As the holidays and the end of the tax year approach, people may turn to small business owners for charitable donations. But scammers are taking advantage of their holiday rush and are hard at work. To protect your business from fraud and expand the impact of your donations to charities that matter to you, these simple steps can help ensure Giving Tuesday isn’t followed by Regret Wednesday.
A standard checklist of questions to help you make a more informed decision. Charitable donations should come from the heart and head. Genuine charities are usually happy to discuss their mission and future plans. Before donating, please ask:
- The exact name and address of the organization
- Websites you can view
- The percentage of donations they spend on fundraising
- A clear answer on whether it is tax-free or not
- Review of the group’s time in operation and its achievements
- How they plan to use your contribution.
To avoid duds, put your charity appeal to the test. The holidays are a busy season for many legitimate nonprofits, but you may also be contacted by similar-sounding scammers. Increased scrutiny to evaluate telemarketing communications. When conducting due diligence, search for the group’s name using terms such as “fraud” or “complaint.” Check out in-depth reviews from trusted charity watchdogs.
If you’re under pressure to contribute on-site, pump the brakes. Just like you avoid impulse purchases, it’s also smart to avoid impulse donations. The best advice is to get a good night’s sleep before donating. This includes social media appeals, crowdfunding campaigns organized by friends and colleagues, and requests from local groups asking you to display signs at the till or collect donations. “Let’s Think About It” gives your small business time to evaluate the merits of the request.
Looking for more advice on making your contributions count? Please visit ftc.gov/charity.
