As immediate relief needs are assessed in the wake of the devastating earthquake in Haiti on January 12, 2010, many Americans are looking for ways to help by donating to a charity. Your Better Business Bureau Foundation warns that—as occurred following the tsunami in 2004 and Katrina in 2005—fraudulent charities will likely emerge trying to scam donations from well-meaning Americans.
"Whenever there is a major natural disaster, be it home or abroad, there are two things you can count on. The first is the generosity of Americans to donate time and money to help victims, and the second is the appearance of poorly run and in some cases fraudulent charities," said Robert W.G. Andrew, CEO of BBB serving Alaska, Oregon, and Western Washington. "Not only do Americans need to be concerned about avoiding fraud, they also need to make sure their money goes to competent relief organizations that are equipped and experienced to handle the unique challenges of providing assistance."
BBB Foundation offers the following six tips to help Americans decide where to direct donations:
Rely on expert opinion when it comes to evaluating a charity. Be cautious when relying on third-party recommendations such as bloggers or other Web sites, as they might not have fully researched the listed relief organizations. The public can go to www.bbb.org/charity to research charities and relief organizations to verify that they are accredited by BBB and meet the 20 Standards for Charity Accountability.
Be wary of claims that 100 percent of donations will assist relief 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 charity claims 100 percent of collected funds will be assisting earthquake 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 the expenses will still be incurred.
Be cautious when giving online. Be cautious about online giving, especially in response to spam messages and e-mails that claim to link to a relief organization. In response to the tsunami disaster in 2004, there were concerns raised about many Web sites and new organizations that were created overnight allegedly to help victims.
Find out if the charity has an on-the-ground presence in the impacted areas. Unless the charity already has staff in the effected areas, it may be difficult to get new aid workers to quickly provide assistance. See if the charity’s Web site clearly describes what they can do to address immediate needs.
Find out if the charity is providing direct aid or raising money for other groups. Some charities may be raising money to pass along to relief organizations. If so, you may want to consider “avoiding the middleman” and giving directly to charities that have a presence in the region. Or, at a minimum, check out the ultimate recipients of these donations to ensure the organizations are equipped to effectively provide aid.
Ask before giving gifts of clothing, food or other in-kind donations. In-kind drives for food and clothing—while well intentioned—may not necessarily be the quickest way to help those in need, unless the organization has the staff and infrastructure to be able to properly distribute such aid. Ask the charity about their transportation and distribution plans. Be wary of those who are not experienced in disaster relief assistance.
About BBB Foundation:
BBB Foundation is a 501(c)3 organization dedicated to educating consumers on a variety of marketplace issues. BBB Foundation is an affiliate of BBB serving Alaska, Oregon & Western Washington.
About your BBB serving Alaska, Oregon and Western Washington:
Your Better Business Bureau is a not-for-profit organization funded by Better Business Bureau Accredited Businesses. The BBB's mission is to be the leader in advancing marketplace trust. For more information about the services and products provided by your BBB, call 206-431-2222 or 253-830-2924 in Washington, 503-212-3022 in Oregon, 907-562-0704 in Alaska, or visit our Web site at www.bbb.org.
