Giving to charity often means giving up privacy
By Sandra Block
USA Today
More than 800,000 charities and nonprofit organizations operate in the United States. By the end of the holiday season, you probably will feel like you've heard from all of them.
When it comes to charitable solicitations, the more you give, the more you receive. Write a check to an organization that protects endangered sea turtles, and there's a good chance you'll hear from groups that protect whales, monk seals, manatees and short-nose sturgeons.
Many charities raise money by selling or renting names of contributors to like-minded organizations. Charities that buy the lists use them to reach out to new donors. Some charities say the solicitations are key to their continued survival.
Yet many Americans view the sale of their names and addresses as an invasion of privacy. A recent survey commissioned by the Better Business Bureau's Wise Giving Alliance found that 85 percent of adults believe charities shouldn't raise money by selling their personal information. Some 82 percent said charities should allow donors to block the sale of their personal information. Only 15 percent said such a policy would go too far in limiting charitable fund-raising.
Opting out
In response, the alliance plans to add a privacy provision to the standards it uses to evaluate charities. To comply, charities would have to withhold personal information if donors request it.
For example, a charity could include a check box on the card that donors return with their contributions, says Bennett Weiner, chief operating officer of the Wise Giving Alliance.
The standards are voluntary and won't become effective until next year. But if you're concerned about privacy, there are steps you can take now to cut down on unwanted solicitations:
Focus your giving on just a few organizations. Donating small amounts to dozens of charities will land your name on dozens of lists.
Once you've decided which charities to support, tell them you don't want your personal information exchanged or sold.
Some charities have added an opt-out form to their solicitations.
If you can't find one, enclose a note along with your contribution. The American Institute of Philanthropy, a charity watchdog organization, features a sample letter on its Web site, www.charitywatch.org.
Tell the charity that you'll stop contributing if your wishes aren't honored, says Daniel Borochoff, president of the AIP.
"That's a pretty strong incentive for them to stop selling or exchanging your name," he says.
Researching a charity
While opting out might reduce charitable solicitations, it won't eliminate them. And you may occasionally receive an unsolicited request from a charity that seems worthwhile. But before you succumb to pictures of sad-eyed puppies or short-nose sturgeons, research the organization. Many organizations have similar-sounding names, which can add to confusion. Where to look:
• Wise Giving Alliance, www.give.org. The alliance doesn't rate charities, but discloses whether an organization meets its standards. Its Web site also provides tips on charitable giving.
• GuideStar, www.guidestar.org. Offers financial information on more than 850,000 nonprofits.
GuideStar also sells more detailed reports for $59 per charity. The report includes charts and graphs summarizing the charity's financial performance, along with an analysis of how it compares to similar organizations.
If you're thinking of making a large donation, the reports can help you narrow your choices, says Suzanne Coffman, spokeswoman for GuideStar.
• Charity Navigator, www.charitynavigator.org. Rates more than 1,700 charities, using financial data to analyze a charity's health. Trent Stamp, executive director of Charity Navigator, says the site focuses on how efficiently charities use their money and whether they're continuing to grow.
"Our data is entirely number driven," he says. "We don't get into value judgments on how often the board should meet or whether you should have an annual report."
• American Institute of Philanthropy, www.charitywatch.org. Grades charities based on the percentage of contributions used for charity, vs. fund-raising and administration.
You can find a list of AIP's top-rated charities on its Web site. AIP also publishes a quarterly analysis of about 400 charities. A sample copy is available for $3.
Watchdog groups use different standards to evaluate charities, so ratings might differ. You might want to review them all to determine which suits your own philosophy of giving.
