Give but give wisely: Avoid holiday charity rip-offs, says the Better Business Bureau

CHICAGO, IL – The holidays are a popular time for consumers to help others in need by donating to a charity. The Better Business Bureau (BBB) offers a free published listing of over 400 reports on charities in Chicago and Northern Illinois.

“Consumers can maximize the impact of their holiday charity donation by avoiding many common giving mistakes,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Before making a donation, smart donors take a careful look at the charity’s finances, programs and governance and how they operate.”

The BBB’s Charitable Review Program is designed to empower donors to make wise giving decisions and encourage local charitable organizations to accept the responsibility of self regulation by adhering to a set of 20 charity standards. They promote public accountability, responsible use of funds, proper solicitation and governance practices.

The BBB recommends that consumers follow these tips when donating to a charity this holiday season:

• Do not be influenced by high-pressure or emotional appeals. Giving on the spot is never necessary, no matter how hard a telemarketer or door-to-door solicitor pushes it. The charity that needs your money today will welcome it just as much tomorrow.
• Make sure you know the charity’s correct identity. With so many charities in existence, their names can blur in a donor’s mind and similar-sounding organizations are common. Be sure you know which charity you’re supporting and that it’s not a case of mistaken identity.
• Do not assume charities can use donated household items and clothing. Worn out, unusable or unwanted donated goods cost charities millions of dollars each year because the organization has to bear the cost of discarding the unacceptable donation. If you have questions about an item’s acceptability, call the charity and ask.
• “Low overhead” expenses should not be the only factor you consider. How much money a charity spends on the actual cause-as compared to how much goes toward fundraising and administration-is an important factor, but it’s not the whole story. A charity with impressive financial ratios could have other significant problems such as insufficient transparency, inadequate board activity and inaccurate appeals.
• Do not give cash. If you contribute, write out a check to the charity, not to an individual or third party that might be collecting the donation.