NEWARK - In the past several months, charitable
donations and fund raising events have
increased significantly following the
earthquake in Pakistan, the tsunami and
Hurricanes Katrina and Rita, according
to Attorney General Peter C. Harvey and
Consumer Affairs Director Kimberly S.
Ricketts.
"New
Jerseyans have responded with their usual
compassion to recent devastating events
with many giving generously to relief
efforts or organizing fund raising events,"
Acting Governor Richard Codey said. "We
certainly don’t want to discourage
people from these activities, but there
are rules that govern how charitable events
must be organized.”
“We
want to encourage consumers to check it
out with Consumer Affairs first before
making any decisions on charitable donations
or events,” said Attorney General
Harvey. “Most people act with the
best of intentions but there are rules
that need to be followed and we should
all exercise caution as con artists often
see such disasters as an opportunity to
defraud others.”
The
New Jersey Division of Consumer Affairs’
Charities Registration Section enforces
New Jersey’s Charitable Registration
and Investigation Act and works to ensure
that organizations are operating lawfully.
Any organization that is accepting donations,
soliciting contributions, or conducting
any fund raising events in the State of
New Jersey must register with the Division
of Consumer Affairs, unless they are exempt
from the registration requirements. The
types of organizations and activities
covered by this law are broad and include
501c3s, groups conducting charitable appeals
and businesses donating partial sales
proceeds to a charity.
Additionally,
any individuals or groups planning to
host any games of chance, including raffles
such as a 50/50 or gift basket raffle
or a casino night are required to register
in advance with the Legalized Games of
Chance Control Commission. There are limitations
on the types of organizations that can
legally conduct games of chance. Organizers
are also required to obtain a license
from the municipality in which the raffle
will take place. To ensure compliance
with these laws, please contact the Legalized
Games of Chance Control Commission at
973-273-8000 and ask
about registration.
“Charitable
assistance is an important part of our
national identity and we encourage any
activities that enable New Jerseyans to
express their generosity and support for
those in need,” Director Ricketts
said. “But in order to protect individuals
who are making solicitations, as well
as those who are making donations, we
want all New Jerseyans to know that there
are certain rules about how these activities
must be conducted.”
All
charities that are registered with the
State, and are in compliance, are listed
at www.NJConsumerAffairs.com/charfrm.htm.
Consumers should check with Consumer Affairs
first before donating to or soliciting
on behalf of a charity. If you are thinking
about organizing an event, contact the
Charities unit directly at 973-504-6215.
“To
protect the charity and generosity of
citizens in every municipality and county
across the State who respond to those
in need, we ask for your assistance in
contacting us first to ensure that all
charitable efforts are conducted appropriately
and legally,” continued Director
Ricketts.
To
avoid becoming the victim of charities
fraud, Director Ricketts asks residents
to consider the following advice:
- Give
to charities you know and trust - never
give to a charity you know nothing about.
Ask for literature and read it. Ask
questions. Honest charities encourage
you to do so.
- Check
whether the organization is registered
with Consumer Affairs’ Charities
Registration Section or exempt from
the registration requirements. You may
confirm whether an organization is registered
or exempt by calling the unit at
973-504-6215. You may also
confirm registration online at www.NJConsumerAffairs.com/charfrm.htm
- Find
out how long the organization has been
in operation and ask to see its financial
reports. These reports, called 990s,
are available by calling Consumer Affairs’
Charities Section. They reveal how much
money the organization takes in each
year, how much it spends on the causes
it claims to represent and how much
it pays toward administrative, management
and professional fund-raising fees.
General financial information about
a registered charity is also available
at www.njconsumeraffairs.com/charfrm.htm
- Don’t
be fooled by a convincing name. A dishonest
charity will often have an impressive
name or one that closely resembles the
name of a respected, legitimate concern.
- Don’t
succumb to pressure. Don’t let
yourself be pressured into giving, and
don’t feel you have to contribute
on the spot. No legitimate organization
will expect you to contribute immediately,
even if you have given in the past.
- Ask
if the charity uses a professional fund
raiser and, if so, what percentage of
your contribution will actually go toward
the charitable purpose, such as a relief
effort, and how much will be used to
pay the fund raiser.
- Beware
of unsolicited and phony e-mail notices
that claim to be from a charity that
you are familiar with asking for your
credit card information. This scam is
called "phishing" and could
be used by thieves to commit identity
theft.