BBB offers tips for donating safely, wisely after a tragedy
When a tragedy strikes, like Sunday’s Las Vegas mass shooting and the recent hurricanes, people often want to help victims and their families. Unfortunately, con artists also frequently take advantage of well-meaning people during these vulnerable times by asking for donations or setting up fundraising campaigns alleging to be connected to vic-
tims, when they are not.
Janet Torricellas, regional director of the Yuma County Campus of the Better Business Bureau, issued a warning Monday, noting that it’s important to do some research before giving money.
“Out of respect for victims, people want to give during tough times,” Torricellas said. “People will set up crowdsourcing sites, such as a GoFundMe account, saying they represent the victim or the family of the victim. But how do we know they do?”
She pointed out that some crowdsourcing sites do very little vetting of individuals who ask for donations after a tragedy or a disaster, and it is often difficult for donors to verify the trustworthiness of crowdfunding requests.
In addition, the BBB noted, organizations raising funds should get permission from the affected families before using either the names of the victims and/or any photographs of them. According to the BBB, some charities raising funds for the victims of previous shootings did not do this and were the subject of criticism from victims’ families.
Torricellas is not discouraging people from giving, but rather she’s encouraging people to “give thoughtfully” by taking the time to check out the person and/or charity who set up the account or is asking for donations. She suggests visiting Give.org to verify if a charity meets the BBB Standards for Charitable Accountability. Arizona Attorney General Mark Brnovich also points to the BBB’s Wise Giving Alliance, Charity Navigator, Charity Watch and GuideStar as tools to vet and review charities.
“With all the disasters happening and getting towards the holiday season, it’s so important to verify the charity. Make sure it’s listed with the BBB, or on a nonprofit list somewhere, as an ethical charity,” Torricellas said.
Also, the BBB says, don’t assume that charity recommendations on social media have already been vetted.
“Just ask a lot of questions,” Torricellas said. “How will donations be used? Will the donations really go to the victims of the Las Vegas shooting? How do you know they will send it to the right person?”
Brnovich suggests that if someone wants to make a donation they should go to the website of the charity of their choice and make a donation directly. Do not click on any links in emails or texts they might receive.
Likewise, Torricellas warns against clicking on links in emails or text messages from unfamiliar websites. “Don’t click on links you don’t know. They could be a virus.”
Links may also take potential donors to a lookalike website where they will be asked to provide personal financial information.
Torricellas shared some “red flags” that might identify a scammer. “If they’re pressuring you to give on the spot, that’s a red flag,” Torricellas said.
Another red flag is a vague appeal that doesn’t identify the intended use of funds. In addition, donors should check to see if the appeal identifies when the collected funds will be used.
Torricellas noted that sometimes scammers target businesses by calling and soliciting donations. Again, her advice is to ask questions: “Are you a registered nonprofit? Where can I find you online? What can I find online that says you’re a reputable organization? Let’s be smart about how we’re donating our money.”
Some organizations will promise exposure or recognition in exchange for a donation “but you have to be careful that it’s legitimate,” Torricellas said.
“For businesses, they want to verify what’s tax deductible. Make sure you get proof that you donated to the cause, not just a verbal promise. Get it in writing,” she added.
She noted that not all organizations are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code, something to keep in mind if a company wants to take a deduction for federal income tax purposes.
In addition, the BBB points out that contributions that are restricted to helping a specific individual or family are not deductible as charitable donations, even if the recipient organization is a charity.
Some families may decide to set up their own assistance funds, which might not be set up as charities. Also, collected monies received and administered by a third party such as a bank, certified public accountant or lawyer provide oversight and ensure the collected funds are used appropriately (paying for funeral costs, counseling, and other tragedy-related needs).
The BBB also points out that tragedies that involve violent acts with firearms can generate requests from a variety of advocacy organizations that address gun use. Donors can support these efforts as well, but note that some of these advocacy groups are not tax exempt as charities.
Other BBB tips for trusted giving include checking on an organization’s financial transparency and history. “After funds are raised for a tragedy, it is even more important for organizations to provide an accounting of how funds were spent. Transparent organizations will post this information on their websites so that anyone can find out without having to wait until the audited financial statements are available sometime in the future.”
People should also check whether an organization is newly created or if it has been around for a while. “While a personal giving choice, an established charity will more likely have the experience to quickly address the circumstances and have a track record that can be evaluated. A newly formed organization may be well-meaning, but will be difficult to check out and may not be well managed.”