their General Fund - monies they disburse as they please. Yet the Red Cross put out appeal after appeal for money to help "Katrina victims," NOT their general fund! And while I'm sure they spent "some" monies for Katrina relief, they did NOT spend ALL of it for the disaster donators thought it was earmarked for - Katrina.
     
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