Better Business Bureau Gives Advice for Donors to Hurricane Victims

The Better Business Bureau of Minnesota and North Dakota (BBB) has been receiving calls from citizens who wish to donate money and goods to victims of Hurricane Katrina. The Bureau offers the following advice:

• Make sure you are donating to a reputable organization. Obtain reports on charities by visiting the BBB’s Wise Giving Alliance at www.give.org. Local charity reports and helpful tips for donating to this crisis can be found at the Minnesota Charities Review Council at www.crcmn.org.

• Donate money. Food, clothing, and supplies are not as essential in the early stages of such a large disaster. Money is what is immediately needed. Many times, if a monetary donation is made, the money will go to purchase goods and services in the stricken area, which will help boost the area’s economy.

• Investigate online charities, too. If you decide to contribute online, research the charity before making a contribution and beware of red flags. For example, some charities imitate the name and style of well-known organizations in order to confuse people. Also, be wary of any spam or email message asking you to make a contribution. In what is known as a “phishing” scam, such messages may link to a “false” website that looks just like the website of an established relief charity. This could be a ruse to get you to share your credit card or other personal information.

• Ask for information before you give credit card or other personal information to a solicitor. Do not hesitate to ask for written information that describes the charity’s programs and finances such as the charity’s latest annual report and financial statements. Even newly created organizations should have some basic information available.

• Be wary of charities that refuse to answer questions. If an organization is reluctant to answer reasonable questions about its operations, finances and programs, don’t contribute until you have the answers you need. Ask how much of your gift will be used for the activity mentioned in the appeal and how much will go toward other programs and administrative and fundraising costs.

• Check out deductibility. To help ensure your contribution is tax deductible, the donation should be made to a charitable organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code. Go to IRS Publication 78 on www.irs.gov for a current list of all organizations eligible to receive contributions deductible as charitable gifts. Be sure to ask for a receipt for your donation.

• Do not succumb to high-pressure requests. Tell the solicitor you will need to do research on the organization before making a decision. If it is a legitimate organization, they will be happy to call you at a later date or allow you to call them when you have made your decision. If you feel you need to make a donation immediately, visit the Red Cross online at www.redcross.org or call them at 1-800-HELP-NOW.

The Better Business Bureau of Minnesota and North Dakota is a private, non-profit organization providing services to consumers and businesses. The focus of the Bureau’s activity is to promote an ethical marketplace by encouraging honest advertising and selling practices, and offering dispute resolution. For more information on the Better Business Bureau, visit the Bureau’s website at www.mnd.bbb.org or call 651-699-1111, toll-free 1-800-646-6222.