6 Tips on Spotting Charity Scams
With an increasing number of charities and an increasing number of types of Charities, it is important we know where our money is going.
With a growing number of charities and a continual complication of the laws that define and regulate charities, we are all more concerned with where our money is going. It must be understood by all most charities are non-profit organisations. They do not make a profit from their activities, but they do use a portion of the money they receive as donations to fund their operations. Some charities are even not in the activity of helping those who need it directly. They might work more as an operation to collect donations and use other means to supply a product or service that is used as a means to generate donations. Charity Christmas cards are a perfect example of that. To put it simply, charities come in a huge range of structures, and cover a huge range of different operations. This means the general consumer can get lost when choosing where they wish to donate their hard-earned money. Scam charities continue to grow, and they bring a bad name to all those doing a great job for the community and society. Before you donate to any charity, it is worth taking a second look. Here are some essential guidelines.
- The Second Look. Scam charities normally prey on opportunistic situations. They may be claiming to be gathering money for a natural disaster or some other issue that has a huge amount of media attention. It is easier for them to invite donations with success when the general public has been exposed to the emotion of an incident.
- Location. Just like any other operation you are dealing with, knowing their physical location is extremely important. Having the full-contact details of their company while knowing their address in your country, state and region, is absolutely essential.
- Registration. All charities will have to be registered with a government body in their region. For example, the Salvation Army is registered in each state of Australia. This means they can collect monies in each region in the fight against . For your donation to be tax deductable the charity will have to provide you with an official receipt, and the registration number that legitimizes their operations.
- Ask the Percentage of Monies That Actually Reaches the Needy. Many people still think that all of the money, they donate to a charity goes to the people who need it. In fact, in most cases, this is definitely not the case. Non-profit organizations may not make a profit, but they may spend heavily on their people and their operations. Non-profit organizations are a very good cover for deceptive individuals with skill and knowledge of their legal situation, and know how to milk a very above-board looking operation of much of the money they are receiving. The true charities and the people that work for them will have an answer to this question, and the best will provide a full breakdown of each dollar that is received, and what it is used for. They are used to someone asking this question, and they understand your concerns.
- People Attitude. Professional charities understand they are in existence because they receive donations. They understand that a donation is a personal choice. You should be highly wary of those individuals who are using pressure and other emotional strategies to push you into making a donation, or making more of a donation, than you can afford.
- Online Monitors. There are a number of companies specialized in moderating and managing charities in their region, state or country. These monitoring agencies are usually size specific. In other words, if they work on a global level, they will only monitor global agencies. If they work on a regional scale, they will monitor their region. In actual fact, they are more offline monitors with websites displaying their results.
The best way to ensure your donations are being used in the right way is to donate to charities you trust, know and they have been established for a long time. Scam charities work to pressure people without warning. If you are going to donate, planning and preparation is advised.
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