While most telemarketing charities are bona fide, you've got no way of knowing how much of your donation is going to the charity and how much is being pocketed by the telemarketers themselves. Our own investigation in late 2002 into the Children at Risk Education Foundation (CARE) found a staggering 75 cents in every dollar of donations was going to the telemarketing company (see our Giving to charity report for more information).
The Commerce Commission is responsible for registering and monitoring charities in New Zealand, under the Charities Act 2005. One of the requirements of registration is that a charity has to provide information about how and on what, donations are used.
If you are in doubt about whether a charity is genuine or not you can search on the Charities Register website. There is also a free information line 0508 charities (0508 242 748).
Registration as a charity is voluntary, however from July 2008 only charities that are registered are eligible for tax exemptions.
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