CT BBB: Give Wisely to Charity This Holiday

CROMWELL, Conn. — Forty-percent of donations are made during the last few weeks of the year. On this Giving Tuesday, BBB’s Give.org urges donors to give thoughtfully by taking the time to investigate charities before making a donation.

• Research before donating. If a nonprofit organization isn’t completely transparent, it’s impossible to know for sure the money contributed will support a good cause. Ask for documentation on how much of the contribution will be used for program services, fundraising, and management expenses.
• Watch out for overly emotional appeals. If an appeal brings tears to your eyes, make sure it is also clear about what the charity intends to do to address the issues. Visit the charity's website for details about their program services.
• Be cautious about name confusion. When charities seek support for the same cause, the names can sometimes appear similar. Before you give, be sure you have the exact name of the charity to avoid a case of mistaken identity.
• Don’t give in to intimidation tactics. If a caller causes discomfort through guilt or using an urgent plea to give right this minute, it’s best to simply hang up. Intimidation tactics are often used by scammers and are a red flag. 
• Understand registration requirements. In the U.S., about 40 states, including Connecticut, require charities to register. Keep in mind that registration with a government agency does not mean the government approves, recommends, or endorses the charity.
• Consider tax-exempt status. There are over 1 million organizations that have applied for and received charitable tax-exempt status. In part, this means these groups are eligible to receive gifts that are deductible as charitable donations and will file an annual financial form with the IRS. It does not mean the Internal Revenue Service approves, recommends or endorses the charity.
• Check the charity’s rating on Give.org. For a charity to receive BBB accreditation, it must meet 20 Standards of Accountability covering everything from governance to fundraising. If the organization does not appear on BBB’s website, that does not mean they are not a real charity, but it can be a warning that you need to do more investigation before you give.

For More Information

For more holiday tips visit BBB's Holiday Headquarters.