FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

Charitable Donations:

Give or Take?

Y our charity dollars are an investment in your community, the nation, and the world. The Federal Trade Commission (FTC), the nation’s consumer protection agency, says 

it’s wise to be cautious when making your donation decisions so you can avoid scam artists who 

try to make money by taking advantage of your generosity.

Charity Checklist

Consider the following precautions to help ensure that your donation dollars benefit the people and 

organizations you want to help. They make sense whether you’re solicited by an organization’s 

employees, volunteers, or professional fundraisers by phone, mail, e-mail, or in person. 

•	 Be wary of charities that spring up overnight in connection with current events or natural 

disasters. They may make a compelling case for your money, but as a practical matter, they 

probably don’t have the infrastructure to get the donations to the affected areas or people. 

•	 Ask for written information about the charity, including the name, address, and telephone 

number. A legitimate charity or fundraiser will send you information about the charity’s 

mission, how your donation will be used, and proof that your contribution is tax deductible. 

•	 Contact the office that regulates charitable organizations and charitable solicitations in 

your state to see if the charity or fundraiser must be registered. If so, check to make sure 

that the company you’re talking to is registered. For a list of state offices, visit the National 

Association of State Charity Officials at www.nasconet.org/agencies. Your state office also 

can verify how much of your donation goes to the charity, and how much goes to fundraising 

and management expenses. 
Facts for Consumers 

•	 Don’t be shy about asking who wants your 

money. Some charities hire professional 

fundraisers for large-scale mailings, 

telephone drives, and other solicitations 

rather than use their own staff or volunteers, 

and then use a portion of the donations to 

pay the fundraiser’s fees. If you’re solicited 

for a donation, ask if the caller is a paid 

fundraiser, who they work for, and the 

percentage of your donation that will go to 

the charity and to the fundraiser. If you don’t 

get a clear answer — or if you don’t like the 

answer you get — consider donating to a 

different organization.

•	 Call the charity. Find out if the organization 

is aware of the solicitation and has authorized 

the use of its name. If not, you may be 

dealing with a scam artist. 

•	 Check with local recipients. If giving to 

local organizations is important to you, make 

sure they will benefit from your generosity. 

If a charity tells you that your dollars will 

support a local organization, like a fire 

department, police department, or hospital, 

call the organization to verify the claim. 

•	 Watch out for similar sounding names.

Some phony charities use names that closely 

resemble those of respected, legitimate 

organizations. If you notice a small 

difference from the name of the charity you 

intend to deal with, call the organization you 

know to check it out. 

•	 Know the difference between “tax exempt” 

and “tax deductible.” Tax exempt means 

the organization doesn’t have to pay taxes. 

Tax deductible means you can deduct 

your contribution on your federal income 

tax return. Even if an organization is tax 

exempt, your contribution may not be tax 

deductible. If a tax deduction is important to 

you, ask for a receipt showing the amount 

of your contribution and stating that it is tax 

deductible.

•	 Look twice at organizations that use 

meaningless terms to suggest they are tax 

exempt charities. For example, the fact that 

an organization has a “tax I.D. number” 

doesn’t mean it is a charity; every nonprofit 

and for-profit organization must have a tax 

I.D. number. And an invoice that tells you to 

“keep this receipt for your records” doesn’t 

mean that your donation is tax deductible or 

that the organization is tax exempt. 

•	 Trust your gut — and check your records if 

you have any doubt about whether you’ve 

made a pledge or a contribution. Callers 

may try to trick you by thanking you for 

a pledge you didn’t make. If you don’t 

remember making the donation or don’t have 

a record of your pledge, resist the pressure to 

give. 

•	 Refuse high pressure appeals. Legitimate 

fundraisers generally don’t push you to give 

on the spot.

•	 Be wary of charities offering to send a 

courier or overnight delivery service to 

collect your donation immediately. 

•	 Consider the costs. When buying 

merchandise or tickets for special events, or 

when receiving “free” goods in exchange 

for giving, remember that these items cost 

money and generally are paid for out of 

your contribution. Although this can be an 

effective fundraising tool, less money may be 

available for the charity. 

•	 Be cautious of promises of guaranteed 

sweepstakes winnings in exchange for a 

contribution. According to U.S. law, you 

never have to give a donation to be eligible 

to win a sweepstakes.

•	 Do not send or give cash donations. Cash 

can be lost or stolen. For security and tax 

record purposes, it’s best to pay by check — 

made payable to the charity, not the solicitor. 

If you’re thinking about giving online, look 

for indicators that the site is secure, like a 

lock icon on the browser’s status bar or a 

URL that begins “https:” (the “s” stands for 

“secure”). 
Facts for Consumers

Checking Up

Before you open your checkbook, check out 

the charity you’re considering with these 

organizations. Note: Many small, new, or local 

charities may not be rated by the organizations 

listed here. Some fraternal organizations, like 

police and firefighter groups, may not be rated 

at all. If the charity seeking your donation is 

not listed or rated, follow the precautions listed 

under the Charity Checklist to help you determine 

whether it merits your donation dollars.

BBB Wise Giving Alliance

4200 Wilson Boulevard, Suite 800

Arlington, VA 22203

(703) 276-0100

www.bbb.org/charity

American Institute of Philanthropy

P.O. Box 578460

Chicago, IL 60657

(773) 529-2300 

www.charitywatch.org

Charity Navigator

1200 MacArthur Boulevard 

Mahwah, NJ 07430 

(201) 818-1288 

www.charitynavigator.org

GuideStar

4801 Courthouse Street, Suite 220

Williamsburg, VA 23188

(757) 229-4631

www.guidestar.org

Military Relief Societies

Although the U.S. Department of Defense does 

not endorse any charity, you can learn about 

military relief societies at 

www.militaryhomefront.dod.mil.

Reducing Telephone and Direct Mail

Solicitations

Typically, when you donate to a charity, your 

name is placed on the charity’s contact list. 

The charity uses this list to contact you again 

for future donations, and often rents the list or 

exchanges it with other charities and fundraisers. 

If you feel overwhelmed with requests for 

donations, here are some steps you can take. 

•	 Tell the charity to put you on their “do 

not call” list. By law, the charity must not 

contact you again. If it does, report it to your 

state Attorney General (www.naag.org) 

or your local consumer protection agency 

(www.consumeraction.gov). You can get 

the phone numbers for these organizations in 

your phone book or through Web directories.

•	 Include a note with your donation asking the 

charity not to rent, sell, or exchange your 

personal information and donation history. 

•	 Ask the organization to limit its donation 

requests to you to once or twice a year. If 

the organization fails to honor your requests, 

you may wish to find a different charity to 

support.

•	 Sign up for the Direct Marketing 

Association’s (DMA) Mail Preference 

Service (MPS) at www.dmachoice.org. The 

DMA’s MPS lets you opt out of receiving 

unsolicited commercial mail from many 

national companies for five years. When you 

register with this service, your name will 

be put on a “delete” file and made available 

to direct-mail marketers. However, your 

registration will not stop mailings from 

organizations that do not use the DMA’s 

Mail Preference Service. The DMA also 

has an Email Preference Service to help you 

reduce unsolicited commercial emails. To opt 

out of receiving unsolicited commercial email 

from DMA members, visit

www.ims-dm.com/cgi/offemaillist.php. 

Your online request will be effective for five 

years.

•	 Sign up for the National Do Not Call 

Registry — the free, easy way to reduce the 

telemarketing calls you get. While charities 

are exempt from the FTC’s Telemarketing 

Sales Rule that implemented the Registry, 

some will not call you if they know you 
Facts for Consumers

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

May 2009

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education

don’t want to receive calls. To register 

your telephone number, or to get more 

information, visit www.donotcall.gov, or 

call 1-888-382-1222 from the phone you 

want to register. You will receive fewer 

telemarketing calls within three months of 

registering your number. Telephone numbers 

on the Registry will be removed when they 

are disconnected and reassigned, or when 

you choose to remove your number(s) from 

the Registry.

Telemarketing Sales Rule

The FTC’s Telemarketing Sales Rule applies 

to telemarketers who make calls across state 

lines on behalf of charitable organizations. The 

Rule restricts calling times to the hours between 

8 a.m. and 9 p.m. The Rule also requires 

telemarketers to promptly identify the charitable 

organization they represent and to disclose that 

the purpose of the call is to ask for a contribution. 

Telemarketers may not mislead you or lie to get 

your contribution.

For More Information and Complaints

To learn more information about making your 

donations count, visit www.ftc.gov/charityfraud. 

If you believe an organization may not be 

operating for charitable purposes, or is making 

misleading solicitations, contact your state 

Attorney General (www.naag.org) or your local 

consumer protection agency 

(www.consumeraction.gov). You can get the 

phone numbers for these organizations in your 

phone book or through Web directories.

You also may file a complaint with the Federal 

Trade Commission. The FTC works for the 

consumer to prevent fraudulent, deceptive, and 

unfair business practices in the marketplace and to 

provide information to help consumers spot, stop, 

and avoid them. To file a complaint or to get

free information on consumer issues, visit

ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. 

The FTC enters consumer complaints into the 

Consumer Sentinel Network, a secure online 

database and investigative tool used by hundreds 

of civil and criminal law enforcement agencies in 

the U.S. and abroad.