|
Know the Charity Before You Give |
| Brought
to you by the State of Washington, Office of the Secretary of
State |
| |
| The most important thing
to remember is that you should find out as much as you can about
the |
| soliciting charity
before you make a contribution. If you are
asked to make a charitable donation -- |
| either in person, by
phone, or by mail -- ask questions! |
| |
| * Is the request coming from a charity or a
commercial fundraiser? |
| * Is the charity or commercial fundraiser
registered with the Secretary of State as required by law? |
| * What is the name, address, and telephone
number of the organization asking for the donation? |
| * Exactly how will the donation be used? |
| * What percentage of the contribution will
actually be spent on the charitable purpose of the |
| organization? (In some
instances, less than 20 percent of the money collected by a
commercial |
| fundraiser goes to the client
charity). |
| |
| Q:
What is a "Charitable Organization?" |
| |
| A: A Charitable Organization is any
entity that solicits or collects contributions from the public, |
| where the contribution
is, or is said to be, used to support a charitable activity.
Charitable |
| activity includes, but
is not limited to, educational, recreational, social, patriotic,
legal |
| defense, benevolent, or
health causes. |
| |
| Q: Who must register? |
| |
| A: The Charitable Solicitations Act
applies to almost every person or entity that conducts |
| charitable
solicitations in the state of Washington. In most cases,
involvement in this type |
| of activity generally
requires registration with the state. This includes
organizations located |
| outside the state of
Washington soliciting Washington State residents. "Charitable
Organization" |
| is broadly defined. If
the entity conducts a charitable solicitation, it is considered
a "Charitable |
| Organization" for
purposes of this statute, even if you do not think of the entity
as a charity. |
| |
| Q: Are all Charities required to
register with the Office of the Secretary of State? |
| |
| A: While most Charities must
register, there are some entities exempt from the state
registration |
| requirements. The
nature of the charity, the type of solicitation, and the amount
raised from |
| solicitations are
distinguishing features of the exemptions. |
| |
|
In Washington State, most organizations that are (1) strictly
volunteer run and raising less than |
|
$25,000 from the public; (2) Political organizations; (3)
Fundraising on behalf of specific
|
|
individuals; or (4) Churches or their integrated auxiliaries.
Organizations that are exempt from |
|
the registration requirements are encouraged to submit an
"Optional Statement for an Exempt |
|
Organization" with the Charities Program. The application
is not required, but does allow the |
| Office of the Secretary of State to respond to
customer inquiries. For more information regarding |
| qualifying for exemption from registration, please
contact the Charities Program directly. |
| |
| Q: Do all states require a
registration? |
| |
| A: Most states have some type of
registration or filing process. It is necessary for
organizations |
| contemplating
fundraising activities in other states to research the
individual state reporting |
| requirements to ensure
compliance prior to soliciting. |
| |
| Q: Why is registration required? |
| |
| A: Both the benefiting charities as
well as the independent entities paid to solicit funds must, in |
| most cases, provide
financial and other information about fundraising and their
activities. The |
| information is
available to the public so that the consumer can learn more
about how their |
| donation will be spent
by the soliciting organization, before making a contribution. |
| |
| Registration with the
Office of the Secretary of State should not be represented as an |
| endorsement and will
not prevent deception. |
| |
| Q: What is a Commercial Fundraiser
or Professional Fundraiser? |
| |
| A: A commercial fundraiser is an
independent entity that in exchange for compensation, conducts |
| fundraising activities
on behalf of Charities. It is not unusual for commercial
fundraisers to be |
| retained and paid for
their fundraising services by multiple Charitable Organizations. |
| |
| Verify the Information |
| |
| Q: I have just been solicited by a
Charity. How can I tell if it is legitimate? |
| |
| A: The Office of the Secretary of
State cannot address an organization's "legitimacy." We will be |
| able to confirm if an
organization has met the state registration requirements. If the
organization |
| has properly
registered, we will be able to supply general and financial
information as provided |
| in the organization's
registration documents. |
| |
| The information
available from our office, combined with other available
resources, is intended |
|
to
assist the public in making informed decisions. |
| |
| Q: How can I check out a Charity? |
| |
|
A: You may contact
the Office of the Secretary of State's Charities Program by
calling our toll-free |
| toll-free number
1-800-332-4483 (local or out-of-state callers may dial
360-725-0378). |
| |
| You may also conduct an
online search. |
| |
|
Other
resources include your local Better Business Bureau, including
several Internet sites that |
| have been established
to aid in the research of Charitable Organizations. |
| |
| Q: How can I check out a
commercial fundraiser? |
| |
| A: Commercial Fundraisers are also
required to register annually with the Office of the Secretary
of |
| State Charities
Program. Consumers may contact the Charities Program by calling
our toll-free |
| number 1-800-332-4483
(local or out-of-state callers may dial 360-725-0378). General
and |
| financial information
is available and will assist potential donors in understanding
how their |
| contribution will be
used. |
| |
| The Charities Program also publishes the "Commercial
Fundraiser Activity Report" each year near the |
| holiday season, when charitable solicitations are at
their peak. The report provides valuable information |
| regarding how funds are distributed by commercial
fundraisers to their charity clients. Read the
report. |
| |
| Q: What percentage of
funds actually spent on the organization’s charitable purpose is
considered an |
| “acceptable” percentage? |
| |
| A: The Washington State Charitable
Solicitations Act does not provide an "acceptable" or minimal |
| percentage to be
expended towards an organization's program services. Anyone
involved in making |
| charitable
contributions should predetermine their own "minimum percentage
standard" and support |
| those organizations. |
| |
| Other Tips and Cautions |
| Before you decide to donate, request
printed materials about the charity. |
| |
| Contact the
beneficiaries of the charitable funds to determine if they are
aware of the solicitation and |
|
have authorized use of their name. Ask how the donations are
used. |
| |
| Never give your credit
card number to a telephone solicitor and don't pay by cash. Pay
by check |
| and make
it payable to the charity, not the fundraiser. |
| |
| Don't be fooled by a
name. Some organizations use sympathetic sounding names, or
names that |
| closely resemble those of respected, well-established charities. |
| |
| Don't give in to
high-pressure "hardball" solicitations that demand an instant
commitment. If the |
| charity is legitimate, it should be willing to give you time to make up
your mind. |
| |
| Be wary of charities that offer to send a
courier to collect your money immediately. |
| If a solicitor comes to your door, ask for
identification. |
| |
| Call the Secretary of
State's Charities Information Hotline (toll-free in Washington
State 1-800- |
| 332-GIVE) to confirm if
the charity or fundraiser is registered and to get further
information about |
| the
organization's financial and charitable activities. |
