What you need to know about charitable organizations

At this time of year, we as consumers are constantly bombarded with appeals for donations. We are solicited for donations via our churches, our employers, the mail, the internet, the telephone, and in person at public places such as the mall and the grocery store or sometimes even through door-to-door solicitations.

How do you know if a charity is reputable, if the money goes where it is supposed to or if you are allowed to include your donation on your tax return?

Here are some things to consider when giving this holiday season. First, charitable organizations must follow certain rules when soliciting donations. In general charitable organizations must register with the Ohio Attorney General's Office and submit detailed financial information to the Ohio Attorney General's Office to ensure how the organization receives and spends money is legitimate and accountable.

Further, if an organization has received tax-exempt status from the Internal Revenue Service through what is commonly known as 501(c)(3) status, the organization also must follow certain procedures and protocols including internal audits, again, to ensure financial accountability and integrity.

As a consumer the bottom line is to be informed about all these issues when giving financial donations to those soliciting your hard-earned money. There are many resources available to help you determine if an organization is reputable.

You can start by reviewing the information on charitable organizations on the Ohio Attorney General's website at charitable.ohioago.gov/Research-Charities.

The Better Business Bureau's Wise Giving Guide also lists national charities and a report on each, available at give.org/national-charity-reviews. The BBB's website also provides information and tips for donors when contemplating gifts to charities. The BBB’s Tips for Donors link is at www.give.org/tips-for-donors.

As to the issue of whether an individual donation is tax deductible, the general rule is the donation must be voluntarily made and cannot provide a material benefit to the donor, meaning you cannot receive something in exchange for your donation, unless the item or benefit you receive is lesser in value than the amount of your donation. The tax deductibility of the donation also may depend on the type of organization you donate to. As always, check with your tax professional about any such matters.

In conclusion it is part of the American tradition to give generously to those less fortunate at this time of year. Just make sure you verify your money is going to a reputable and responsible organization. Merry Christmas and Happy New Year.

Monica L. Miyashita is an attorney-at-law and can be emailed at kensingtonlawyer@gmail.com. Be advised the information contained herein is not a substitute for individual legal advice.