Oklahomans are extremely generous in helping each other and donating their time and resources to charitable causes. These tips for charitable donors aim to ensure that bad actors are unable to exploit that altruism and that donors’ charitable dollars support the good works they intend.
Take your time.
No legitimate organization will insist that you donate immediately. Resist impulse decisions. Take the time to find out if you are being solicited by a legitimate charity that uses its resources for the charitable cause you want to support.
Ask questions.
Any legitimate charity seeking your support should welcome the chance to answer your questions about their organization, its work, and its impact. Some questions to consider asking to better inform your decision and to weed out fraud are:
- Who are you? Get the full name and address and contact information for the charity and ask for more information about its programs and location.
- Are my donations tax-deductible? Your donation is only tax deductible if you give to a federally recognized tax-exempt charity. This could be a church or other organization recognized under Section 501(c)(3) of the Internal Revenue Code. If the answer to this question is, “no,” the solicitation appeal might not be from a legitimate charity.
- How much of my donation goes to your charitable programs? Sometimes fundraising costs and other fees can account for a large proportion of every dollar raised. Ask questions to determine the proportion of your gift that will actually be used for the charitable activity you want to support.
- Are you authorized to raise funds for this charity? If a fundraiser represents that it is soliciting for a charity, check with that charity to confirm that the fundraiser is authorized to raise funds for it and that the charity will benefit from your donation.
- Can you send me information in writing? Ask for information in writing about the charity’s programs and finances. Asking for information in writing can help screen out fraudulent fundraising attempts.
Do some research.
Take some time to make sure you are giving to a charity you trust. Learn more about its programs and finances, whether it complies with certain federal and state filing or registration requirements, if it is a tax-exempt entity under federal law, and what others say about it.
- Does the charity claim to be recognized as tax-exempt under Section 501(c)(3)? You can verify an organization’s tax-exempt status on the IRS Tax Exempt Organization Search.
- Is the organization in compliance with Oklahoma’s legal requirements? Charities that solicit in Oklahoma are required to register with the Oklahoma Secretary of State. Check to determine if a charity is meeting this legal requirement on the Secretary of State's Chartiable Organizations page.
- How does the Charitable organization spend its funds? You can find out more about an organization’s finances and programs by reviewing its annual IRS Form 990 tax information return, available at these locations:
- What do others say about this charity? You can find out more about the charity and its reputation by doing your own searching online and by consulting these resources:
- Better Business Bureau Wise Giving Alliance - The BBB Wise Giving Alliance is a “standards-based charity evaluator that seeks to verify the trustworthiness of publicly-solicited charities by completing rigorous evaluations based on 20 BB Standards for Charity Accountability.”
- Charity Navigator - Created over 20 years ago, Charity Navigator offers “access to data, tools and resources to guide philanthropic decision-making.”
- CharityWatch - CharityWatch was founded over 30 years ago as the American Institute of Philanthropy. It is an independent “charity watchdog.”
Be wary of “red flags.”
Among the tricks used to acquire funds by those looking to exploit well-meaning donors are:
- Similar sounding names. Bogus charities sometimes use names or logos resembling well-established and well-respected organizations. Before you respond to a solicitation for a charity with which you are not familiar, confirm the charity’s name and check that it exists.
- High-pressure solicitations. You can reject a donation appeal that makes you feel pressured or threatened. A legitimate charity will be glad to give you the time needed to ask questions and do your research.
- Solicitations in the wake of a natural disaster or tragedy. There are often many needs after a natural disaster or other tragedy. New, sometimes fraudulent, organizations and individuals frequently spring up in the wake of calamity. Even during a time of high need, take the time you need to ask questions and do the research to ensure that your donation benefits those affected by the crisis.
- Gimmicks. Most honest charities will not try to entice you to give by telling you that you have won a prize when you haven't even entered a contest. Use caution when purchasing products or tickets or when receiving free merchandise. Be careful when a solicitor thanks you for a previous donation if you do not remember making that donation.
- Requests for personal information. Never give your social security number or other personal information in response to a charitable solicitation. Do not give credit card information to an organization that you do not know.
Did you have a bad experience with charitable fundraising? If you feel you have been deceived by a charity or fundraiser soliciting a charitable donation, file a complaint with the Oklahoma Attorney General.
