Click to Donate? Not So Fast

Charity Malls: Shop Until You Drop

If you already use the Web for shopping, online charity malls are an easy way to donate. With more of them appearing all the time, you have a choice among numerous charities. The malls work by donating a percentage of your purchase total to a charity of your choice. Online retailers may pay a commission on your purchase, and a percentage of that commission goes to charity.

You'll want to take the time to find out just how much of that commission is going to charity, warns Pete Mountanos, the chair, founder, and chief executive of Charitableway.com. "Web sites may pay the mall 15 percent, but the mall may only send 5 percent of that to charity. There's a big range in how much is actually going to charity," he says.

And with more of these "malls" popping up every day--NCIB's Lanagan estimates that one new mall appears each week--it's worth the time and effort involved to do a little research.

Beware of Scams

Fraudulent charity sites have not been discovered in any great numbers, but that doesn't mean they don't exist. One recent scam site was set up after the Alaskan Airlines plane crash earlier this year.

After disasters, people have an immediate reaction and want to make donations, the NSFRE's Nilsen says. And while the Internet offers the value of fast access, speed can also be one of its biggest downfalls.

Many people heard of the plane crash and logged on to the Internet to make donations. Some who did so ended up falling victim to frauds. "A couple" of sites that purported to be accepting donations for this cause were actually scams, Nilsen says.

"People want to donate now, but waiting a week and taking the time [to get written information] will have the same effect," he says.

So, while the Internet offers speed and easy access to many charities, taking the time to research your cause can ensure that your money gets to the right place.