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Charity Donations Could Cost More Than You Think

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Charity Donations Could Cost More Than You Think

by Kirstin Cole
NEW YORK (CBS) ― It's that time of the year -- when people open their hearts and wallets for those in need, and there's certainly no shortage of solicitations. But if you're not careful, your goodwill could cost you more than you banked on. Address labels, note pads, trinkets, a flood of freebies along with letters and phone calls from charities seem constant, and all come with the hope you'll make a donation.

New York resident Amanda Frank learned her grandmother-in-law, Mary Perry, who recently passed away, was one of those kind-hearted citizens who often made donations to various charities. From National Multiple Sclerosis to the National Foundation for the Blind, Perry donated to them all. On one day alone she wrote 10 different checks to 10 different organizations. "She just thought she was being charitable and helping which she was, but she was also being taken for a ride a little bit," Frank said.

Experts say the biggest mistake donors make is sending small contributions to many different charities, because those charities then actually turn around and sell the donor's name and information to other organizations.

Sandra Miniutti, Vice President of "Charity Navigator," says once that happens, the donor's mailbox will be inundated with requests for funding. She and other consumer advocates warn just because a non-profit sends you a free gift, does not mean you need reciprocate with a donation. "Make sure you give to a charity because you believe in their mission, they're well run. Give based on merit, not just because they ask," says Miniutti.

There is no legal requirement that prevents a charity from selling or trading someone's name, and it is very difficult to remove information from their mailing lists. However, you can register with the direct marketing association to opt-out of junk mail. But not all charities subscribe to the service.

If you do donate to a charity, enclose a note requesting that the organization not rent, sell or exchange your name with anyone else. Be sure to check the related links box on the right for important links on how to opt-out of junk mail and other related information.

(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)

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