In the aftermath of unthinkable disasters, the goodwill and generosity of those willing to help often come as a pleasant and reaffirming surprise and comfort. Unfortunately, during periods of urgent need, such as the recent South Asian tsunami and the 2001 terrorist attacks right here, opportunists create phony charities to take advantage of unsuspecting Samaritans.
To avoid getting duped, consider a few basic ground rules for giving. First among them: Don't reply to unsolicited e-mails seeking donations, nor follow the links they may contain. After September 11, 2001, for example, several fake charities sent out mass e-mails claiming to be associated with the American Red Cross, but the link they contained went elsewhere. Instead, go directly to organizations with long histories in delivering aid and donate there.
If you've learned about a new organization that you'd like to support, be sure to do the necessary research. Here are some Internet sites that can help make sure your money will get to the right place.
The American Institute of PhilanthropyThe AIP's Charity Rating Guide & Watchdog Report provides tips on giving wisely as well as ratings of various charities. The site also provides a frequently-asked-questions page on charitable giving plus a variety of informative articles.
www.charitywatch.orgThe BBB Wise Giving AllianceThe Better Business Bureau Wise Giving Alliance's tagline is "investigate before you donate," and that's exactly what this site helps you do. The alliance selects charities with national or international programs for evaluation based on the volume of donor inquiries about those organizations. The alliance doesn't recommend one charity over another, but the site provides a clearinghouse of information regarding charities and wise giving.
www.give.orgInternal Revenue ServiceIRS Publication 78 on the IRS's Web site provides a list of organizations eligible for 501(c)(3) status—or tax exemption. Only legitimate charities can receive contributions which are tax deductible.
www.irs.gov