Donors who frequently give to charities can easily be confused by organizations with similar names.

Currently, there are close to 600,000 organizations tax-exempt as charities under section 501(c)(3) of the Internal Revenue Code. A large number of these organizations address similar causes and issues.

No one organization owns a copyright for a specific cause. Therefore, it is essential for donors to double check each time a contribution is made.

Even if you know the street and city where your favorite charity is located, a similar sounding organization may maintain a postal drop within a few blocks of the well-known organization.   

Groups who seek to capitalize on local support may operate under the name “Houston” or “Texas” when, in fact, there is no local activity conducted except fund raising.

The media frequently provides news coverage and publicity for charities. Questionable “sound-alike” charities may schedule telemarketing campaigns to coincide with media coverage of a legitimate charitable event. These telemarketers capitalize on one charity’s publicity to increase their own revenue.

Donors should be aware that many charities, like companies, operate under several different names. There may be a parent organization that operates many specific cause oriented charities. Corporate philanthropy departments seeking to diversify their giving should be aware that several donations to different causes may be actually be going to a single charity. Some charities openly disclose this information, but others may require an inquiry by the donor.

The BBB urges philanthropists to always check the financial status and distribution of funds with the BBB. Contributors should never rely on their memory when making a donation. Questionable charity promoters operate profitable organizations across the country based on the principle of mistaken identity and an honest sounding name.