Corrections or additions?
These articles by Melinda Sherwood were published in U.S. 1
Newspaper on December 22,
1999. All rights reserved.
Donating to a Charity
After you have checked each family, friend, and
co-worker
off the holiday gift list, it may then be time to pick a charity.
Last year individuals gave $135 billion to charities, almost 10
percent
more than the year before. You don’t even need your check book
anymore.
The Internet is making it easier to find the right charity.
Just sit down at the computer with your credit card number and pick
among the more than 600,000 organizations considered nonprofit
(tax-exempt)
under 501 (c)(3) of the Internal Revenue Code.
Philanthropic Research Inc’s GuideStar (https://www.guidestar.com)
lists over
620,000 nonprofit organizations on its site, with links to websites
and other information. Just punch in the kind of organization you’re
seeking. In New Jersey alone, this site was able to dredge up 71
organizations
that work to better the environment.
For the philanthropic junkie, https://www.Helping.org, a collaborative
effort
between AOL and GuideStar, is one of the more interesting sites. It
has timely articles and ways to give, so that it is possible to donate
funds to help the families of the firefighters recently killed in
Massachusetts. You can donate directly online.
Since there are numerous charities, foundations, and nonprofits, not
all are legitimate, and those that are may not be using your dollar
quite the way you like it. To make sure that the organization you’re
interested in giving to has tax exempt status, visit the IRS website
https://www.irs.ustreas.gov. The IRS has produced an electronic version
of IRS Publication 78, the cumulative list of nonprofit organization
holding tax-exempt status, and are eligible to receive deductible
contributions.
One of the ways to make sure your donation is well spent is to look
into the financial records of an organization. A new law actually
requires that nonprofits 501(c)(3) organizations make tax returns
available to the public, but the Better Business Bureau’s
Philanthropic Advisory Service (https://www.bbb.org) also has a
financial breakdown of 200 major nonprofits, from the American Red
Cross to the American Cancer Society. You can find out an
organization’s mission, research effort, community services, and even
compensation of chief officers, and staff. Materials include the
method of fundraising used, a break down of sources of funding, and a
pie chart that shows how that funding
is allocated. Likewise, the National Charities Information Bureau
(https://www.give.org) provides detailed reports on 400
nonprofits for
$9.95. For information call 212-929-6300.
Both the Better Business Bureau and National Charities Information
Bureau have developed standards that are a useful guide for
individuals
who want to contribute to charities. Some tips for givers:
Obtain the financial records of a charity, such as copyof the tax Form 990. Keep in mind that churches or nonprofits withless than $25,000 in revenues are not required to file these reports.Seek proof that a nonprofit is meeting its objectives.When reading an organization’s materials, look for evidence that themission statement is being fulfilled.Seek an organization that spends money on programs. Thesign of a healthy nonprofit, says the NCIB, is that at least 60percentof an organization’s annual expenses go to program activities. TheAmerican Cancer Society, for example, in 1998, spent 77 percent ofits budget on program services. The key is to avoid nonprofits drainedby administrative expenses. However, if an organization is new, theremay be higher level of fundraising and administrative costs. Becharitablein picking your charity.Be wary of sentiment without substance. Nonprofits thatmake high pressure phone calls or won’t send written material aredubious. Also, don’t let someone pick-up your contribution. Insiston using the mail.Finally, once you’ve chosen a charity, don’t give cash. Writea check made payable only to the full name of the charity, and don’trespond to letters that say you have pledged money unless you arecertain that you did. Remember that in most cases donations tocharitieslocated in foreign countries are not tax deductible for U.S. federalincome tax purposes.Top Of PageClick Here, Save the WorldIt’s a small click for mankind, but a big bang for thefundraising community.The “click-thru” fundraising tactic, best illustrated by theUnited Nation’s Hunger Site, could be the greatest advancement infundraising this century. “With just a click of your mouse, youcan feed a starving person at no cost to yourself,” the UnitedNation’s E-mail reads.The brainchild of Indiana programmer John Breen, the United Nation’sHunger Site proves that it’s possible to engage corporate money andindividual philanthropy simultaneously. In the case of the Hungersite, corporations contribute a half-cent for each click in exchangefor showing each person who “clicks-thru” the sponsor’s banneror homepage. Individuals need only tolerate a momentary commercialmessage for a win-win situation.”Click-thru” advertising may not replace TV commercials withex-Soap stars or Hollywood luminaries, but so far, it’s looking likea success. The United Nation’s Hunger site has seen”donations”grow from 172,739 to 4,823,556 over four months. On November 2, sevencorporate sponsors responded to 234,371 clicks to the Hunger Siteby contributing $16,740.79 each. The result, according to the UN:410,149 cups of food for the hungry.Although fundraising online is increasingly popular, there are ethicaland technical considerations to launching a campaign for a charityonline. With banner advertising and “click-thru” advertising,organizations do risk alienating potential donors by pushingcommercialmessages. Also there can be legal restrictions to raising money onthe Internet. Establishing a website that can process credit cardtransactions automatically can be complicated and expensive, and youshould be wary of how much control your ISP has in the fundraisingprocess.The Internet Nonprofit Center, a project of the Evergreen StateSocietyof Seattle, suggests fundraisers consider the following beforelaunchingtheir online campaign.Register the charity in your state or municipality asrequired.Review your service provider’s online material and somewebsites for charities that they service. Find out if the appeal fordonations comes directly from the charity or from the service providerfor the charity.Obtain a merchant services account from a bank or thirdparty service provider. You want to avoid “factoring” schemes,where your service provider offers to process your credit cardtransactionsusing its own merchant accounts. This puts you at risk from beingdenied future credit card services.Make a webpage that allows people to make a pledge, notjust a financial donation. Some people are still uncomfortable withgiving their financial information online. You can bill people byregular postal mail.Make certain advertisements appeal to your community.”Click-thru” sponsors should be relevant.Finally, if you do use corporate sponsors, change theadvertisingfrequently that people are seeing new ads.Previous StoryNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
