BBB Encourages Giving, But Warns Against Scams

The Better Business Bureau warned Upstate residents Thursday against potential scams by researching charities before they donate.

In the wake of disasters like Gustav and Ike, the Better Business Wise Giving Alliance recognized the need that many charities have.

Already, wspa.com has reported that organizations like the American Red Cross are straining their resources, leading to increased pushes to raise more funds.

The Better Business Bureau’s Wise Giving Alliance encouraged Upstate citizens to give whenever possible, but pointed out that unscrupulous individuals may use these disasters to scam unsuspecting community members out of money.

The BBB Wise Giving Alliance stated in a press release potential donors should be aware of the following:

Be cautious when relying on third-party recommendations such as bloggers or other Web sites, as they might not have fully researched relief organizations. Donors can research charities and relief organizations to verify 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 fund raising 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 go toward assisting Gustav or Ike victims, donors should be skeptical. The truth is that the organization is still probably incurring fund raising and administrative expenses. They may use some of their other funds to pay this, but the expenses will still be incurred.   

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, 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, donors 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.

In-kind drives for food and clothing—while well intentioned— may not 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.