New Charities Report Published
Generous Mississippians Need to Give Wisely After Katrina
Secretary of State Eric Clark today announced the publication of the eighth annual comprehensive financial report on charities operating in Mississippi.
“Mississippians are the most generous people in the country,” Clark said. “More than ever, we want to give our citizens the facts they need to give wisely.”
Copies of the report are available from the Secretary of State's Office be calling 601-359-6344 or 800-256-3494. There is no charge for single copies to individuals, Clark said. The complete report is available on the Secretary of State's website at www.sos.state.ms.us.
Hurricane Katrina has made it more important than ever for donors to have confidence in the charities they support, Clark said.
“All of us need to give in support of our fellow Mississippians,” Clark said. “Give to your church, give to your neighbors, give to charities you know and trust. Be careful if you are asked to donate to a group you aren’t familiar with. And call the Secretary of State’s Office if you have any questions or complaints.”
Clark’s office reports that 40 new charities have registered since the Hurricane which say they are collecting money for Katrina relief. 12 existing charities have expanded their mission to include Katrina relief. Of those, 19 are Mississippi-based. The Secretary of State’s Office has taken enforcement action against four unregistered charities that were soliciting contributions and did not respond to official inquiries.
In September, the American Red Cross asked the FBI to investigate at least 15 fake Web sites that are designed to look like legitimate Red Cross appeals for donations to Hurricane Katrina relief efforts.
Mississippi ranks #1 in the nation on the “Generosity Index” published by The Catalogue for Philanthropy. The ranking indicates Mississippians give a greater percentage of their money to church and charity than the citizens of any other state.
“Mississippians practice Southern hospitality and take seriously the Biblical injunction to love thy neighbor as thyself,” Clark said. “This ranking proves that.”
In addition to disclosing money raised and spent, the report provides percentage breakdowns to help measure how efficiently a charity uses its donations. This is particularly important since, in some cases, an inefficient charity may spend more money on overhead and fundraising (such as professional telephone solicitors) than on actual charitable purposes.
The annual Report on Charitable Organizations in Mississippi details the financial records of all charities registered with the Secretary of State's Office as required by law. There is a special section on charities sponsoring bingo. All charities soliciting contributions in Mississippi must be registered unless specifically exempted by law, such as churches and educational institutions.
The report also offers guidelines to begin to measure a charity’s effectiveness. The Better Business Bureau Wise Giving Alliance suggests that a charity should spend at least 65 percent of its total expenses on charitable activities and no more than 35 percent of related contributions on administration and fund raising. Charities should also make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles.
The new report is not intended as an endorsement or condemnation of any charity, Clark said, but rather as a source of information for potential donors. The percentage of revenue spent on charitable purposes should not be used as the sole basis for “rating” or “grading” charities. The type of accounting methods used, the age and size of the organization, the type of programs offered, and the way in which funds are raised may affect how well a charity serves others. It is also important to note that reasonable administrative and fundraising costs are essential for a charity to perform its mission.
“Mississippians having questions about a particular charity should call our office,” Clark said. “We’ve also provided the phone numbers of every charity providing that information to us in the report so citizens can call the charity directly and ask questions.”
Tips on Giving:
- Do not give cash; always make contributions by check and make your check payable to the charity, not to the individual collecting the donation.
- Keep records of your donations (receipts, canceled checks, and bank statements) so you can document your charitable giving at tax time.
- Don't be fooled by names that look impressive or that closely resemble the name of a well-known organization.
- Check out the organization with the Secretary of State’s Office and with your Better Business Bureau.
- Beware of appeals that bring tears to your eyes but tell you nothing of the charity or what it's doing about the problem it describes so well.
- Mail appeals should not be disguised as bills or invoices. It is illegal to mail a bill, invoice, or statement of account due that is in fact an appeal for funds, unless it bears a clear and noticeable disclaimer stating that it is an appeal and that you are under no obligation to pay unless you accept the offer.
- Ask if your contribution is tax deductible.
- Ask if the charity is registered with the Secretary of State’s Office. However, bear in mind that registration in and of itself does not endorse the charity.
- Don't succumb to pressure to give money on the spot or allow a "runner" to pick up a contribution; the charity that needs your money today will welcome it just as much tomorrow.
- Watch out for statements such as “all proceeds will go to the charity.” This can mean that the money left after expenses, such as the cost of written materials and fund raising efforts, will go to the charity. These expenses can make a big difference, so check carefully.
- Call the Secretary of State’s Office if a fundraiser uses pressure tactics such as intimidation, threats, or repeated and harassing calls or visits.
- Other resources:
www.give.org <http://www.give.org>
www.guidestar.org <http://www.guidestar.org>
www.mississippirecovery.com <http://www.mississippirecovery.com>
