Burnsville, Minnesota – July 5, 2012 – As cleanup and rebuilding efforts begin in the Duluth region, and as wildfires continue to spread in the West, many people are looking for ways to help by donating to a relief organization or charity. The Better Business Bureau of Minnesota and North Dakota (BBB) is advising people to be sure their donations reach the intended recipients, and warning that – as has so often occurred in similar situations – scammers and fraudulent charities will likely emerge to try and solicit donations from well- meaning individuals.
“The flooding that occurred in Duluth was momentous, and the fires in Colorado have caused tremendous destruction, as well. It will require a great deal of aid and generosity to assist victims of these disasters,” said Dana Badgerow, President and CEO of the BBB of Minnesota and North Dakota. “People looking to help out financially will want to be sure their donations do the maximum amount of good – and stay out of the pockets of scammers.”
The BBB offers the following tips to help donors decide where to direct donations and ensure that their money provides the most benefit to victims of these disasters:
Rely on expert opinion when it comes to evaluating a charity.
Be cautious when relying on third-party recommendations such as bloggers or other websites, as they might not have fully researched listed charities. The public can go to www.bbb.org/charity to research charities and verify that they meet the BBB Wise Giving Alliance’s 20 Standards for Charity Accountability.
Find out who will benefit from the donations and what type of assistance they will be provided.
Ask the charity where it will concentrate its efforts and what products and services it will provide to those who need assistance.
Be wary of claims that 100 percent of donations will assist victims.
Despite what an organization might claim, charities have fundraising and administrative costs. Even a credit card donation will involve, at a minimum, a processing fee. If a given charity claims 100 percent of collected funds will go towards assisting victims, the truth is that the organization is still probably incurring fundraising and administrative expenses. They may use some of their other funds to pay this, but expenses will still be incurred. Wise Giving Alliance Standards state that at least 65% of the funds a charity raises should go to the intended recipients.
Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the fil es may contain viruses.
Know the facts about donating via text message.
Text messaging has become a very convenient way for people to donate “on the go.” By texting a specified keyword to a short code phone number, a set charge (generally $10) is added on to a person’s cell phone bill, with the cell phone carrier, in turn, passing those funds along to the charity. One thing to keep in mind, however, is that it can take up to 120 days for these funds to transfer to the charity. Donations made directly through the charity’s website have a more immediate impact.
Be cautious when giving online.
Be cautious about online giving, especially in response to spam messages and emails that claim to link to a relief organization. In the past, after other disasters, the BBB was contacted by consumers with concerns about many websites and new organizations that were created overnight allegedly to help victims.
If tax deduction is a concern, use the IRS as a resource.
To help ensure your contribution is tax deductible, the donation should be made to a U.S.-based charitable organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code. Go to IRS Publication 78 on www.irs.gov for a current list of all organizations eligible to receive contributions deductible as charitable gifts.
The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll-free at 1-800-646-6222. Visit our Centennial website at bbbis100.org.
