signs of a charity scam

It happens any time there are a group of people who need outside help. From cancer patients to victims of natural disasters, scam artists will use any available group afflicted by misfortune as a front for running bogus charities. Such activities are both illegal and unethical.

You can avoid being taken in by their scams by paying attention to the following warning signs when these bogus charities contact you asking for donations:

1. The charity provides no written information about its mission, its operating costs or how donations will be used. If it is legitimate, it will have no trouble providing such information to potential donors.

2. The charity offers you no evidence that your donation will be tax-deductible on your next tax return.

3. The charity in question tries to breed confusion by choosing a name closely resembling a legitimate charity that already exists.

4. You get pushed to make donations through applying high pressure tactics designed to increase guilt if you attempt to decline making a donation.

5. You are asked for bank account information or a credit card number before you even agree to make a donation or you are asked to make a large cash only donation.

6. You get a phone call or letter thanking you for a donation you never made and you are quickly asked to contribute even more funds.

7. If you donate a large sum, you are promised you will be entered in to win a sweepstakes.

It is unfortunate that bad people come out of the woodwork when disaster strikes. But you can be certain your donations will go to the right place if you exercise caution. Always ask questions and get answers before donating.

Filed Under: Charity Scams, Donations Tagged With: , ,

How to avoid a car donation scam

Donating your car to charity can accomplish plenty of good things. It is important to be careful, though, when making a donation. There are scam artist out there who use car donations as a means to perpetuate fraud. Doing your homework is essential to prevent yourself from becoming a victim of their scams.

Here is what you can do to make sure your car donation goes to a legitimate charity:

  • Find a local charity that accepts car donations.

Sometimes, the best policy is to find a charity already established in your community and see if you can donate your car to that organization. This may require some research on your part, but it will definitely be worth the peace of mind you will get from knowing that your car is going to the right place.

  • Try to deliver your donation yourself.

Most charities will pay for someone to come pick up your car and take it away. If it is possible, make arrangements to deliver your car in person to the charity. The benefit for that organization is that it can be a huge money saver, since picking up donated cars can end up being expensive. The benefit for you is that you will be able to make certain that your car gets into the right hands. And make arrangements with the charity, before you drive the car there, to take care of all the necessary paperwork.

  • Keep a paper trail.

If you donate an automobile that has a value greater than $500, you should attach IRS Form 8283 when you file your tax return. Proof of the donation, which includes items like a receipt from the charity in question, is required by the IRS. Also required is a copy of the car title change. A tax deduction can be made on your car donation only if you itemize your deductions. Since most cars are resold after being donated to charity, you need to know the resale price of your vehicle to include in your tax records. Make sure the charity sends you this information right away.

Filed Under: Charities, Donations Tagged With: , , , ,

Increase Donations with a Special Event

If your non-profit organization is having a hard time raising money, a charitable event might be a great fundraising idea. An event is usually a very successful venture because it allows your most generous contributors a chance to network with their peers. Plus, a little healthy competition in the donation area is never a bad thing! Try one of these ideas for your next charity event:

Music Festivals

A music festival will draw in both new and old contributors. Because you can sell tickets, refreshments, and souvenirs, this can be a very profitable night for your non-profit agency. Although some groups hire a band, if you approach them in just the right way, you may be able to convince a headlining musical group to support your cause and play for free.

Poker Night

A poker or casino night is another great idea! Rent or borrow a few poker tables and dress up your venue to look like a Vegas casino. Your guests will play with real money, but win prizes donated by local businesses. Most area companies will be willing to donate to your cause from the free exposure and the tax benefits. Because this type of event must be restricted to guests over the age of 21, you could include a cash bar and make even more money on drinks.

Licensing

Although your organization is non-profit, it doesn’t exempt you from obtaining the proper licenses for each event. Check with your local government agencies to find out what you’ll need. At a minimum, you’ll need a food and beverage license if you’re selling refreshments. Depending on your area, you may want to solicit volunteers to provide parking lot security and crowd control.

With the right event and the right promotion, your charity can raise money and provide a fun night for the community at the same time!

Filed Under: Charitable organization, Donations Tagged With: , , , ,

Benefits of charity donation

Countless legitimate charities are out there, all supporting good causes. There are literally thousands of opportunities for a person to contribute time, money, energy or other resources to support a charitable cause.

If you have never given a thought to donating to a charity, this is a good time to start. There are so many ways that making a charitable donation can benefit you and those around you.

One good reason to donate to charity is that such donations can be written off when you file your taxes annually. There isn’t a soul out there who would not like a tax break. If you donate to charity, that money does not count toward your overall tax bill. So you can kill two birds with one stone by helping others while also helping yourself.

Another reason to donate to charity is to clean out items from your home that you no longer use. Many people have homes filled with clothes, toys, books and furniture they no longer use. Donating items such as these can be as useful and helpful as simply writing out a check to your charity of choice. In many cases, these things are still in good enough condition to be put to good use by families and individuals who do not have the funds to purchase such items on their own.

Perhaps the most important reason to make charitable donations is because it fulfills a grander purpose. You are helping people who are less fortunate than you because circumstances in their lives created that situation. It is a good thing to give back when you have the means to make a difference.

One thing you can do to make it easy is to donate to a charity that has helped you, your spouse, a family member or a friend in a time of need. The best way to repay an act of service like that is to return the good turn done to you. If you donate to a charity that helped you or someone you know, you are helping that organization also make a difference in other lives.

Filed Under: Charities, Donations Tagged With: , , , , ,
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