Charity rip-offs are eager to collect
Make sure your storm donations go to groups that get aid to victims
When it comes to disasters, I’ve seen every variety. When it comes to charity rip-offs, sadly, I’ve seen too many.
In moments of crisis, people tend to let their guards down. They assume that all who say they want to help really mean it. Con artists and opportunistic aid groups know this, and they use it to their advantage.
Before I became a columnist, I spent 20 years covering wars and natural disasters for The Associated Press. From Rwandan refugee camps in Zaire, to Minnesota flooding in 1997, to an earthquake in India, to a volcano in Congo, to the tsunami in South Asia, I’ve seen plenty of death and destruction.
I’ve also witnessed remarkable heroism. And stupidity.
Aid groups have delivered high-heeled shoes to Sudanese refugee camps, sent tons of food where there was already plenty and supplied more Land Cruisers to a disaster zone than there were aid workers.
Men posing as preachers have conned the last pennies from the starving and literal fly-by-night aid groups have hung signs in disaster zones only long enough to take a fundraising photo before fleeing.
The most common problem, though, is the nonprofits that are more concerned with meeting payroll than offering assistance.
Sometimes even the biggest groups can lose their way, including the American Red Cross. Multiple investigations have cast doubt on the organization’s fundraising and accounting practices without an adequate response from its CEO.
National Public Radio and investigative reporting website ProPublica have documented irregular behavior in hurricane zones, such as driving empty trucks around to drum up free publicity.
Red Cross President
and CEO Gail McGovern has so far refused to reveal how much of the money the organization collects is actually spent on disaster relief, and until she does, the group will be suspect.
Red Cross executive Brad Kieserman went on NPR to talk about Harvey relief efforts on Wednesday and refused to say how much of the millions of dollars the group has raised under Hurricane Harvey banners will actually end up helping victims.
“I am committed. My team is committed to using our resources and donor dollars in a way that best helps the people of Texas,” was all Kieserman, vice president of disaster operations and logistics, would say. He added that he doesn’t know details about fundraising.
Sen. Chuck Grassley, the Republican chairman of the Judiciary Committee, reported last year that the Red Cross received donations totaling $487 million to help Haiti and then spent $125 million, or about 25 percent, on itself. More than $360 million was given to partner organizations, many of which also took a substantial cut off the top for overhead before providing aid to the needy.
Just be cause an aid organization has an amazingdoesn’ t mean it does the most good. The Red Cross gets only two out off our stars for financial performance from Charity Navigator, a nonprofit that evaluates Internal Revenue Service filings made by non profits.
My preference is to give to local groups that employ local people who have a vested interest in doing what’ s right by the community. The Greater Houston Community Foundation is a good many others.
Then there are the rip-offs.
Last week I wrote about how victims can use crowd funding sites to make it easier for friends and family to contribute to their recovery. After all, if someone you know needs a new car or to replace uninsured property, there is no more efficient way than to put money directly in their pocket.
Using a crowdfunding site to look for people in need, though, is a very bad idea. There are con artists setting up heart-melting profiles, complete with Bible verses, small children and puppies. If you don’t have a long history with people, don’t trust them.
A special place, though, is reserved for those who victimize people a second time. And these scams can happen in person and via the internet.
The most detestable are those who promise to help you apply for thousands of dollars in assistance, if you pay them a fee. They usually claim the group they represent has lots of money, but they need to collect an application fee to discourage fraud. No reputable aid organization does this.
There are other con artists who claim to be federal disaster workers who are ready to help you fill out paper forms. They gather all of your personal information and then use it to steal your identity and the aid that you deserve. Always ask to see an ID.
Some scammers, meanwhile, will enlist Harvey victims as accomplices for insurance fraud. These folks exaggerate the damage done to your property for a cut of the extra-large payout. Get involved in a scam like this, and you can go to jail, too.
None of this should not deter people who want to help. The need is real, and insurance will only pay for so much. Just make sure you give wisely.