Question: How many free calendars and mailing address labels have you accumulated so far? Probably a lot. Charities leverage “guilt” by sending you these items to encourage you to donate to them. It works well. Otherwise, they would stop. So, as we approach the end of the year and these solicitations reach a fevered pitch, I’d like to offer some advice.
While I am not a tax or financial advisor, I am an estate planning attorney and feel a responsibility to share some suggestions with you. Whether you selected a favorite charity as a beneficiary in your will or are considering sending a charity a one-time donation – read on for some tips to ensure your hard-earned money is going where it will do some good and not just line a scammer’s pockets.
Several sites online provide information on charities to help you confirm their validity (please note, I’m just passing these along and am not endorsing any or one over another.) Here are a few:
Charity Navigator – this one rates charities on financial accountability and transparency. And provides details on how donations are used.
GuideStar – like Charity Navigator if offers detailed financial information etc. There are free as well as paid access levels.
BBB Wise Giving Alliance – part of the Better Business Bureau, it reviews charities based on 20 standards for accountability and provides reports on fundraising practices and governance.
The IRS also provides a handy tool to help; you can search their Tax Exempt Organizations section to verify if the organization is a registered 501 (c )(3) nonprofit eligible for tax-deductible donations.
Put on your research cap and check out the charity’s website. Look for transparency, clear mission statements, and access to annual reports or financial data. Read online reviews. Be alert to red flags like high-pressure donation tactics, lack of financial disclosures, or unprofessional communication.
Finally, a few tips for safe giving:
- Avoid cash donations; use credit cards or checks to keep records.
- Be wary of unsolicited appeals, especially by phone, email, or via social media.
- Focus on established charities, especially during emergencies or disasters.
Whether including a charity in your will or just considering an annual donation, protect your hard-earned assets by ensuring your money is headed where you think it is. Even if the charity you’ve selected has been around for a while, it doesn’t hurt to check them out periodically to ensure they are still a solid organization.
Your estate plan, including your will, is your tool to protect your assets and your loved ones. No one wants a dime of it to go to scammers; if it is time to create or update your will, perhaps updating your charitable beneficiaries, I’d be happy to help. Call me at 513-399-7526 or go online to www.davidlefton.com for more information.