Avoiding Charity Fraud:  What Donors Need to Know
More than 1,000,000 federally recognized charities solicit for charitable contributions, so it pays to be cautious when making a donation.   Follow these guidelines to make sure your donations support legitimate causes. 

1. Thoroughly research the charity before donating.   Fake charity scams often set up quasi-legitimate agencies so that, at first glance, they look real; they may also name themselves something similar to other legitimate charities.                                                                            
2. Online databases such as GuideStar (www.guidestar.org), Charity Navigator (www.charitynavigator.org), and the Better Business Bureau Wise Giving Alliance (http://www.give.org/) can help you research.   
3. Beware of email solicitations for donations.  Most legitimate charities don’t use email for that purpose.
4. Never donate cash; always write a check. 
5. 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.  Investigate before you donate.  

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