’Tis the season for charities to set up shop, ring their bells and place out donation bins for local and international causes in need of your generous donations.
But some charitable and non-profit organizations are not all they appear to be.
While the Competition Act, through the Competition Bureau of Canada, provides criminal and civil regimes to address false or misleading representations — some charities walk the fine line of what is illegal versus what is unethical.
“We always encourage consumers to make a plan for their charitable giving, at any time of year,” said Camie Leard, vice president of marketing and communications for the Better Business Bureau of Southern Alberta and the Eastern Kootenay Region.
“That way you’re not pressured into or tempted by something that may not be on the up and up. Know how much you can afford and plan the organizations you wish to support ahead of time.”
Leard said that Revenue Canada gives a number to all licensed charities, which are also available for viewing online.
Asking for history, references and a break down (how much from every dollar goes toward the cause at hand versus administrative costs) are also considerations.
Corp. Troy Savinkoff with the Cochrane RCMP said it’s key for those in the spirit of giving to take measures of due diligence — ensure all persons representing the said charity have some type of identification; do an online search to check for accreditation; and see that the charity or non-profit organization is able to issue a tax receipt.
Savinkoff said the RCMP frequently received complaints about charitable canvassers (door-to-door) who seem suspicious or even behave aggressively.
The Competition Bureau has also released an advisory on donation bins:
Clothing donation bins, often located in parking areas or near public buildings, encourage donations by featuring the names and logos of various charities. However, some do not clearly indicate that the bins are owned and operated by a for-profit business. Donated clothing is then sold by the for-profit business which, in turn, provides only a small percentage of the profit to the charities featured on the bin.
The advisory continues on to offer such tips as verifying donation bins with a charity’s website before donating; recognizing which bins are being operated by for-profit businesses; and recognizing that bins promoting ‘in support of’ or ‘a proud sponsor of’ certain charities may be a red flag.
