Tips to Avoid Getting Fooled When Donating

So you’ve probably been glued to the television set over the past few weeks just like the rest of the world watching the tragic events unfold down south in the aftermath of hurricane Katrina. Hurrricane Rita is on the way and there may even be others to follow before the season is over. People all over the country are digging deep to try to help out with food, supplies, shelter and monetary aid. Psychologists tell us that there is a basic human need to contribute during a disaster, after all we are tribal and social animals. But, just like in the wild, there are those predators that try to take advantage of the situation.

There are literally hundreds of websites and telephone numbers being aired on TV for charitable giving and the Better Business Bureau has issued some tips to make sure that the aid gets to where it’s supposed to go and you don’t get ripped off.

First of all, be wary of any charity that is inexperienced in carrying out disaster relief, but is suddenly soliciting for hurricane relief. Although the intentions of some of these organizations are honorable, they may just not have the ability to deliver the goods.

Watch out for organizations or individuals whose appeal for help is long on emotion and short on the details. Ask them what they intend to do with any funds that are left over after their immediate drive is finished.

Most of the relief organizations prefer monetary donations instead of goods. That way they can purchase the needed items as close to the disaster area as possible. This saves both time and transportation cost. I spent two years as the mass feeding chairman for the Red Cross in Franklin County, Missouri and one of my duties was to set up voucher systems with local merchants in case of a disaster, so I know how this works. The other thing is, the organizations themselves know what they need and you may not.

One simple thing you can do is to go to the website : www.give.org for a list of legitimate relief organizations and a comprehensive evaluation on each one of them. If you do decide to contribute, don’t send cash. Instead make out a check or money order with the name of the organization on it. Do NOT make out the check to anyone who claims to represent the group.

Beware of “phishing” scams that arrive through spam or unsolicited email. These message may link to a false website that may look like the real thing. And whatever you do, NEVER give out a credit card number or any information about the financial institution that you do business with.

Watch out for excessive on the spot pressure to donate. Be wary of any offer to send out a “runner” to pick up your donation.
Finally, don’t be afraid to ask basic questions about the group’s background and financial operation. Even groups that have only been around for a short period of time should have the basic information on file. In order for your contribution to be tax deductible, the organization has to be tax exempt under section 501 (e) of the Internal Revenue Code. You can go to www.irs.gov to get a list of organizations that qualify.

One important thing to remember too, is that organizations like The Red Cross, Salvation Army and The United Way need your help even after the disaster is over and everything is cleaned up. The more they are prepared to help, the better we are all prepared.