Consumer Alert:

Phony Charities
in Times of Tragedy

Please read then forward to your friends and co-workers so they may be informed too.

Whether they are man-made or natural, tragedies often kindle the desire to help victims. After all, Americans have a tradition of giving during times of disaster. However, the Better Business Bureau advises that when you give, give wisely.

Use your head as well as your heart when making a contribution to relief charity. Be wary of appeals that dwell on the tragedy but do not specify how donations will be used. Request literature and call the BBB with any questions.

Some legitimate charities use professional fund-raisers who keep most of the money, and very little money actually winds-up in the hands of the charity. Then, there are outright scams. The phony charities are as regular as clockwork. Within days of any disaster, some people will attempt to take advantage of Americans’ eagerness to assist victims of any tragedy.

Consumers are encouraged to ask lots of questions, ask for referrals, get something in writing and don’t feel pressure to give on the spot. Beware of appeals that bring tears to the eyes but tell you nothing about the charity of what they’re doing about the problems they describe so well.

In the aftermath of the recent horrific shootings at Virginia Tech, the Better Business Bureau is issuing a caution to consumers and businesses to be thoughtful and prudent before contributing to a charity or outreach connected with the tragedy.

These are emotional times, everybody wants to help, but don’t be rushed into making a contribution, advises the BBB. Many well-meaning folks will be establishing charitable organizations to help with the victims or their families. Unfortunately, many of these well-meaning charities are unsophisticated and not really capable of handling significant sums of money.

Even more unfortunately, some charitable solicitations are at best deceitful and, at worst, just plain crooked.

The BBB recommends:

Be wary of appeals that are long on emotion, but short on describing what the charity will do to address the needs of victims and their families.
If you contribute, do not give cash. Make a check or money order out to the name of the charitable organization, not to the individual collecting the donation.
Watch out for excessive pressure for on-the-spot donations. Be wary of any request to send a “runner” to pick up your contribution.
Do not give your credit card number or other personal information to a telephone solicitor. Ask the caller to provide you with written information on the charity’s programs and finances.
Do not hesitate to ask for written information that describes the charity’s program(s) and finances such as the charity’s latest annual report and financial statements. Even newly created organizations should have some basic information available.
Be wary of charities that are reluctant to answer reasonable questions about their operations, finances and programs. Ask how much of your gift will be used for the activity mentioned in the appeal and how much will go toward other programs and administrative and fund raising costs.
Remember the opportunities to give will continue. The tragedy aftermath will not disappear when the headlines do.
If you have questions, contact the BBB charity information service at www.give.org.

Please visit www.sd.bbb.org for additional warnings, tips, and scam alerts.