KEEP YOUR EYE ON THE CHARITY BALL

Have you ever wondered where your charitable donations go? How much of every dollar goes to the actual purpose of the charity? How much do those celebrity spokesmen get paid? And how much of your contribution goes to raising the money in the first place, because the advertisements, postcards, mail inserts and telethons all cost money, too? What about the people who call you on the telephone? Do you think they volunteer their time, or do you think they earn commissions based on how much money they raise?

How do you find out? One possible source is the Better Business Bureau. They handle business complaints, but they also work tirelessly to screen charities in advance and to listen to and resolve complaints about these organizations. Periodicals such as the “Wise Giving Guide,” published quarterly by the BBB Giving Alliance, can shed light on charities and help donors make better-informed giving decisions. You might want to have a look at www.give.org for more information.

Over the years, the BBB has looked at so many charities nationwide that they have been able to formulate a set of comprehensive standards called the “National Charity Seal Program.” Once a charity has met these rigorous standards, and there are twenty such standards, it is permitted to display the seal in its advertisements and on its website. Not all charities that meet the standards display the seal, because they have to pay the BBB for the privilege. But those that do display the seal have been carefully reviewed and evaluated, and you can be assured that those organizations are operating responsibly.
Keep in mind that earning the seal does not equate to any type of endorsement of the charity by the Alliance. It merely means that the charity complies with an objective set of standards. Also, understand that if you do not find your favorite charity listed, that does not mean that it failed to meet the standards developed by the Alliance. It may mean that no request for an evaluation was made. The evaluations are free of charge, so if your favorite charity has not requested an evaluation, encourage them to do so. Also, some organizations either refuse to have an evaluation performed, or give only a half-hearted effort. This should send up a red flag for you.

The full text of the Standards for Charity Accountability can be found at www.give.org, but the twenty standards cover the areas of four main areas: Governance and Oversight, Measuring Effectiveness, Finances and Fund Raising and Informational Materials.

Some of the specific standards are very obvious when you read them, but very difficult for the layperson to find out on their own. For example, does your charity’s board of directors meet, face-to-face, three or more times per year? Does the board have at least five voting members? Do any of the board members get paid, and if so, how much? What percentage of the charity’s funds is spent raising the funds? How much of the money goes for the program activities?

Donors need to know these things in order to convince ourselves that the charity is valid and bona fide. Not all of them are, and if the one you are talking to has refused the BBB evaluation, or has not met its standards, you should reconsider whether they are worthy of your contribution.

For even more information on this subject, you can contact the Pennsylvania Attorney General’s Office at 717-787-3391 or their Consumer Hotline at 1-800-441-2555. For the tech savvy among you, try going online at www.attorneygeneral.gov/press and look for Attorney General Tom Corbett’s December 6, 2006 press release, which includes several Charitable Giving Tips.

A couple of those are worth repeating here:

• Never feel pressured into making a donation.

• Never give credit card information to a charity you are unsure of.

• Never write a check to the person soliciting for the charity.

We all get solicitations for donations every day in the mail, and some of these are quite moving. Before you part with your hard-earned money, however, do yourself a favor and check out the charity. We will all be better served by your diligence. You worked hard for your money, so keep a close eye on it.

Christopher M. Abernethy has been practicing law in Hampton Township since 1976. He focuses on elder law, which includes wills, trusts, powers of attorney, living wills, and probate matters. He also is proficient in all aspects of real estate law and business law. He is a member of the National Association of Elder Law Attorneys, and the AARP Legal Services Network. He can be reached at 412-486-6624 or by email at cabernethy@aaylaw.com.