Be purposeful in donating to the “right” charities

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The holiday season is here! For many, it’s a feel-good time of happiness, joy and caring, with a peace-on-earth attitude around the world. Along with decorating, shopping and celebrating, it’s a time of generosity and hope.

Canyon Lakers have shown time and again how much they care about their neighbors and community. Several Canyon Lake families have benefited from their neighbors’ help just this past year: Danny Bain with his wife and two children, and Amy Martinez with her husband and two children, both suffered from tragic illnesses. Mike Heider passed away suddenly leaving his wife and two children, and Eric Seaman, whose parents are residents, left behind his wife and children when he was killed in a helicopter crash while on a military mercy mission in Nepal.

Many reached out to help fellow Canyon Laker Amy Martinez and her family after she had both feet and both hands amputated following a medical emergency this year. Photo by Donna Kupke

In true Canyon Lake spirit, the friends, neighbors and businesses of these families stepped up immediately to help with finances, medical needs, meals and help.

According to the National Center for Charitable Statistics (NCCS), more than 1.5 million nonprofit organizations are registered in the U.S. alone. Most people choose to give to charities that are close to their hearts for personal reasons because of an experience or passion.

But before handing over that hard-earned money for someone else to spend, one might want to know it will be spent wisely, where it will do the most good. It’s a good idea to research any nonprofit before donating, even if it’s been donated to in the past. There are several websites that can offer information on most charities.

According to Consumer Reports, the three major charity “watchdogs,” Charity Navigator (charitynavigator.org), BBB Wise Giving Alliance (www.give.org) and Charity Watch (www.charitywatch.org), are the most recommended sites providing information about a charity’s functions, finances and management.

Although some sites charge both user and charity, these three are free. Two other free sites that can be useful are Guide Star and Give Well.

One of the most important aspects, and one that has shocked many who “surf” the web, is how much of the money donated to some charities actually goes to administrative expenses. Very large charities need to pay their top leaders a competitive salary to correctly run a multi-million dollar organization. Many would agree it’s usually better to contribute to a charity with a well-paid CEO that is meeting its goals than to support a charity with an underpaid CEO that fails to deliver. A good site to check CEO compensations is Charity Navigator Analysis (www.charitynavigator.org). For any charity, at least 66.6 percent of its donations should go directly towards their programs. Many donate much more, some as much as 95 percent. However, many are not so charitable. CNN conducted a year-long study and found organizations that actually devote less than 4 percent of donations raised to direct cash aid. Some charities gave even less. One diabetes charity raised nearly $14 million over a 10-year period and gave about $10,000 to patients. Several organizations actually spent no cash at all on their cause!

There are several things to check before donating (according to the above-mentioned charity “watchdog” websites).

• First, is the donation tax deductible? It’s important to make sure it is a 501(c)(3) charity, meaning it has filed with the IRS as a U.S. nonprofit, enabling its contributors to take a tax-deduction for their gifts. Note that some charities are 501(c)(4) organizations, generally not tax-deductible.
• Be sure they file IRS Form 990, an annual reporting return, providing information on the organization’s mission, programs and finances. This can be viewed at the National Center for Charitable Statistics (NCCS) website (www.nccsweb.urban.org). Note that religious institutions such as churches and synagogues typically do not have to file Form 990.
• Are there complaints against the charity’s practices? Again, this information is found easily on the watchdog websites.
• Check a charity’s personal website for information about the group’s mission and achievements, and check the donor privacy policy regarding the personal information of their donors.
• Find out what percentage of donations go to actually support the programs in lieu of overhead and administrative costs. Be wary of a charity that says 100 percent goes to support the cause. After all, there has to be at least some overhead.

What do savvy donators recommend?

• Don’t drop money into canisters at the checkout counter, and don’t hand over cash to solicitors outside the supermarket, easy pickings for scam artists. Smart givers only support groups granted tax-exempt status.
• Beware telemarketers. Although charities occasionally will solicit donations through telemarketers, it’s not uncommon for phone solicitors to retain the vast majority of the donations that they bring in. If contacted by phone, ask if the solicitor is a paid fundraiser and how much of a donation goes to the charity. Get that in writing before giving. If the group won’t provide it, consider that a bad sign.The harder a telemarketer pushes before providing information, the more likely they’re a scam artist.
• Don’t hesitate to hang up the phone. Ask for written information about the charity, then hang up the phone and do some research. Once comfortable with the charity, send the organization a check directly in the mail, so 100 percent of the gift goes to the charity and not the for-profit fundraiser or telemarketer.
• Be careful of impostors. Scam artists often use sound-alike names to trick donators. For example, Make-A-Wish Foundation officials say they constantly get complaints from people who were solicited by sound-a-like charities such as “Kids Wish Network” and “Children’s Wish Foundation International” which hire professional telemarketers to aggressively pursue donations. Make-A-Wish does not hire professional telemarketers.
• Don’t succumb to pressure tactics. Well-run charities don’t use pressure tactics to garner support for their mission. They don’t have to. Their good work and financial health speaks for itself.
• Do not feel compelled to give because a gift was received. Just because some mailing labels, cards or any item was received, a donation is not mandatory. Be especially wary of sweepstakes that require a contribution to enter. Again, a reputable charity doesn’t need to employ such inefficient and deceptive fundraising tactics.
• Send the donation directly to the charity. Never, ever divulge any personal or credit card information. Once research has been done and the giver feels comfortable, send the contribution directly to the charity. Never send cash but pay by check or credit card so there is a receipt of the donation when it comes time to take the tax-deduction
• Tell the charity not to share any personal information. Especially when a small donation – say, $10 or $25, is sent. There is a high probability that the organization will then sell or trade contact information with other charities. It isn’t long before the well-intended donator’s mailbox is overflowing with solicitations. Often older Americans get caught up in this vicious cycle because they respond with a small donation to each new appeal, often full of heartbreaking photos.
• Concentrate the giving. When it comes to financial investments, diversification is the key to reducing risk. The opposite is true for philanthropic investments. Spreading money among multiple organizations not only results in more appeals, it also diminishes the possibility of any of those groups bringing about substantive change as each charity is wasting part of the gift on processing expenses for that gift. Those expenses are often the same dollar amount for a donation of $10 as they are for $100 or even $1,000.
• Many people choose to donate non-cash items such as clothing, appliances, furniture and vehicles. Most charities can only make use of items that are new, unused or nearly new. If a person doesn’t have any use for that tattered old couch, rusty washing machine, or other used item, the charity probably won’t either.
• Consider selling items, at a garage sale or through websites such as Craigs List, and donating the proceeds to charity.
• Vehicle donations have become more popular these days. Try to avoid the for-profit intermediary organizations that advertise so pervasively for car donations as they keep the vast majority of the donation. Even the most reputable of the agencies keep nearly 50 percent of the car’s value to pay for the pick-up or tow.
• Transfer the vehicle correctly. If the charity asks the assignment of ownership space be left blank so they don’t have to re-title the auto, find another charity. If not signed over to the nonprofit, the donor will be held responsible for any tickets subsequently incurred or, even worse, liable if it’s used in a crime.

Remember, the charity will probably not use the vehicle to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and doesn’t bother to register that car, it’s still the donor’s in the eyes of the law. For more information, please see IRS Publication 4303, A Donor’s Guide to Vehicle Donations.

There are countless charities to choose from so it can be overwhelming to find the “right” one. Experts say it’s best to be specific when looking. For example, rather than a broad search of “veterans,” target veterans with brain injuries or homeless veterans. The search can be even more specific, such as veteran amputees within the Inland Empire. There is a charity for nearly everything imaginable!

Big or small local organizations? Money or items or time/services? No one can say which charities have the “best” cause. That’s a decision the individual must make. Unbelievably, individual donors in the United States collectively give far more money to charities than foundations and corporations combined.

Everyone wants to know their money is going where they intend and doing the most for the intended purpose so it is very important to know the charity is legitimate. So, no matter the decision, be absolutely sure to verify and check out who will receive those hard-earned pennies.

A few local charities that other Canyon Lakers are donating to include HOPE (Helping Our People of Elsinore), Cops for Kids, Ronald McDonald House and Animal Friends of the Valleys. Around the holidays there are also several charities collecting toys and food. Local schools and churches are always a good choice. The best way to find out is to check with friends, neighbors or in The Friday Flyer.

Many Canyon Lake clubs and organizations help charities as well. The Lions and Lioness clubs, the Junior Women’s Club and the Fine Arts Guild are but a tiny few. Throughout the year, many Canyon Lakers gather to help within the community with beach and park clean-ups, food drives and more.

Of course there are also families living in Canyon Lake needing help for one reason or another, an accident or illness or other tragedy. The Friday Flyer is an excellent place to find local philanthropic endeavors in the community. There are several charity drives happening this month, so be sure to check each week!