Choosing A Charity: Separating Fact From Fiction

It is no secret that an abundance of environmental concerns are prevalent today, such as water contamination, fracking, oil drilling, deforestation and pollution. Just as these concerns exist in large numbers, so do organizations promising to care for the environment and work towards alleviating these problems. Unfortunately, however, not all organizations are legitimate or truthful. Before donating to an organization, it is crucial to find out if its work is genuine or if it is simply a hoax.

 
Researching a charitable organization before donating to it can help consumers determine its validity. Charitable organizations, often referred to as 501 (c)(3) groups, must go through a series of legal processes to gain nonprofit, tax-exempt status. Foundation Group provides a comprehensive explanation of how 501 (c)(3) organizations attain their status here. First, a form titled Articles of Incorporation must be filed by a corporation on a state level. This form allows an organization to present itself as a nonprofit. Next, Form 1023 must be filed with the Internal Revenue Service to obtain 501 (c)(3) tax-exempt status. The IRS analyzes the organization’s programs and potential benefits during the application process. Finally, if granted 501 (c)(3) status, an organization must file paperwork identifying it as such and apply for various other state level benefits, such as state sales-tax exemption.

 
Over the course of an organization’s lifespan, it will leave a significant paper trail, which can be used to determine its authenticity. 501 (c)(3) organizations utilize a variety of forms, such as Form 990, in their operations. This form must be filed with the IRS if an organization makes more than $25,000 yearly.

 
There are a number of websites that exist to fact-check and identify organizations. Ratings agencies and charity databases, such as GuideStar and Charity Navigator, collect records of charitable organizations and file them online. Additionally, Snopes is a fact-checking website that may be used to research fundraising movements or the organizations behind them. By viewing these records, individuals may be able to make more-informed choices before donating their money to organizations.

 
The reality is, however, that not all individuals conduct research before opening their wallets. Perhaps they fear it will take up too much time or do not know that public records of organizations are available. Emily Miller, an English and International Studies major at The College of New Jersey, admitted to not researching organizations before donating to them. Miller explained, “I do research on businesses, like store and restaurants on Yelp or TripAdvisor…For organizations, it’s a little harder and I personally don’t often look up financial reports, I just kind of trust word of mouth if a charity is honest or not.”

 
Marketing major Monica Nadolna, however, prefers to look into where her money is going before she considers making a donation. Nadolna explained, “Honesty is an important indicator of a trustworthy organization. Showing consumers where money is coming from and how it is being used provides transparency. If I’m donating money, I want to see how it’s being used.”

 
Nonprofit organizations are not just those with household names, such as UNICEF or PETA. In addition to global and nationwide charities, a variety of organizations exist on a local basis. Trenton, New Jersey based organization Isles aims to create healthy communities. Among its programs, Isles offers environmentally-based aid, such as water-quality testing and urban agriculture programs. Similarly, the New Jersey Environmental Justice Alliance aims to raise public awareness of environmental concerns and construct responsible environmental policies.

 
From raising money to save endangered animals to improving water quality, a myriad of organizations looking for donations exists. Whether they are local or international, organizations need funds to support their work. However, not all organizations are trustworthy or authentic. In order to determine the best recipients of hard-earned money, research must be done. This could be as simple as a quick Google search to verify the background of an organization or as thorough as an examination of its financial reports.

 
It is imperative that individuals research organizations before they make the decision to financially support them. Hoaxes exist, but so do authentic organizations. Plenty of organizations want to make a genuine difference in the world today. Before donating, choose wisely. The world depends on it.

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