Tips for Giving to Fire Victims

Oct. 24, 2007 — -- Want to help out the victims of the California wildfires?

Great, but before you get your checkbook or credit card take a few minutes and research the charity you are considering. While a lot of good people mobilize to help out during a crisis or disaster, many others see it as a good opportunity to scam folks out of their money.

Todd Cohen, editor and publisher of philanthropyjournal.org, said that a few minutes of research can help avoid the scam artists.

First Cohen suggests checking out the charity's Web site.

Look to see what type of information the nonprofit discloses. Is there a copy of its tax return? An annual report? How about information about the board members and the group's staff?

While the lack of such information on a Web site is not necessarily an indicator of fraud, Cohen says it can raise more questions.

"When in doubt, ask questions," he said.

Cohen said donors should also ask charities how they plan to spend the money, where they get most of their donations from and what percentage of its donations or annual budget goes for administrative costs.

For further research, Cohen suggested checking the background of a charity at either guidestar.org or foundationcenter.org

GuideStar, for instance, says that all nonprofits listed on its site are either registered with the IRS or have provided proof that they meet the IRS criteria for exempt organizations. If a charity is not listed on its site, GuideStar suggests asking to see its letter of determination. If the organization is faith-based, ask to see its official listing in a directory for its denomination.

GuideStar offers a number of suggestions for picking the right charity. It says there is no right or wrong choice of what type of organization you want to contribute to, but just a question of what is right for you. Here are some of GuideStar's tips.