When solicited by a charity, almost all of the money you contribute must go to the intended charitable purpose. Charitable organizations are not obligated to spend a certain percentage on their stated charitable purpose. Charities that hire professional fund-raisers will have higher overhead costs to meet, so may spend less on the actual charity they are soliciting. Consumers should ask if the caller is a paid solicitor or a volunteer for the charity and what percentage of the donation will actually go to the charity. Giving out your credit card number for identification or other similar purposes is OK as long as you don't authorize a charge on your account.
Credit cards used for identification purposes can turn out to be a costly mistake.
Con artists with access to your credit card number and expiration date may make unauthorized charges against your card. However, using a credit card to place catalog orders, make hotel reservations, or make other types of purchases from familiar, established businesses is fine. In fact, credit card charge back procedures can even help protect you if you have difficulty receiving the product or service. It is illegal for sweepstakes promotions to require any type of purchase or payment. Entrants who do not purchase magazines must be given the same chance of winning publisher sweepstakes as those who do make purchases.