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Verify Charities Before You Donate Goods

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The Tampa Tribune

Published: September 23, 2007

I'm always sad to see the summer end. The kids go back to school and the relaxed attitudes that go hand-in-hand with hot weather shift. But the one thing I don't mind about the change in seasons is an opportunity to clean out my closet.

In years past, I used to simply pile up the car and take all the stuff to a local Goodwill or Salvation Army drop box. Unfortunately, those boxes are not as clearly marked as they used to be.

I recently had the experience of putting something in a drop box with a red cross on the front before reading the disclaimer that noted it wasn't really an American Red Cross collection bin and only a portion (how much of a portion was unspecified) of proceeds would go to the organization I thought I was supporting. I was annoyed, to say the least.

And - notes Bennett Weiner, chief operating officer of the Better Business Bureau's Wise Giving Alliance - I'm not the only one. Here's how to make sure it doesn't happen to either one of us again.

Seek More Than Name Recognition

Pick a well-known organization. But don't rely on name recognition alone. Less-than-scrupulous groups often use names or symbols that make them appear to be a charity, when in fact they aren't. It's particularly important to be wary when it comes to unsolicited mailings or drop boxes like the ones you often see outside of supermarkets and strip malls.

Get documentation. Real charities are an open book, says Deborah Mitchell, a project editor at charityguide.org. Their records are public, so they'll be willing to offer up any paperwork you ask for, including tax returns and a 501(3)(c) number. The latter proves that a group is a nonprofit, religious or educational organization.

Ask questions. Don't just assume that all thrift stores are using their proceeds for a good cause, because they're not. In fact, of the 25,000 resale and thrift stores in the country, only about 30 percent are run by charities, according to the National Association of Resale and Thrift Shops. Before you donate, ask what charity is benefiting from the sale of your things and what percentage of the proceeds actually gets passed on. Then follow up with that organization to double check the facts. If it's legit, the thrift shop should have no problem providing you with the details of the benefiting charity, along with a contact phone number and any other information you want.

Look for niche organizations. The Salvation Army and Goodwill are both great charities, but remember that there's a group out there for virtually every donation. If you have a prom dress that you know you'll never wear again, it might be better appreciated by a group like the Glass Slipper Project in Chicago, which will clean it up and give it away for free to a girl who can't afford to buy one.

Don't Cost The Charity Money

Follow the guidelines. Big charities will often post their donation rules on the Web, so you can access them easily before you drop off your goods. As a general rule, though, make sure the clothes you're giving away are clean and that there aren't any missing buttons, broken zippers or stains.

You could actually cost the charity money if it has to spend a lot of time sorting through donations to get rid of your old socks or that ripped concert T-shirt from 10 years ago. And if your donation includes things such as toys, it might be a good idea to call in advance, Mitchell says, because there are so many safety issues to consider.

Get your tax write-off. Take note: The rules have recently changed, and in order to claim a charitable deduction on your taxes, the goods you donated must have been in 'good used condition or better,' according to the IRS. Use your best judgment, and be sure to add up the value of your donation, because the charity won't do it for you.

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