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Giving back feels good.
But those warm and fuzzy feelings can evaporate in an instant if the charity you donate to isn’t on the up and up. There are several ways to ensure your money is going to a legitimate organization – and that it’s being used for worthwhile projects. We went to highly regarded Charity Navigator to learn how to avoid scams. Here are some of their tips.
- Ask: Are you a registered public 501(c)(3) organization and what is your Employee Identification Number? It’s a red flag if they don’t have this number. Double check their EIN for legitimacy on Charity Navigator.
- Be wary of charities with names similar to nationally known organizations. Taxpayers can find legitimate and qualified charities with the Tax Exempt Organization Search (TEOS) tool on IRS.gov.
- Look up the organization’s mission, goals and history of success. If a charity struggles to answer these questions, consider giving elsewhere.
- Seek out the charity’s website to validate their work. Make sure you can find the nonprofit’s EIN on their website or donation page. Also note: most nonprofits also have a .org website rather than a .com.