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Avoiding Fraud, Waste to Make Donation Dollars Count

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Tuesday, December 10, 2013   

SEATTLE – If you gave money to a charity and less than half actually got there, you might be concerned about where the rest went. But that's what happened last year to Washingtonians' money that was donated through professional fund-raisers.

Jean Mathisen, who directs AARP's Fraud Fighter Call Center, says one way to deflect those pitches is to create your own giving plan with specific charities and amounts. It requires a little homework, which she says can be done with information found on the Washington Secretary of State's website.

"For commercial fund-raisers, what percentage goes to the charity?” she asks. “What percent do they keep to line their own pockets? With individual charities, you can find out how much they spend on services versus how much on administrative overhead. I think both of those are very important."

Giving directly to a charity on your preferred list is always a better bet than answering a third-party solicitation by phone or email, she says. If a fund-raiser's pitch does sound worthwhile, ask that written information be sent for you to consider before donating.

The Secretary of State and Attorney General have released the latest fund-raising results for more than 100 commercial solicitors working in Washington. Many keep the lion's share of the money – last year, about $280 million of the $522 million they collected.

Mathisen says it confirms that just because fundraisers are registered doesn't mean their motives are honorable.

"It's not as if there's a minimum amount that they are required to give to the cause,” she explains. “And especially in these hard economic times, when goodhearted people want to make a difference and alleviate some of the suffering, I think it's critical that we make certain that our dollars are well spent."

In addition to professional fund-raisers, there are charitable scammers at work. This time of year, Mathisen says many of the bogus phone solicitors ask for donations for so-called badge charities – claiming to represent police, firefighters or veterans.

The AARP Fraud Fighter Call Center also makes calls, to warn people about scams.



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