When Charity Isn’t So Sweet : Latest controversy serves as a reminder of risk with phone solicitations

These can be hard times for charities. The holiday season is near, and though the need is especially great in a recession, people’s resources and their will to give are tested severely in a period of economic hardship. United Way, for one, can hope only that its current national campaign does as well as last year’s.

As if the Scrooge-like economy weren’t enough, there also is the problem of fraud. A lawsuit filed in Orange County Superior Court Thursday by the California attorney general’s office targets an Irvine-based national charity solicitation operation. It charges that businessman Mitchell Gold set up three charities representing popular causes, playing upon celebrity endorsements while fronting for an illegal fund-raising scheme. Legitimate charities don’t need this kind of publicity, especially now.

Orange County already has the dubious distinction of being a national center of phone scam operations, and the targeted operation used familiar telemarketing strategies.

The attorney general’s office says that of total public contributions of $8,647,754, only $402,400 went to help the causes of veterans, an anti-drug abuse campaign and a law enforcement program that distributes teddy bears to children.

Clearly, gifts for charity can go into the wrong pockets. What can the public do? The attorney general’s office notes that the U.S. Supreme Court has prohibited states from requiring charities to say what percentage goes to fund-raisers. But that doesn’t mean potential donors can’t insist on knowing. They should, in fact. Legitimate charities will provide this information on request. Moreover, a new state law will go into effect in January requiring at least that professional fund-raisers disclose to potential contributors that they are commercial operations.

The best advice for now: Be wary of telephone solicitations. Check with the Better Business Bureau or the attorney general’s office.

There are reputable fund-raisers. But to be sure donations go where intended, there’s no substitute for cutting out the middleman and giving directly to the charity.