Although you may believe your favorite charity is legit, it’s worth the time it takes to check it out.
It should be listed on the IRS tax-exempt organization list. Even if their marketing material looks like the real thing, visit the IRS site to double-check. This is the only way to verify that an organization has a 501(c)(3) exemption. If the charity isn’t listed here, your contribution isn’t tax-deductible. You can find out if the charity is licensed in your state of residence by calling the National Association of State Charity Officials.
Find out how much money goes to administrative costs and how much goes to the cause the charity claims to support. Some charities have unusually high administrative costs, which may mean they are paying extraordinarily high salaries.
Be wary of organizations that appear suddenly on the heels of a natural disaster or tragedy. Even if their paperwork is in order, they may not be well-managed. Concentrate your efforts on supporting well-established charities with a history of doing good.
There is no shortage of charity scams, so before you let your heart tell your wallet what to do, take a few minutes to verify the facts so you can direct your resources to the most active charitable organizations.
