I am one of the dwindling number of people who not only has a landline at home, but who also answers it.
Even when the phone number clearly appears to be a charitable solicitation, I pick it up. I have to
admit that in most cases, it’s not because of a charitable heart, but because I take glee in asking the
telemarketers how much of my donation would actually go toward services for those they profess to be
aiding.
A recent call from a group helping wounded veterans said all the key phrases to tug on the heart strings.
But when the caller got done with his spiel, I asked him the question that all charities are legally
required to answer. When he stated that "at least 10 percent" of my donation would go to the
veterans, I quickly told him that was far too little. Most of you could do the math far better than I,
but for those struggling, that means for every $100 donated, about $10 makes it to the veterans
themselves.
So if your New Year’s resolution is to be more generous to those in need, make sure your money isn’t
being siphoned away by middleman marketers.
And if you have a soft spot for a particular population – like cancer patients, children with terminal
illnesses or homeless veterans – don’t be fooled by the growing number of look-alike charities.
According to Richard Eppstein, president of the Better Business Bureau serving Northwest Ohio, legitimate
organizations such as Make-A-Wish often lose funds intended for them, when donors are misled into
sending money to all the other groups that create similar sounding names. The same goes for the American
Cancer Society and Disabled American Veterans. Those names are easily jumbled to create organizations
that seem credible.
"There are so many look-alikes," Eppstein said. "Make sure you know who you are giving
to."
Though organizations are required to tell potential donors what percentage of their donation goes toward
those in need, Eppstein said there are also ways around that rule.
"They may say, ‘100 percent, after expenses,’" leaving out the detail that their expenses eat
up most of the contributions.
"Telemarketers rarely meet our standards," of legitimate charitable organizations, Eppstein
said.
And though your heart may be telling you to write out a check for those abused dogs, sick children or
disaster victims, don’t fall for any pleas of false urgency.
"A legitimate charity has the time" to answer your questions, Eppstein said. "If I’m
asking for public donations, I should be transparent. I should be responsible."
So if you are tempted to contribute, ask the group to send you written information about the
organization. If they refuse or are reluctant, that’s a red flag.
If you do get the requested information, then check out the organization on the Better Business Bureau
website, BBB.org or give.org. The ratings of thousands of charities can be found there for free.
Senior citizens are often targets of charitable marketeering. Those seniors without computer access can
check out groups by calling BBB at 1-800-743-4222.
Some credible organizations are on watchlists currently because their leadership is paid quite well. For
example, the CEOs of groups like the American Red Cross and United Way have six-digit salaries.
But Eppstein said those salaries should not discourage donors if they support the cause. And donors
should recognize that those organizations have a local presence.
"These are large multi-national organizations," he said. "These charities have to recruit
just like businesses do."
"Consumers resent that, but they don’t understand why that exists. You’ve got to look at the big
picture."
Even though it’s not official doctrine of the BBB, Eppstein said his advice is to put your money into
charitable organizations close to home. You may even get to see the impact of your generosity.
"I see people giving money everyday to groups far away, and I think, what are you doing," he
said. "If you’re in doubt of who to donate to, give locally."
So as you loosen your purse strings this year for charitable giving, make sure you tighten your standards
so your money reaches those you are trying to help.