Charity Scams with Michael Thatcher and Zachary Weinsteiger

With Giving Tuesday right around the corner, it is important to make sure that the money we give gets to the causes we are passionate about. In the midst of the season of giving, scammers are working to get as much of your charity as they can.

Today's guests are Michael Thatcher and Zachary Weinsteiger. Michael leads Charity Navigator and its efforts to make impactful philanthropy easier for all by increasing the breadth and depth of ratings coverage of a large number of charities. He has held various board positions within the non-profit and tech sector, holds several patents in enterprise systems management, and has a degree from Columbia University in New York. Zachary is on Charity Navigator's analyst team and is responsible for data collection, research analysis, and the evaluation of the performance of America's largest charities. He also works towards improving the evaluation system and process.

Show Notes:

• [1:16] - Michael has been with Charity Navigator for about 5 years, but previously worked for Microsoft. He was attracted to Charity Navigator to make a more positive impact.
• [2:04] - Zachary initially intended on being an educator on the college level, but during the course of study he felt that he wanted to do more. He wound up with Charity Navigator after hearing someone speak at his graduation.
• [2:53] - Charity Navigator was started in the early 2000's by someone who was wealthy and wanted to donate money. He noticed that there was no way to evaluate the organizations he would invest in, so he started it himself.
• [4:42] - Michael shares how large the non-profit and charity sector is in the United States.
• [6:10] - On one hand, there are several successfully run charities, but then there are some that fall apart.
• [6:42] - Michael started working in the non-profit sector when he opened a dance company with his wife. Unfortunately, it failed, but now he has found himself in a similar position running Charity Navigator.
• [8:03] - The hardest part about charity scams is that they're scams and until they get caught, we don't know they're scams.
• [9:32] - Zachary says that sometimes the donors might not actually know they were scammed and move forward without knowing.
• [10:43] - If you feel like you have been scammed, you need to report it, regardless of the feeling of embarrassment that many people feel.
• [11:04] - Look for transparency. Legitimate charities will have a website and will be able to direct you over the phone to a way to find out more about them.
• [13:10] - Be intentional with your giving. Donate to causes that you care about and find out if the charity in question is on Charity Navigator.
• [14:29] - During times of crisis, people change their giving philosophy. This year, the United States has seen different crises and people may be donating to charities they don't normally notice.
• [16:21] - Charity Navigator has a relationship with GoFundMe and Michael says it is a legitimate, strong, and successfully run crowd-funding site. But if you don't know the person and have a real relationship with that person, you need to be wary.
• [18:04] - What Zachary notices with GoFundMe is when individuals donate to others they don't know, there's no form of accountability.
• [20:09] - There are organizations that are a good filter to avoid fabricated stories on GoFundMe. Michael shares them as Give Directly and Donors Choose.
• [21:39] - When you donate to charities through Give Directly and Donors Choose instead of GoFundMe, you can use them as a tax write off. When you donate to an individual on GoFundMe, you cannot.
• [22:08] - One of the key things that Charity Navigator looks for is strong financial performance. Michael describes what this looks like and why it is important.
• [22:41] - Another important facet that Charity Navigator looks for to establish their ratings is the charity's level of transparency and governance.
• [23:33] - Overhead costs are not a bad thing. The salaries of the people that work with the charity organizations are important too. Charity Navigator looks at this as well.
• [25:02] - Michael dives into the way their rating system works and what a rating could mean.
• [28:19] - There really isn't a one-size-fits-all that works in this space. Michael compares a charity that supports an orchestra versus an organization for a homeless shelter. Charity Navigator does not cross compare.
• [29:36] - Charity Navigator is the largest independent evaluator of charities in the US and has been around for 20 years.
• [31:14] - Charity Navigator has a team of only 26 people to maintain a small business feel and keep their costs low as well. Each analyst is assigned a specific type of charity that they themselves care about. Zachary explains how this works.
• [33:25] - Another thing Charity Navigator sees frequently is when costs disappear. Zachary explains how this works and how it goes into an evaluation.
• [35:53] - Charity Navigator uses the form charities fill out to establish and maintain the organization. This creates uniformity, consistency, and gives them a way to determine if a charity is being truthful.
• [39:42] - Michael explains how and why the end of the year sees an increase in donations and traffic to their site.
• [41:18] - Scams pop up during this time of year as well because scammers know that people are in a rush and are in an emotionally driven time to give.
• [43:13] - Charity Navigator has a feature called The Giving Basket which allows you to donate to an organization through their website. This is a very safe way to make a donation to make sure it goes directly to the right place.
• [44:55] - Before you give, do your research. Slow down and look at everything you can find about the organization.
• [45:39] - Think of your giving as an investment and follow the money. Stay connected to the non-profits you give to because you are investing in the changes they bring to the world.

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• Michael Thatcher on LinkedIn
• Zachary Weinsteiger on LinkedIn