The Federal Trade Commission estimates that Americans gave roughly $1.5 billion last year to groups that either don't meet financial responsibility guidelines for charities or are committing fraud, the Philadelphia Inquirer reports.

To combat this problem, the FTC is joining with a number of groups, including the American Institute of Philanthropy, the Better Business Bureau, and the National Charities Information Bureau, to get the word out about common-sense giving practices, the paper reports.

The FTC is also publicizing its online complaint form so consumers can report groups that use false or misleading tactics to raise money.

Taken in context, charity fraud accounts for only about one percent of the $143 billion Americans gave in 1997 to nonprofit and tax-exempt organizations, the paper reports.

The problem may grow larger, however, as the number of tax-exempt groups increases by an estimated 25,000 each year, the paper reports.

To make sure donations go to good causes, consumers should bear in mind the following advice:

• Check the nonprofit group's letter-grade rating issued by the American Institute of Philanthropy or the BBB's Philanthropic Advisory Service if you have doubts
• Beware of "sound-alike" names. Some groups bear names similar to legitimate, well-established groups but have no ties to the original group
• Ask how much of your donation will be used for relief efforts or programs. Reputable groups will gladly provide the information. If a group or representative hesitates, take that as a warning sign
• Watch for any telephone solicitation that asks for personal financial information or offers to send over a courier.

The FTC also provides a variety of online anti-fraud tips. If you believe you are the victim of charity fraud, you also can contact the National Fraud Information Center, which is a project of the National Consumers League.

Full text of the article is currently found at:
http://www.phillynews.com/inquirer/98/Nov/29/business/
GIVE29.htm