Charitable Contributions—
The Facts about Giving Wisely

Charitable organizations, which provide benevolent, educational, philanthropic and humane services, fulfill a valuable role in society.

Most charities are honest, well-run organizations. Unfortunately, a small number try to take advantage of the goodwill and generous nature of people who want to contribute to worthy causes.

Money given to dishonest organizations hurts in two ways: the benefit is wasted because the organization does not fulfill its promised good deeds; and the money is diverted from reputable charities that would use it to provide valuable services.

Giving is important, but make sure you are giving wisely. Here are a few things to think about before making a donation to any charity.

It's the Law

The Utah Charitable Solicitations Act was enacted to protect both consumers and legitimate charities. This law requires charities to register annually with the Department of Commerce, Division of Consumer Protection. Unless they are granted exemption under the law, they must fill out an application and pay a registration fee each year.

Even if a charity is properly registered, remember that registration is not the same as endorsement. The charity is prohibited from stating or implying that registration constitutes endorsement or approval by the division or any other government entity. Click here to see if a particular charity is registered.

Before You Give:

Know exactly how the money will be used. Any organization will have expenses; the amount spent on such expenses will depend on the size and nature of the charity and the length of time it has been in operation. Some charitable organizations hire professional fundraisers or launch expensive fundraising campaigns, such as circuses, variety shows, concerts or a sweepstakes. Others pay high salaries to executives and solicitors.

Obviously, more money spent on overhead and fundraising means less money spent on the cause. State law does not require that charities give a designated percentage of the money they raise, but the percentage of money that actually goes to the charity must be stated on the registration application.

Find out how the contributions will support the cause. Some programs provide direct monetary assistance, some support research and others consist of public education about certain problems.

Ask for written information. Don't be afraid to ask questions: What is the full name of the charity? What is the permit number? Are solicitors paid or volunteer? What programs and services does the charity provide in Utah?

If you have any doubts, check it out!

Beware of These Warning Signs

A few things that could tip you off to a charity scam:

• A solicitation that appeals to your emotions or beliefs but offers little or no information about the actual charity. Don't be swayed by a sad story until you have all the facts.
• Organizations with names that sound similar to those of well-known organizations. This does not indicate affiliation or worthiness. You might think you are contributing to a nationally recognized charity, when in fact, you are contributing to a fake.
• Sweepstakes offers or free gifts that are sent with the solicitation. Gifts may include anything from greeting cards to key chains. Never feel you must donate in return for an unsolicited gift.
• Pressure to contribute on the spot, or an offer to send a representative or a bonded courier immediately to your home to pick up your donation. A legitimate charity will gladly accept your donation today, tomorrow or a month from now.

Choose Your Charities With Care

Even if you select a well-known charity, take the time to find out exactly where your money is going and what it is being used for. Select organizations whose interests and concerns are similar to your own and evaluate the organization's goals and programs. Do you feel that these goals are realistic? Do they have a good plan for reaching those goals?

You may also wish to check an organization's history and accountability with the following two services:

Better Business Bureau
5673 South Redwood Road #22
Salt Lake City, UT 84123
801-892-6009
800-456-3907 toll-free in Utah

Wise Giving Alliance
4200 Wilson Blvd., Suite 800
Arlington, VA 22203
703-276-0100

Taking the time to carefully select your charity will pay off in the long run.

Assert Your Rights

You have more power as a consumer to make a wise donation if you know your rights regarding charitable solicitations. You have the right to:

• Solicitations and informational materials that are accurate and truthful.
• Solicitations that include a clear description of the programs and activities for which funds are requested.

Direct contact solicitations, whether over the phone or at your front door, must identify:

• The solicitor and their relationship to the organization;
• The name of the organization or the cause; and
• The programs and activities for which the funds are requested.

Solicitations in conjunction with the sale of goods, services, tickets, or admissions must identify:

• The benefiting organization;
• A source where you can get more information; and
• The actual or anticipated portion of the sales or admission price that goes to the organization.

If you feel that a charitable organization has misrepresented themselves to you, or has given you false information, please inform the Division of Consumer Protection.

Protect Yourself

Take precautions when making a contribution, even after you have investigated the charity.

• Never give credit card or checking account information to any organization with which you are not familiar.
• Never send cash through the mail. If you must make cash donations, make sure you get a receipt in return.
• Always write checks to the organization, not the individual collecting the money.
• Don't send contributions to a post office box. Make sure you know where your money is going.

Remain in control of the situation. You have the right to decide to whom, when, and how much you will give.

If you want more information or believe you have been victimized by a fraudulent charity, please contact the Division using the information in the footer below.