HOUSTON—
Tis the season to give right? But how do you know your money is going to a good cause? Or the charity you are donating to is actually putting that money to good use?There is no real charity watchdog. There is no state agency that makes sure charities are on the straight and narrow path. So it is up to you to know where your money is going, before you give.
It's a usual day at the Houston Food Bank. Volunteers are making sure the donations are worthy for those in need.
In this economy, the food bank has seen a dramatic need for its services. Luckily donations are good this time of year. But even though this is a charity, the food bank's president says don't make donations blindly this holiday season.
"The really good charities are very clear as to what they are going to accomplish with your invested dollars and how they are going to be good stewards of it," said Houston Food Bank president Brian Greene.
Greene says too often, people have too low of standards for charitable giving. Just because an organization supports a cause you are passionate about, and it seems honest, doesn't mean it's a good place to donate part of your paycheck. He says think of it like an investment.
"You wouldn't invest in a company just because it is an honest company, you want to know what exactly they are going to do with your investment and what type of return they're going to yield," Greene told us.
This season, the Houston Better Business Bureau is warning consumers to be on the lookout for charities that look or sound like a well known charity.
"Sometimes the name may be just a little bit off from the well known organization and that can easily trick someone who doesn't know the actual charity's name," said Leah Napoliello with the Houston BBB.
If you are thinking about donating money, the BBB says:
- Think about giving later - never feel pressured to give on the spot.
- Don't accept vague claims - look for a disclosure that indicates where the money is actually going.
- And unordered merchandise is free - if a charity sends you greeting cards for example...you are not obligated to make a donation.
And the best advice, if it doesn't feel right, don't give.
"If they're being very emotional and tugging at your heart strings, but don't really have any facts to back that up, then don't give your money," advised Napoliello.
The good news is that there have been no reports of fake charities this year. The other good news is that there are places you can go to research charities online.
Here is where to go:
- Houston BBB
- GuideStar.org
