Q. My family wishes to support victims of the Orlando tragedy. I am conflicted by the many charity, GoFundMe and crowdsourcing options available. What advice may BBB provide?
A. In the wake of the largest mass shooting in U.S. history, the BBB Serving Central Florida and the BBB Wise Giving Alliance, the national charity monitoring arm of the Better Business Bureau, caution donors about potential red flags in fundraising to help Orlando victims and their families, and to be aware of the different circumstances that often emerge in tragedy-related philanthropy.
“Tragedy inspires people to give, and this terrible tragedy is drawing incredible response already from people all around the world,” said H. Art Taylor, president of the BBB Wise Giving Alliance “The best way to help the victims, their families and the people of Orlando is to make sure that donations end up where they belong. We are already hearing about click-bait schemes and questionable solicitations, and we expect there will be numerous scams and frauds. We urge those generous donors to give wisely so their gifts can do the most good.”
BBB Wise Giving Alliance urges donors to give thoughtfully and avoid those seeking to take advantage of the generosity of others. Here are 10 tips for giving with confidence.
1. Thoughtful giving. Take the time to check out the charity to avoid wasting your generosity by donating to a questionable or poorly managed effort. The first request for a donation may not be the best choice. Be proactive and find trusted charities that are providing assistance.
2. Government registration. About 40 of the 50 states in the U.S. require charities to register with a state government agency (usually a division of the State Attorney General’s office) before they solicit for charitable gifts (in Canada, charities register with the Canada Revenue Agency.) If the charity is not registered, that may be a significant red flag.
3. Respecting victims and their families. Organizations raising funds should get permission from the families to use either the names of the victims and/or any photographs of them. Some charities raising funds for the Colorado movie theater victims did not do this and were the subject of criticism from victims’ families.
4. How will donations be used? Watch out for vague appeals that don’t identify the intended use of funds. For example, how will the donations help victims’ families? Also, unless told otherwise, donors will assume funds collected quickly in the wake of a tragedy will be spent just as quickly. See if the appeal identifies when the collected funds will be used.
5. What if a family sets up its own assistance fund? Some families may decide to set up their own assistance funds. Be mindful that such funds may not be set up as charities. Also, make sure collected monies are received and administered by a third party such as a bank, CPA or lawyer. This will help provide oversight and ensure the collected funds are used appropriately (e.g., paying for funeral costs, counseling and other tragedy-related needs.)
6. Advocacy organizations. Tragedies that involve violent acts with firearms can also 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. Also, watch out for newly created advocacy groups that will be difficult to check out.
7. Online cautions. Never click on links to charities on unfamiliar websites or in texts or emails. These may take you to a lookalike website where you will be asked to provide personal financial information or to click on something that downloads harmful malware into your computer. Don’t assume charity recommendations on Facebook, blogs or other social media have already been vetted.
8. Financial transparency. 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 anyone can find out and not have to wait until the audited financial statements are available in the future.
9. Newly created or established organizations. This is a personal giving choice, but 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.
10. Tax deductibility. Not all organizations collecting funds to assist this tragedy are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code in the U.S. Donors can support these other entities but keep this in mind if they want to take a deduction for income tax purposes. In addition, contributions that are donor-restricted to help a specific individual/family are not deductible in the U.S. as charitable donations, even if the recipient organization is a charity.
At this time, the Heart of Florida United Way is the designated local nonprofit organizing relief and fundraising efforts for the victims of the Orlando attacks. BBB suggests accountability and transparency is most important in deciding where you donate money. Vague appeals, if the site does not specify where and how the funds will be donated and distributed, may be a red flag.
BBB advises to give, but give wisely. If you feel that you are a victim of a scam, please notify authorities and post at www.bbb.org/scamtracker.
Jim Winsett is president of the Better Business Bureau in Chattanooga.