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agriculture & industry • community • faith & charities Education • down through the years • family & home business & health • life • neighbors • people A PUBLICATION OF THE ALBERT LEA TRIBUNE • FEBRUARY 2014
Your charity dollars at work
Community Chest
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tips for giving wisely
Donating locally is as important as shopping locally By Sarah Stultz
sarah.stultz@albertleatribune.com
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on the phone. In the mail. In person. Or online. The opportunities to give to charities are at every turn. How should people choose where to give and how can they ensure their donation will support a local cause? Ann Austin, executive director of the United Way of Freeborn County, said people may have many motivations for donating to a charity. For some people, Austin said, they have given to charities in the past simply because they have felt good about doing it. “They feel like they want to invest back in the community,” she said. Lance Skov, with Albert Lea accounting firm Hill, Larson, Walth & Benda, said people should donate to groups they are passionate about and have a connection with. Austin echoed his sentiments. “I think it’s important to participate in the organizations that have impacted you in your life,” she said. People, she said, should research nonprofits and even consider volunteering at them before giving monetarily. Albert Lean Jan Jerdee said she likes her money to stay as local as possible, so she feels more comfortable donating to an organization she knows well. “You like to know how your money is getting used,” she said. “Otherwise, I could just drive down the road and throw my money out the window and
Charities have an obligation to provide detailed information to interested donors. Never give to a charity without finding out about it first.
2. Find out where the money goes.
hope that a kid who needs it finds it.” She said a majority of the nonprofits she gives to have impacted her or someone she knows. Austin said people can look at how much of an organization’s donations support administrative costs versus program costs. They can also look at how the nonprofit raises its money. When someone donates to the United Way, for example, 87 percent goes to support programs, while 5 percent goes to management, 6 percent goes to fundraising, 1 percent is designated to other counties and 1 percent goes to the United Way Worldwide, she said. United Way leaders have from Sept. 1 through Dec. 31 each year to collect funds. They do so through a workplace campaign, mailers and community outreach and fundraisers. “We’re looking into new ways of engaging people, especially the younger audience,” Austin said. The organization has an agreement with its partner agencies — what is called a blackout period — where the agencies are asked not to fundraise on their own from Sept. 1 through Nov. 15. The idea behind the blackout period, Austin said, is to allow the community to focus its donation efforts on the United Way. The organization used to be known in several areas across the country as Community Chest because it acts as an agent to collect money from local businesses and workers and then
Advance token to nearest nonprofit Where does your United Way dollar go? 1 percent is sent to United Way Worldwide, which goes toward support, conferences, other services 1 percent is designated to other counties 6 percent goes toward fundraising and time spent reaching out to businesses 5 percent pays for management 87 percent supports United Way of Freeborn County partner agencies
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The total budget of the Albert Lea Salvation Army is about $1.1 million, with about 13 percent of that going to support administration and fundraising. Capt. Jim Brickson said the remainder goes to support the food pantry, community meals five days a week, rental assistance, heating and electrical assistance, emergency assistance, transportation, lodging and Christmas and Thanksgiving meals.
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Holiday fund matures; receive army assistance
1. Know your charity.
distributes those funds to community projects. After the annual fundraising campaign is complete, a committee of community members allocates the United Way donations. This year, 16 nonprofits, focusing on the areas of education, income and health will receive funding. Austin said how much is given to the agencies depends each year on their request for funding, combined with the community’s needs and how much was raised. One of those agencies is the Albert Lea Salvation Army, which in 2014 will receive $65,000 from the United Way. Salvation Army Capt. Jim Brickson said his organization has a total budget this year of about $1.1 million. Of that, about 13 percent goes toward administration. What do charities do when there are gaps in funding? Brickson said sometimes he has to be creative in how he approaches his programs because the need for the services remains despite the gaps. He said the Salvation Army has benefited greatly through volunteers. “I don’t think we always have to be standing there with our hands out saying, ‘Can you fill the bucket again?’” Austin said at some point, though, the community needs to reassess what its nonprofits are doing in the community. “There are so many ways we can solve problems collectively without having to raise funds,” she said.
Do not pass go; Go directly to aid United way agencies
Find out how much of the donation goes for general administration and fundraising versus how much is left for the program services you want to support.
3. Do not respond to pressure.
Do not be pressured into contributing on the spot. Request additional information in writing if not familiar with a charity.
4. Keep records of your donations.
Do not give credit card numbers to a telephone solicitor or through an unfamiliar website. Obtain a receipt or printed copy of the donation for tax purposes. For all tax-deductible contributions of $250 or more, the Internal Revenue Service requires a receipt from the charity.
5. Ask if the charity is registered by federal, state or local authorities.
Nearly all non-church charities with more than $25,000 per year in income must file financial information annually with the IRS. But remember, registration in itself is not a stamp of government approval or an endorsement of the charity.
6. Beware of charities offering gifts.
Direct mail solicitations are often accompanied by greeting cards, address stickers, calendars or key rings. Charities do this because it can increase donations, but do not feel you have to make a contribution to keep the items. It is against the law for a charity to demand payment for any unordered merchandise. — Information from www.charitywatch.org
How the United Way of Freeborn County allocated funds in 2014: • Adult Basic Education: $12,000 • Freeborn-Mower chapter of the American Red Cross: $10,000 • Group Support Services: $35,000 • The Children’s Center: $52,000 • The Arc of Freeborn County: $30,000 • The Salvation Army: $65,000 • The Albert Lea Family Y: $30,000 • Healthy Families: $20,000 • Crime Victims Crisis Center: $18,000 • Senior Resources of Freeborn County: $57,600 • Parenting Resource Center: $20,000 • Cedar Valley Services: $40,000 • Catholic Charities: $5,000 • Semcac Community Action: $8,000 • Community Technologies & Services: $14,000 • Crisis Response Team: $1,500 Total: $418,100