Answer:
1) Legitimate Charities have Employer Identification Numbers (EINs).
These are also known as Tax-ID numbers. Having an EIN doesn’t mean that an organization is tax-exempt or that your donation is tax-deductible. But, it lets you know that the IRS knows who they are.
No EIN = Not legitimate!
2) Charities must register annually with the IRS and applicable state governments.
Failure to register means that a charity is unable or unwilling to provide additional information about its activities. This lack of transparency should serve as a warning sign. Plus, it is likely that your donations to them won’t be tax deductible if they are not registered with the IRS!
Bottom line – If a charity isn’t registered with the IRS or state government, you should donate elsewhere!
3) Legitimate charities should have a way of donating to them that is NOT exclusively by cash, gift card, or wire transfer.
While donations of cash or gift cards can be very helpful to nonprofits as they try to assist community members in need, charities should also have ways to accept other forms of payment. If they don’t, this is a huge warning sign of a possible scam.
Scam Watch also cautions that if you do use a check, make sure that it is addressed to the organization and not a specific individual.
4) Charities must be able to provide tax receipts for donations.
While you may or may not choose to get a receipt, having the option to get a receipt lets you know if you should even consider donating to the charity. If the individual or charity is willing to accept your donation but does not provide a professional looking receipt, this indicates that the organization may not be transparent about how it uses your funds. I
Failure to provide a detailed receipt is a red flag that the charity might not be legitimate.
5) Legitimate charities should tell you what donations will be used for.
The FTC strongly recommends checking with organizations such as the BBB Wise Giving Alliance, Charity Navigator, CharityWatch, or GuideStar which will help you get a better picture of how much of the charity’s donations go towards expenses and overhead.
Beware of organizations that:
1) Try to rush you to make a donation.
2) Use most of the money as overhead.
3) Sound very similar to another charity’s name.
4) Formed shortly after recent disasters.
Answer:
Ask the representative on the phone if your donation will be tax - deductible and if the organization is legitimate
Explanation:
sorry if its no help <3
