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Mallie Jane Kim
As Evelyn Young was leaving the
Generosity is alive and well in the United States, even with the economy ailing. Charitable giving, though down 3.6 percent from 2008, surpassed $300 billion in 2009, according to the annual philanthropy report put out by the
But it can obviously be risky to simply say "yes" and open your wallet. How can donors be sure their hard-earned dollars make a tangible difference rather than lining the pockets of impostors or real charities that misuse funds? Experts agree that taking a little time for research is vital in order to avoid scams and to support effective organizations. "Use your heart, by all means," Berger advises. "But use your head as well."
The danger of being scammed is on the rise as the holidays approach, says the FBI, and it's always higher directly following a disaster like the earthquake last January in Haiti. As of early September, the bureau had received nearly 450 complaints about potentially fraudulent charities claiming to provide relief there. "When big money is involved, you're going to have scoundrels that come out of the woodwork," Berger says.
Many will be using high-tech tactics. Phishing, though an increasingly well-known trick, still ensnares the unsuspecting or distracted, who click on E-mail links leading to false Web sites that ask for donations. The bogus sites are designed to seem real, but credit card data and passwords are captured by the scammers for their own gain. Victims who do not monitor their bills and credit scores may not know they've been scammed for quite some time.
The best way to avoid phishing is to type a charity's Web address directly into your browser. If you need to find a group by searching, note that most nonprofit Web sites contain the organization's name followed by ".org." Consumer and charity watchdog Web sites like the
A quick search on sites like these is a great way to find out if an organization actually exists and to avoid giving to sound-alike charities. In 2005, Kent Ray Stryker of suburban Los Angeles was sentenced to 51 months in prison after he created more than a thousand 800 numbers and "doing business as" names, which allowed him to cash and deposit checks made out to "National Cancer Society" or "
Not all charities with similar names are scams, but neither are all created equal. If you want to give to the
Online or in person, the high-pressure pitch is a scammer's hallmark. The best policy is to avoid giving cash or wiring money; ask any solicitor on the street or who comes knocking on the front door for a website to get more information; and give directly to an organization rather than through a third-party telemarketing firm, which will likely keep a healthy cut, if not all, of your donation.
Choose well.
One giving trend that GuideStar CEO Bob Ottenhoff has noticed is that more and more people "invest" rather than "grant" their donations, a sign that they are looking for results. "This is an important decision I'm making with my hard-earned money," Ottenhoff says. "I want to make sure it's making a difference."
People researching ways to help in Haiti, for instance, could tell from reading the
Arthur Reimers, a Greenwich, Conn., private investor and "venture philanthropist" who practices this sort of investment giving, says that if an organization's mission piques his interest, he checks to see if its strategies appear best suited to the goal. "If there's three different ways that somebody's attacking different problems, you try to figure out which one is more effective," Reimers says.
Suppose you want to help the homeless.
Of the programs in your area, whose solutions match up best with the problem you care about most? In Washington, D.C., for example, So Others Might Eat, which started in 1970 as a soup kitchen, provides housing and food, medical and dental care, counseling, and job training. Calvary Women's Services runs three shelters exclusively for women, focusing on teaching healthful cooking, financial literacy, and life skills classes to transition residents into independent living.
In urgent disaster response situations, Berger suggests the best alternative is to support an organization already on the ground and with a track record in disaster relief. Damage to Port-au-Prince made importing and distributing emergency supplies a logistical nightmare after the earthquake, but Partners in Health, which provides community-based healthcare to the poor, has operated in Haiti for decades and was able to immediately step up its work.
Websites like Charity Navigator break down the spending of charities they rate, so potential donors can see how much actually goes toward doing good versus administrative costs and fundraising.
A six-figure executive salary can seem excessive, but complex, multibillion-dollar organizations like the
Measurable results.
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How to Avoid Charity Scams