Local Charity Investigation Sparks Donor Concerns

4/21/2010

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Local Charity Investigation Sparks Donor Concerns
 
Austin, TX - April 21, 2010 – In the wake of an investigation into a local Austin charity, Family Connections, many consumers are concerned about how to identify a trustworthy charity. In the past 12 months, BBB serving Central, Coastal and Southwest Texas has received 1,759 inquiries regarding local charities.
 
BBB Charity Reports are based on BBB’s 20 Standards for Charity Accountability and provide objective information on matters such as charity finances, appeals and governance.  Reports on over 290 local charities are accessible at austin.bbb.org/charity to assist donors in making sound giving decisions. BBB does not evaluate the worthiness of a charitable program, but recommends consumers keep the following tips in mind when considering charitable donations:
 
Watch for name confusion. Look up a charity at bbb.org to verify the name on the appeal. More than 850,000 organizations have received charitable tax-exempt status from the IRS. Scammers may use names that sound similar to those of well-known organizations to confuse donors.
 
Not all soliciting groups are charities. Consumers who want to make a charitable deduction for federal income tax purposes should verify the organization is tax exempt as a charity under section 501(c)(3) of the Internal Revenue Code.
 
Question vague appeals. Make sure the charity clearly identifies the nature of their programs. For example, if the charity says it's helping the homeless, it should specify how it is helping through shelter, food or medical care and where it is providing the help.
 
Be wary of high pressure tactics. Don't be pressured to make an immediate on-the-spot donation. Charities should welcome a gift whenever consumers want to send it.
 
Never donate with cash. Scammers routinely ask for cash donations because there is no way for consumers to recoup funds. Pay with a credit card whenever possible and make sure to get a receipt for both verification and tax purposes.
 
 
About BBB:

BBB's mission is to be the leader in advancing marketplace trust. BBB accomplishes this mission by creating a community of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models and denouncing substandard marketplace behavior.
Businesses that earn BBB Accreditation contractually agree and adhere to the organization's high standards of ethical business behavior. BBB is the preeminent resource to turn to for objective, unbiased information on businesses and charities.
 
Contact BBB serving Central, Coastal and Southwest Texas at (512) 445-4748.
 
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