As part of its “Check Your Charity” initiative, the Office of the Mississippi Secretary of State has published its “2023 Report on Charitable Organizations” accessible on its web site (www.sos.ms.gov).
The report covers several hundred charitable organizations to which Mississippian donate, providing contact information and pertinent information to evaluate each organization as a potential recipient of donations, including total revenues and expenses, fundraising expenses and charitable purpose and non-charitable purpose expenses.
“Disclosure of charitable revenue and spending exposes unscrupulous groups who might prey upon the generosity of our citizens by lining their pockets under the guise of selfless motives,” says Mississippi Secretary of State Michael Watson. “Additionally, transparency in financial reporting promotes the good work of credible organizations who are responsible stewards of your time and contributions. Mississippians are known for their generosity, especially during the holiday season, but it’s important to remember the wisest giver is an informed giver. Through our annual Report on Charitable Organizations, we encourage all citizens to check the validity of a charity or organization before making a donation.”
Although new organization face high administrative expenses due to start-up costs, and large gifts or donor restrictions on the use of contributed funds can skew an organization’s apparent management of funds in either a favorable or unfavorable light, Watson notes that the Council of Better Business Bureaus recommends at least sixty-five percent of a charity’s total revenue be spent on program activities directly related to the organization’s purposes. Fundraising and administrative costs by an established organization should never exceed thirty-five percent of related contributions, the Council advises.
Watson offers these tips to Mississippians for making decisions about charitable donations:
Check the charity. Use the “Charity Search” portal on the Secretary of State’s website to verify the charity is registered with the State. Ask questions before giving, and be sure to ask for answers in writing. Legitimate charities always welcome inquiries.
Resist pressure tactics. Donation decisions do not have to be made immediately. Take time to evaluate the information provided by the charity.
Watch for similar names. Many charities have similar names. Often, scam artists intentionally use names resembling those of respected groups. Take a few extra minutes to research the charity online so you can be sure your donation goes to the right place.
Be wary of telephone calls. Always get the name of the person calling and the exact name and spelling of the charity. Ask if the caller is a professional fundraiser, how much of donations actually go to the charity if so.
Verify mail solicitations. Be wary of mail containing novelty items you can keep if you contribute. Federal law states that unless you ordered the item, you can keep it without contributing.
Always get receipts. Receipts are vital for tax deductions and provide a tracking mechanism for donations. To be safe, always donate directly to the charity by credit card or check.
For more information, contact the Charities Division of the Office of the Mississippi Secretary of State at 601-359-1599 or by email (charities.customerservice@sos.ms.gov).