Caution in charitable giving

Kentucky law regulates people who are paid to raise money for charities, and it treats deceptive charity appeals as unlawful trade practices. Donors still need to check a charity for themselves before giving.

Rules for paid fundraisers and charities

A professional solicitor is a person or company paid to ask for donations on a charity’s behalf. Before working in Kentucky, a professional solicitor must register with the Attorney General, post a $25,000 bond and undergo a background check.

When asking for a donation, a professional solicitor must disclose its registered name, that it is being paid, the charity it represents and how the money will be used. On request, it must say what percentage of the money raised the charity will receive.

Charities that file a federal Form 990 and solicit in Kentucky must file a copy with the Attorney General. Religious organizations raising money for religious purposes are among those exempt.

How to check before giving

• Ask for the charity’s full name, address and phone number, whether the caller is a paid fundraiser, and how much of the gift reaches the charity.
• Look for the charity and the fundraiser on the Attorney General’s lists of registered organizations and solicitors.
• Use the IRS Tax Exempt Organization Search tool to see whether gifts to the group are deductible.
• Ask for written information, including a financial statement.

Warning signs and reporting

• Pressure to give immediately.
• A name or logo that closely copies a well-known charity.
• A request for cash, gift cards or a wire transfer, or an offer to send a courier to pick up the gift.
• A bill for a pledge that was never made.
• Refusal to send written material or financial details.

It is unlawful to claim to raise money for a charity without its written permission, to use a name similar enough to another charity’s to mislead donors, or to send misleading caller ID information. Knowingly violating the registration or disclosure rules is a Class D felony.

A donor who paid a suspected scam by card can ask the issuer to dispute the charge. The Attorney General’s office takes scam reports online and by hotline, and the Federal Trade Commission takes them at ReportFraud.ftc.gov.

Tax deduction basics

Only gifts to qualified organizations are deductible, and gifts made directly to an individual are not. In general, a donor must itemize to claim a charitable gift. Beginning with tax year 2026, the IRS says taxpayers who do not itemize may deduct up to $1,000 in cash gifts to certain qualified organizations, or $2,000 on a joint return. A gift of $250 or more requires a written acknowledgment from the charity.