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Know Your Charity
Americans are a generous people. Overall, nobody gives more to charity than the average American--we are noted for our good hearts. It is especially so at this time of year when people are supposed to, and often do, pause to reflect on their own personal good fortune. As with all else, where there is good there is bad. There will always be people who try to take advantage of those who bear good, honest and sincere feelings.
When it comes to people trying to take advantage of other people, retired people and senior citizens often are a popular target. A recent survey by the American Association of Retired People reveals that about 80% of all Americans say they made at least one charitable donation last year. Of those who made donations, nearly half claim to have given more than $100.00, and 10% say they gave more than $1,000.00. That's the good news. The bad news is more than half of the people surveyed admitted they didn't know which organization they were donating their money to, or how the donations were actually spent. In other words, they see a "good" name, like the "heart"--this or the "cancer"--that, and they automatically assume it's a legitimate, upright charity [most of them are] and they donate money.
Since, most charities are sincere, am I making too much of this? Well, not really. Law enforcement experts estimate that fraudulent charities misuse or misappropriate more than a billion dollars every year from unsuspecting people. Cleo Manuel, of the National Consumer League in Washington, says potential donors should be aware of charities with names similar to reputable agencies, sound-alike groups that can deceive consumers by playing on name recognition. Manuel says further, "It doesn't just hurt the consumer, it hurts the legitimate charity; it gives consumers a negative view of charity solicitations over the phone."
Studies show that when you have names like "heart," "cancer," "fire," "police," "veterans," or anything to do with disaster relief, people are more than willing to dip into their pockets. The National Charities Information Bureau, whose organization monitors nearly 300 charities nationwide, says that although scam artists take advantage of generous donors, most charities are legitimate, scrupulous and credible, and channel donors' money properly.
Legitimate charitable organizations are required to register with a state's charity regulators, and often with the Attorney General's office. If you have any doubts, don't wait for the pitch-ask the caller to provide you with some information in print, and to state the name of their charity clearly, the purpose of the organization, and very importantly, what percentage of each dollar donated is spent on actual aid, and what percentage on overhead and fundraising. This may sound coldhearted, and we are certainly not trying to curtail charitable giving, or create problems for bona fide charities. But it is a fact that while there are many wonderful charities doing great work, there are also a few that are dishonest and take advantage of those who are happy to give, particularly at this time of year.
If you're interested in more information concerning this problem, there are websites on the Internet that can be checked out: among them; the American Association of Retired Persons, The National Charities Information Bureau, the National Fraud Information Center, and the National Consumers League. These and other groups protect us all from swindlers who are not interested in charity at all, but in lining their own pockets. Needless to say, if you've ever had a bad experience with a charitable group, the Attorney General in your state would like to know about it-and be sure to tell your friends as well. Word of mouth is a very powerful defense against those who would take advantage of us in the worst way at this special time of year.
Happy New Year to everyone.
(Tom Butenhoff is a First Vice President with J. E. Liss and Company, Inc.
in Milwaukee. The views are his, and not necessarily those of Liss
Financial Services or the Job Connection/Hiring
Network.)