e-Giving is a new, quickly changing, and relatively
untested area of philanthropy. Before you donate online, you may want to
consider these e-giving tips:
- Verify who is behind the site. Learn
what you can about who is running the site, their background, and why
they're involved with the site. If the site is run by a for-profit entity,
find out how they plan to earn revenue from the site. If you can't find this
information easily on the site, that should raise a red flag. If you're not
familiar with the organization running the site, do more research before
donating just as you would with an "offline"
donation.
-
Find out what
percentage of your online donation goes to the charity, and decide for
yourself if the figure is reasonable. E-giving sites vary widely in how much
of a fee, if any, they subtract from your donation before sending it on to
your selected charity. The fee can range from 0 percent to as much as 20
percent of a donation. If you can't easily find this information on the
site, that should raise a red flag.
-
Consult a tax or
legal advisor about the tax deductibility of your online donation.
E-giving is a relatively uncharted area of tax law. According to the
Chronicle of Philanthropy, charitable gifts made via sites run by nonprofit
organizations will probably qualify for deductions, but the IRS has not
issued any formal guidance about donations made through a site run by a
for-profit company. Some for-profit giving sites are trying to get around
any potential problems by arranging for nonprofit organizations to accept
donations for them. If you buy goods at a charity shopping
site, you often
cannot deduct the charitable contribution that results from your purchase.
-
Contact the
nonprofit recipient of your online donation before making the gift, to
verify that the organization is comfortable with receiving donations from a
particular site. Some e-giving sites list nonprofits without their prior
knowledge or consent, and a charity may not even be aware that a site is
accepting donations on its behalf.
-
Give through a charity's own
website,
if one exists. Contact your favorite nonprofits to see if they operate their
own websites for accepting online donations. Then you know that your
donation will go directly to the organization.
-
Know your rights.
The Association of Fundraising Professionals developed an "E-Donor Bill of Rights" to identify what donors
should expect and demand when making an online charitable gift.
AFP believes that the basic principles
for the E-Donor Bill of Rights should contain, at a minimum, the following
donor rights:
-
To be clearly and immediately informed of
the organization's name, identity, nonprofit or for-profit status, mission and purpose when first accessing the organization's
website -
To have easy and clear access to
alternative contact information other than through the website or e-mail -
To be assured that all third-party logos,
trademarks, trustmarks and other identifying, sponsoring and/or
endorsing symbols displayed on the website are accurate, justified,
up-to-date and clearly explained -
To be informed of whether or not a
contribution entitles the donor to a tax deduction, and of all limits on
such deduction based on applicable laws -
To be assured that all online transactions
and contributions occur through a safe, private and secure system that
protects the donor's personal information -
To be clearly informed if a contribution
goes directly to the intended charity or is held by or transferred
through a third party -
To have easy and clear access to an
organization's privacy policy posted on its website and be clearly and
unambiguously informed about what information an organization is
gathering about the donor and how that information will be used -
To be clearly informed of opportunities to
"opt-out" of data lists that are sold, shared, rented or
transferred to other organizations -
To not receive unsolicited communications
or solicitations unless the donor has "opted-in" to receive
such materials
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