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Be charitable, but be wise
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BY CATHY JETT
The number of people dropping off donations or writing checks to Rappahannock Goodwill Industries soars during the holidays.
December is the busiest month for the organization's 27 stores, donation centers and donation containers. The biggest uptick comes during the week between Christmas and New Year's.
"There are people realizing that if they are going to get a tax deduction, they'd best make their gift before the end of the year so they can get their receipt," said Woody Van Valkenburgh, its president and CEO. "The same is true of cash donors. It's also the time of year when people think about being thankful and their neighbors."
According to the Nonprofit Research Collaborative's November 2010 Fundraising Survey, the latest one available, many charities such as Goodwill receive a significant share of their funding in the last quarter.
That flurry of donations helps many organizations aid those who are less fortunate. Rappahannock Goodwill, for example, assisted more than 3,000 area residents last year, including providing employment for more than 480 and helping another 200 find work.
But a number of organizations seeking contributions this time of year spend most of it on overhead--or are outright scams.
The 22 students participating in this year's Economics of Philanthropy and the Nonprofit Sector class at the University of Mary Washington learned firsthand how to find deserving recipients for the $10,000 that Doris Buffett's Learning By Giving Foundation provides annually.
Buffett, who has a home in downtown Fredericksburg, told the class her organization checks applicants' backgrounds to ensure that they are telling the truth, and gives money only when it will be used as "a hand up and not a handout," said Kate Gibson, a junior in the class who recently helped present checks to this year's recipients.
Buffett also told students to be wary of organizations in which family members hold all the top administrative positions, because they may be paying themselves huge salaries and using their nonprofit status as a tax dodge.
Here are the Better Business Bureau Foundation's tips for consumers who want to make wise charitable donations: VERIFY VALIDITY: Don't let emotional appeals and high-pressure tactics dictate donations. Visit bbb.org/charity to research local BBB Charity Reviews. Use online search engines and databases like GuideStar.org and CharityNavigator.org. SPOTLIGHT SPENDING: According to BBB's 20 Standards of Charity Accountability, publicly soliciting charities should spend at least 65 percent of total expenses on program activities.
Be leery when solicitors declare that all proceeds go to the cause, but fail to substantiate claims. Seek out the Internal Revenue Service Form 990 from publicly soliciting charities; this form should be made available with appeals.PROTECT PAYMENTS: Avoid giving cash, and make checks payable to charities, not individual solicitors. Always request receipts or confirmation codes for donations.
--Better Business Bureau