Charities and donors should seek proof of credibility
Lake Oswego, Ore. – Feb. 19, 2010 – Well-meaning “philanthropreneurs” collect donations before registering organization as a non-profit.
In an attempt to honor his late wife and her daughter, Simon Monjack and Sharon Murphy formed the Brittany Murphy Foundation as a charitable organization dedicated to arts education for children—a cause beloved by the recently deceased actress. Within weeks of her passing, an invitation to the foundation’s memorial fundraiser was circulating and requesting “suggested donations” of up to $10,000.
Shortly thereafter, news leaked that the Brittany Murphy Foundation is not properly registered as a non-profit with the California Secretary of State’s office or the Internal Revenue Service.
Charities and commercial fundraisers must comply with California state laws, register with the Attorney General’s Office, and file financial disclosure reports. Those with gross revenue or assets in excess of $25,000 must file reports annually with the Attorney General’s Registry of Charitable Trusts. Visit www.ag.ca.gov/charities for more details.
Though the fundraiser was abruptly canceled, some donations were collected. Now, brittanymurphyfoundation.org says it will return all donations and stop soliciting until the non-profit status is official.
Better Business Bureau serving Alaska, Oregon and Western Washington offers the following guidance to consumers:
For those interested in forming a charitable organization:
Check with the state Attorney General’s office and Oregon Secretary of State for information on forming a charity or not-for-profit organization.
Get important tax guidelines for charities and not-for-profits from the IRS.
Learn about BBB’s Charity Review Program and how BBB evaluates organizations based on 20 Standards for Charity Accountability. Ask about BBB’s Charity Seal Program, which helps the public easily identify legitimate charities.
For potential charity donors:
In the wake of celebrity tragedies, be cautious when considering recently established organizations. Make sure charities are properly registered with the state. If it’s local, verify with the Oregon Department of Justice.
Search the IRS database to verify tax information on organizations.
Your BBB offers Charity Review Resources to assist potential donors in making wise donating decisions. Get free Charity Review Reports at www.bbb.org/charity.
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About BBB Foundation:
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FOUNDATION SOLICITS FUNDS, FAILS TO FILE PAPERWORK
Charities and Donors Should Seek Proof of Credibility
