Safeguarding Your Charitable Dollars

Charitable appeals hit a fever pitch during the holidays--as do charity scams. Bogus philanthropies, often with familiar-sounding names, crop up at this time of year, aimed at skimming a portion of American charitable dollars into con artists’ pockets.

“Sorting through the many requests from charitable organizations, especially during the holiday season, can be a daunting task,” acknowledges Jamie Jaffee, president of Fidelity Investment Charitable Services’ division.

However, those who follow a few simple rules can dramatically reduce the chance that their philanthropic dollars will fall into the wrong hands.

“First and foremost, it is important to know that you have the right to receive, upon request, written information about the organization, its mission and its intended use of your resources,” Jaffee says. “Don’t be fooled by names that sound impressive, or closely resemble the name of another well-known organization.”

Any charity that asks you to give should be willing to send to you--in the mail--a description of its programs and activities and a charity information card that describes how much of its annual income goes to services, fund-raising and administration.

The Registry of Charitable Trust in the Office of the Attorney General ([916] 445-2021) maintains information on charities operating in California. However, if you need the information faxed to you, it’s likely to cost $6 to $9. The IRS handles requests for information about charities on its all-purpose tax information line at (800) TAX-1040.

In addition, two national watchdog groups--the Philanthropic Advisory Service of the Council of Better Business Bureaus and the National Charities Information Bureau--maintain files on many large national charities and they’re more cooperative and easier to reach than the government agencies. PAS can be reached at (703) 276-0100. NCIB is at (212) 929-6300.

* Holiday Gift Contest: Got a kid with a bright, cost-effective way to handle the holidays? Consumer Credit Counseling Service of Orange County and Radio AAHS-AM (830) (pronounced “Oz”), a 24-hour radio network geared to kids age 12 and under, are teaming up to deliver a message of fiscal prudence through a holiday contest.

Kids who have a money-saving gift tip can mail the idea to Jennifer at CCCS, P.O. Box 11330, Santa Ana, CA 92711-1330. The best idea will be aired on the radio station, and the winner will receive a prize package that includes tickets to a Mighty Ducks game.

* Free sector-fund guide: Thinking about investing in a single segment of the stock market, such as technology stocks or bank stocks or precious metals? Sector funds, which zero in on narrow segments of the market, may be just the ticket for you.

However, sector funds are far more volatile--rising more and falling further in short periods of time--than ordinary stock funds, which tend to be widely diversified among different industry groups. Still, if you want to gamble on the future of biotech or want to concentrate a portion of your portfolio in nothing but utilities, they might be worth considering.

To help make the determination, Invesco Funds Group, a Denver-based mutual fund company, has put out a 14-page guide that explains some of the risks and rewards. The guide is available free to those who request it at (800) 610-9337.

Be aware, however, that this guide is clearly biased in favor of sector-fund investing.

Consumer Checklist is a weekly feature that covers a range of pocketbook issues of interest to Californians. To contribute information about new legislation, products, services or surveys, write to Kathy M. Kristof, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053; or e-mail kathy.kristof@latimes.com