At the same time, scores of legitimate Internet companies are hoping to earn commissions from donations they generate for charities. There's nothing illegal about this, but an entrepreneur's share of the take can be huge, and donors who assume that charitable contributions made on the Internet are tax-deductible often are wrong, the investigation also found. To make matters worse, many state regulators have concluded they can't oversee Internet charities the way they police solicitors who use the mail or the phone. Conventional solicitors must register with state authorities, pay fees, post bonds and report on their finances. But Internet appeals are not like mail or phone solicitations that entail a sales pitch.
Donors visit Web sites voluntarily and give voluntarily.
The Web is worldwide, and it's easy to set up offshore sites. Internet charities can pose problems for donors, too. It's sometimes hard to know where to turn, however. Public records, particularly for non-profit organizations that are too small to be required to report to the Internal Revenue Service, can be hard or impossible to find. Some charities list no more than an e-mail address and a post office box to receive contributions.