Long on Generosity, but Short on Cash? Don't Let the Economy Curb your Giving Impulses

BBB Wise Giving Alliance Suggests "Alternative" Giving Possibilities

Arlington, VA, November 30, 2004 - Many charities are counting on the generosity of the holiday season to bring in a significant portion of their contributions revenue, despite a slowly recovering economy. If you're not able to give as much as you would like this year, you may wish to consider "alternative" giving possibilities. And, you'll definitely want to ensure that your donation, no matter how big or small, does the greatest good.

"The current economy may put the bite on both donors and charities at precisely the moment when contributions and the 'safety net' provided by charities are needed the most," said Art Taylor, president and CEO, BBB Wise Giving Alliance, "Those able to give should take extra care to make sure that their dollars end up in the hands of well managed charities. Those who are not able to donate cash should explore creative 'alternative' giving opportunities."

The BBB Wise Giving Alliance emphasizes that whether donating cash, goods, or services, donors should check out charities before they contribute.

"Even if you scale back your contribution, it is no less imperative that you take prudent steps to make certain the charity is worthy of support. The BBB Wise Giving Alliance offers detailed reports on hundreds of national charities, and donors can contact their Better Business Bureau for information on local and regional charities," Taylor said.

The BBB Wise Giving Alliance offers the following tips for donors interested in making their contributions count this holiday season.

1. "DO A LITTLE "DETECTIVE WORK." Researching the charity beforehand can help avoid dollars being siphoned off by poorly managed charities in a period of greatest need. Visit give.org for giving tips and free access to detailed Alliance reports on national charities that specify which charities meet or do not meet the Alliance's comprehensive charity standards. During 2003, individuals visited give.org over 2 million times to view an Alliance national charity reports. (For information on local charities, go to bbb.org to contact the Better Business Bureau in your area.)

2. CONSIDER DONATING TOYS, FOOD OR OTHER ITEMS. Many community charities are seeking donations of food, toys, clothing or other items during the holiday season. Consider contacting a charity to find out what donated items it needs if your cash is tight this time of year. The latest edition of the BBB Wise Giving Guide quarterly magazine features a cover story on Food Donation Programs and includes a summary of the latest evaluation results of the Alliance's national charity evaluations in relation to its comprehensive standards. To receive a complimentary copy, write to: BBB Wise Giving Guide, 4200 Wilson Blvd., Suite 800, Arlington, VA, 22203.

3. DONATING YOUR CAR, BEFORE THE 2005 TAX RULE CHANGES. Upcoming 2005 changes in the tax rules for car donations will, in many cases, result in lower charitable deductions for such gifts. As a result, donating a car before the end of 2004 may present another alternative giving option. Be mindful, however, to check out the charity's activities and also find out how it will benefit from the donation of your car. In some cases, the charity may receive a flat amount ($100 per vehicle) or a small percentage of the re-sale of the car. For additional car donation tips go to www.give.org/tips/usedcar.asp.

4. VOLUNTEERING YOUR TIME. Volunteering your time can be personally rewarding and just as important to the charity as a cash contribution. Nevertheless, it is wise for potential volunteers to find out more about the charity before making a commitment. Volunteering need not involve directly assisting those in need (such as ladling the soup at the homeless shelter). Assisting the charity with office activities or other needed tasks can be just as helpful. While the value of your time is not deductible, some out-of-pocket expenses directly related to volunteering (such as transportation costs) might be deductible.

5. IS THE CHARITY REGISTERED TO SOLICIT? Whether the solicitation is by mail, phone, in-person, or through coin canisters, charities are usually required to file information with government agencies. About 40 states require charities to register with a state government agency (usually the state's office of the attorney general or the secretary of state.) You can contact these agencies for available information about the charity and to verify if the organization is appropriately registered. Although regulations vary from state to state, keep in mind that registration in and of itself does not mean the state "approves" or "endorses" the charity.

6. CAUSE-RELATED PROMOTIONS. During the holidays you will see advertisements announcing that the purchase of certain items in retail stores will benefit a specified cause. Such purchases present another option for helping charities during the holidays. One of the Alliance's charity standards recommends, however, that you look for a disclosure that indicates the actual or estimated amount of the purchase that will go to the specified charity. In most cases, this will be less than 10% of the price.

7. DOES THE CHARITY MEET ALLIANCE STANDARDS? The BBB Wise Giving Alliance's Standards for Charity Accountability go beyond what the law requires of charities and address issues such as charity finances, governance, charity effectiveness, fund raising, and donor privacy. Visit give.org to learn more about these criteria. If the soliciting organization is a national charity that is not already the subject of an Alliance report, encourage them to visit give.org and voluntarily participate in the Alliance's evaluation process. The Alliance does not charge charities for its evaluations and the resultant reports are free to the public.

A final suggestion: if you can't give this holiday season, make plans to do so next year. "Honest charities will welcome your donation next month, next year, or whenever you are able to contribute," Taylor advised.