Nov 26, 2009 5:27 pm US/Pacific
Charities Get Gimmicky To Keep Donations Coming
SAN FRANCISCO (CBS 5) ―
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In the tough economy charities are offering giveaways and gimmicks to keep donations coming in.
CBS
More than half of all charities are reporting a drop in donations this year. The next few weeks will be crucial in their fundraising efforts since charities receive anywhere from one-third to one-half of their overall contributions.
Since the demand for dollars is so high, many charities are using gimmicks to get you to give. For example, the Coalition to Salute America's Heroes is sending prospective donors a dollar bill. The International Eye Foundation is mailing out checks for $2. The SPCA is sending fleecy gloves.
Charity Navigator, a website and non-profit organization, tracks how charities spend their money. President Ken Berger warns that these giveaway items cost charities money.
The trinkets or gifts can cost the charity between three or four dollars apiece. It's an expense that cuts into the amount that could be going to the charity's good works.
Another trend in solicitations is the "desperate plea". Berger said,
"They're telling donors they're really in trouble, they're telling donors that the economic downturn has really hammered them, sometimes questioning whether they're really going to be around tomorrow."
Charities are also using new techniques such as texting and social media to appeal to a new generation of givers. The Salvation Army is even processing debit and credit card donations right at their kettles.
Ken Berger recommends doing a little homework on his Web site --www.charitynavigator.org --- to find out just how much the organization is actually spending on its mission and how much goes to overhead and executive compensation.
Another Web site for checking out charities is www.bbb.org.
Experts say to think twice about giving to charities that spend more than 25 of its budget on fundraising and administration.
Who rates high on Charity Navigator's website? The San Francisco Food Bank gets its highest four star rating. It's a seal of approval that's important in these tough economic times.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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