When it comes to a worthy cause, Hoosiers are often willing to lend a hand. Most charitable organizations are legitimate and use donations wisely. However, there are some unscrupulous organizations that attempt to take advantage of this goodwill. Before making a contribution to a charity, especially a national charity, you should consider contacting independent organizations like BBB Wise Giving Alliance, American Institute of Philanthropy, Charity Navigator, or GuideStar.
Guidelines to Remember
- Don’t be pressured into making an immediate contribution.
- Ask for written information on the charitable orgnization, including the charity's name, address, and telephone number. A charity's purpose and how your donation will be used.
- You have the right to cancel a pledge for money at any time prior to making the contribution.
- Be careful about solicitors who use ‘Police,’ ‘Trooper,’ or ‘Firefighter’ in their name. Before contributing, call your local police or fire department to determine whether they have authorized a solicitation on their behalf.
- Beware of any solicitor who wants to send a courier to pick up your contribution. Under Indiana law, a contribution cannot be collected in person or by means of a courier unless:
- The solicitation is made in person and the collection is made at the time of the solicitation, OR
- The contributor has agreed to purchase items in connection with the solicitation and the collection is made at the time of delivery of the items.
- Don’t assume solicitations on crowdfunding sites are legitimate. It might be impossible for you to know if the cause is real and if the money actually gets to the intended recipient. Even if posts have been shared on social media or liked by your friends, don’t assume that the fundraiser is legitimate or that the hyperlinks are accurate. Do your own research. Call your friends or contact them offline to ask them about the post they shared.
- Any concerns that a campaign is not legitimate can be reported to the Indiana Attorney General's Office.
What to Know About Paid Fundraisers
The Attorney General's Office enforces the Professional Fundraiser Consultant and Solicitor Registration Act. This Act requires all professional fundraiser consultants and solicitors to register with the Attorney General's Office prior to beginning a fundraising campaign. A professional solicitor solicits contributions for, or on behalf of, a charitable organization. A professional fundraiser consultant is hired to plan, manage, advise, or act as a consultant in connection with soliciting contributions for, or on behalf of, a charitable organization. Unlike a professional solicitor, the professional fundraiser consultant does not actually solicit contributions.
*A charitable organization that solicits on its own behalf does not have to register with the Attorney General's Office.
Professional Solicitors
Many charitable organizations use professional solicitors to raise money on their behalf. The fact that a charity uses a paid solicitor does not mean you should not contribute to the charity. However, it is something for you to take into account when you are considering making a donation.
Professional solicitors usually either keep a percentage of the money they collect on behalf of the charity or receive a set amount of money from the charity. In many cases, the percentage of the total gross amount of money the charitable organization keeps is low.
Before engaging in a fundraising solicitation campaign with a charity, Indiana law requires professional solicitors to provide the Attorney General's Office with information about the fundraising campaign, including the percentage of the gross contributions or revenue the charitable organization will receive. Indiana law also requires professional solicitors to disclose the following information to a consumer at the time of the solicitation and before the consumer agrees to make a contribution:
- The name and, upon request, the address of the charitable organization that is being represented;
- The fact the person soliciting the contribution is, or is employed by, a professional solicitor, and the fact the professional solicitor is compensated;
- The full name of the professional solicitor and, upon request, the telephone number the person being solicited can call to confirm the information provided; and
- The charitable purpose for which the funds are being raised.
- If a professional solicitor solicits in writing or in person, the disclosures required by (1) and (2) shall be in writing. If a solicitor solicits by telephone, the disclosures required by (1) and (2) shall be made verbally. Additionally, any written confirmation the professional solicitor mails to consumers must also contain the disclosures required by (1) and (2).
- Anytime you are solicited for a donation, ask the caller if they are working for a paid solicitor. If the caller is working for a solicitor, tell the caller you want to know the percentage of gross revenue the charity will retain after the professional solicitor has been paid and all other expenses of the fundraising campaign have been paid.