What to do when a charity calls – tips for donors, supporters and those considering volunteering for a charity
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The Charity Commission has registered more than 23,000 charities, who provide a wide range of services, support and assistance to further their charitable purposes.
Registered charities must continue to update the Commission with information about themselves and file Annual Returns to maintain their registered charity status. Information from and about charities is available to the public on our searchable “live” database – the Charities Register.
Anyone being asked to volunteer or donate to a charity, might like to keep the following helpful tips in mind, and use the information on the Register before making important decisions about whether to support a particular charity:
- Find out who's asking
Many phone calls or on-street collectors requesting charitable donations represent profit-making agencies who keep a portion of your donation for themselves or charge fees for their fundraising services. Find out if the person with whom you are speaking works for a telemarketing or fundraising company, or whether they are a volunteer or employee of the charity itself. If they belong to a profit-making agency, you may also like to ask whether they are a member of the Fundraising Institute of New Zealand, and comply with its Codes of Ethics and Practice.
- Ask where your donation goes
Professional, profit-making telemarketers and fundraising agencies negotiate their fees before undertaking any work, and know exactly how much of every dollar raised goes to the charity and how much they charge for their services. You may like to ask the person requesting your donation to tell you how much of your donation will actually end up with the charity. If they are unwilling to provide this information, you may wish to consider carefully whether you wish to donate. You can also ask whether the charity they are collecting for is registered with the Charities Commission, and ask for its registration number. By law, they must tell you this.
- Do some research
We suggest that if approached for a donation, or if you want to choose a charity to donate to, that you take a look at the Charities Register – firstly to see if the charity is registered, and if it is, to look at the financial and other information it has provided to the Commission. You can search the Register online at www.charities.govt.nz, or call our free information line 0508 CHARITIES to look up information for you. Registration is voluntary though, so although the Commission has now registered more than 23,000 charities, all of whom have proven they have a genuinely charitable purpose, not all have chosen to apply. Remember too, that charities can present their financial accounts in any way or format they wish. The Charities Act does not require any particular format or standard so we suggest you read the charity’s Financial Performance and their Financial Position statements to get a clearer picture.
Other tips
If you donate directly to a charity, you can be sure that it will receive 100% of your donation.
If the charity is registered with the Charities Commission, you can be sure that its rules and application have been scrutinised to be sure it meets the Charities Act’s criteria, and that it must file an Annual Return with the Commission.
Never give out credit card, bank account, or other personal information over the phone.
If a collector calls at your home, you can ask them for identification, and whether the charity they are collecting for is registered with the Charities Commission. If it is, you can request the charity’s registration number.
Be aware of "sound alike" organisations that have names similar to well-known charities.
Remember that you can end a phone call or on-street conversation with a collector whenever you wish. You should never feel coerced into giving.