Worldwide catastrophes often bring out the charitable nature in
people, but before donating to relief efforts, many may want to be
extra careful.
In the weeks following the tsunami disaster, donors are being
warned to watch out for con artists and illegitimate charities that
watchdog groups say will likely surface.
Donors should take the time to check out charities before
donating and be wary of new non-profit organizations, said Sheila
Adkins, a spokeswoman for the Council of Better Business
Bureau.
“You can always expect scam artists to come out of the
woodwork when there has been a natural disaster, or just a
disaster,” Adkins said.
So far, some scams are circulating via mail, unsolicited e-mail
and fax. Con artists claim to be victims in need of aid or
acquaintances of victims requesting access to U.S.-based bank
accounts in order to transfer inheritance money.
These are similar in form to the Nigerian Scam ““ a scam by
individuals claiming to be Nigerian businessmen seeking access to
U.S. bank accounts to transfer funds frozen by the Nigerian
government.
In addition, new charities are forming, Adkins said. These
charities are “questionable,” since they don’t
have established track records, she said.
Most importantly, watchdog services and national charities agree
that to avoid falling for a scam, donors should research non-profit
organizations prior to donating.
Legitimate non-profit groups should be willing to provide
potential donors with their annual report, said Vanessa Shinmoto, a
spokeswoman for American Institute of Philanthropy, a charity
watchdog service.
“Any reputable charity will be more than happy to send any
written information … and their financial report,” Shinmoto
said.
In addition, Shinmoto suggested donors make sure charities are
registered with local, state and federal authorities and the State
Attorney General’s Office. Reputable charities with an income
greater than $25,000 must also file an IRS form 990 ““ a
report filed to the Internal Revenue Service by most tax-exempt
organizations about their operation, organization and finances.
Donors can research these records through the consumer division of
the Attorney General’s Office, she said.
The American Institute of Philanthropy evaluates and lists
top-rated charities in different categories, including
“International Relief and Development.”
In addition, the Better Business Bureau formed the Wise Giving
Alliance in 2001 to set standards for charities and evaluate
nonprofit organizations by these standards, Adkins said.
Furthermore, in the aftermath of a disaster, many charities
surface with names similar to well-known non-profit organizations,
Shinmoto said.
In encouraging donations to legitimate organizations, watchdog
services remind the public of the number of scams that did develop
following the Sept. 11, 2001 terrorist attacks.
“There were a lot of fraudulent charities that were set up
during that time, claiming to help victims and their families but
actually just padding their own pockets,” Adkins said.
While the setup has changed, the types of scams are similar,
said Sara Veltman, a spokeswoman for the American Red Cross.
In order to make sure donation dollars count toward relief
efforts, donors should pay by check or money order and donate to
U.S.-based charities, which makes tracking donations and
researching charities easier, watchdog groups agree. In addition,
giving money instead of clothing or food will allow greater variety
and more efficient use of the donation. For example, the American
Red Cross is accepting financial donations only to eliminate
transportation costs and distribution difficulties, Veltman
said.
On campus, student groups are still working to raise relief
funds. Last Saturday, at the Muslim Student Association West
Conference, an annual conference of Muslim student associations on
the West Coast, the UCLA MSA pledged to collect and donate $20,000
for tsunami relief.
For more information, visit www.give.org or
www.charitywatch.org.