If charities were smart, they'd have their "Giving Tuesday" well before Black Friday and Cyber Monday. That way they would get more checks in the door before Americans blow all their cash on the two other days.
In any case, although you can contribute to the charity of your choice any day of the year, Giving Tuesday is Dec. 1. While you probably have a list of charities that you love and trust, there's quite a bit of charity fraud out there. Many fake non-profits push hard this time of year to get donations and don't spend money on the cause they are advertising.
Most people do little homework in vetting charities. Since I've researched this subject fairly intensively over the years, I can tell you that not all charities are like. The worst non-profits spend most of their income on fundraising, marketing or executive salaries. The best ones dedicate most of their money to their "program," or the reason they are raising money. You have to be careful.
Here are some tips from the Better Business Bureau and their Wise Giving Alliance on how to avoid charity fraud:
1) Watch out for name similarities. "When charities seek support for the same cause, their names are often similar. Before you give, be sure you have the exact name of the charity to avoid a case of mistaken identity." For example, there are dozens of cancer charities. Which invest the most in research? There are huge differences in program spending in this group alone.
2) Avoid on-the-spot donation decisions from unfamiliar organizations. "The holidays bring a higher frequency of donation requests outside public locations. Don’t succumb to pressure to make an immediate giving decision. Responsible organizations will welcome your gift tomorrow as much as they do today." Avoid any telemarketing or direct mail pitches. Any high-pressure tactic should be avoided.
3) Be wary of emotional appeals. "Marketers have been known to exploit the holidays to make emotional pleas to donors. Always research to verify that your selected charity operates ethically." You need to be cautious because they will pull every emotional lever possible. It's a red flag if they use these pitches.
4) Do Your Homework. Every responsible charity abides by standards for full disclosure. They must report all income and spending on Form 990 filings with the IRS and disclose their operating numbers to outside groups like the BBB, Charity Navigator, Guidestar or Charity Watch. Each group has its own rating system. If you're contemplating a large donation, I suggest you consult all four services.
The bottom line with charities is whether your dollars are going directly to the cause you want to support. Any group that spends heavily on fundraising or administration isn't doing that. Be careful and target only a handful of charities you've researched and trust. And use your gut. If an appeal doesn't sound or feel right, you can say no.
