Veterans Groups Warn Against Charity Scams

Only support groups granted tax-exempt status under section 501(c) (3) of the IRS Code – and remember to take the tax deduction.

5) Check The Charity's Commitment To Donor's Rights

Check if the charity has a donor privacy policy whereby the organization promises to never sell or trade donor contact information.

6) Obtain Copies Of Its Financial Records

Financial health is a strong indicator of the charity's performance. The most efficient charities spend at least 75 percent of their budget on programs and services and less than 25 percent on fundraising and administrative fees. Seek out charities that are able to grow their revenue, that continue to invest in their programs and that have some money saved for a rainy day.

Ohio Attorney General

Bobby Thompson, whose real name and identity... View Full Caption

Bobby Thompson, whose real name and identity are unknown, used money collected by his charitable group to make donations to prominent politicians, nearly all of them Republicans. He enjoyed having his picture taken with politicians, including President George W. Bush (seen here), 2008 presidential candidate John McCain and incoming Speaker of the House John Boehner. Thompson, who is now under indictment, is a fugitive and his group is under investigation by two federal agencies and nine states. Close

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7) Review Executive Compensation

Charities need to pay their top leaders a competitive salary in order to attract and retain the kind of talent needed to run a multi-million dollar organization and produce results. However, it's smart to benchmark it against similar-sized organizations engaged in similar work and located in the same region of the country.

8) Start A Dialogue To Investigate Its Programmatic Results

It takes some effort to assess a charity's programmatic impact, but it's worth the time. Talk with the charity to learn about its accomplishments, goals and challenges. Walk away from a charity that is unable or unwilling to participate in this conversation.

9) Concentrate Your Giving

If you've really taken the time to identify a well-run charity that is engaged in a cause that you are passionate about, you should then feel confident in giving it a donation.

10) Share Your Intentions And Make A Long-Term Commitment

Only with long-term, committed supporters can a charity be successful.

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