Small businesses across the country are routinely asked to support a variety of charitable organizations. The causes range from youth sports teams to health charities, from disaster relief appeals to requests from police and firefighter organizations. Most charities requesting gifts from businesses do so in a responsible manner, but there are those who seek to take advantage of their generosity. Since most small businesses will not have specialized staff or resources to manage donation requests, they can sometimes be more vulnerable than larger companies.

To help small businesses avoid questionable contribution circumstances, BBB Wise Giving Alliance offers the following advice.

Check out charities that seek to solicit the public on business property.  For a variety of reasons, small business customers and clients will probably assume that any charity that is permitted to solicit on their property will have been verified by them. This is all the more motivation not to let them down. A small business should visit BBB.org or Give.org to see if they have a report that indicates the charity meets the 20 BBB Standards for Charity Accountability (i.e., a BBB Accredited Charity.)

Verify the charity’s registration with government agencies.  About 40 of the 50 states in the United States require charities to register, usually with the office of the attorney general or secretary of state. In Canada, businesses can check with the Canada Revenue Agency. Keep in mind that registration does not mean the government agency endorses, approves, or recommends the charity. It does, however, usually signal that the organization has at least completed the necessary paperwork, paid applicable fees, and has submitted necessary financial information to the applicable agency.

Take steps to manage requests to place donated clothing bins.  If a business is approached about placing a metal clothing donation box near their parking lot or other publicly accessible area, make sure that the name of the charity is clearly identified on the bin along with a statement about how to get additional information, such as a phone number and/or website. The small business owner should ask the charity how the clothing donations will be used. One cannot assume they will be given to the needy. Some donations may be sold to thrift stores, turned into rag bond paper, or a combination of these possibilities. One should also ask how often the bin will be emptied and who can be contacted if the bin is not maintained in an orderly manner. 

Be cautious with appeals from police and firefighter groups. A small business should not assume that the words “police” or “firefighter” in an organization’s name means the local police force or fire department is involved. Also, watch out for a solicitor’s suggestion (it’s illegal) that your donation will give you “special treatment” from police or firefighters. For more tips on these groups, visit this link.

Small businesses can focus their support. As a small business may not be able to support all the charities that ask for help, it can consider focusing on the company’s giving. For example, it might select a theme such as homeless shelters or a favored environmental charity, and direct its donation activities to those selected cause(s). This pro-active decision can help build special relationships with charities that lead to larger community recognition for this charitable activity.

Heart of Giving Podcast

This week’s Heart of Giving Podcast features Kimberly Callinan, President and CEO of Compassion & Choices (a BBB Accredited Charity.) She challenges listeners to consider how facing death head-on can profoundly impact the way we live, while also exploring the legal and ethical landscape of end-of-life choices in America.

Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Brother’s Brother Foundation
• Ducks Unlimited
• Operation Smile

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.