Q. We have friends who are victims of Sunday's tornado. My family wants to help him and our community. Keeping in mind the coronavirus pandemic, how do we support and donate in an impactful manner. What advice may BBB provide?
A. Natural disasters like tornadoes often bring out the best in people, as strangers, reaching out to help others in need. Unfortunately, the aftermath of a crisis also brings out contractors taking advantage of those who have already been victimized. Help your friend and others to be cautious in their actions and decisions.
The Better Business Bureau is warning homeowners affected by this tornado to beware of "storm chasers" and out-of-town contractors soliciting business. Although not all storm chasers are scammers, they may lack the proper licensing for your area, offer quick fixes, or make big promises they can't deliver. At the same time, victims need to keep in mind the social distance guidelines of the CDC and the coronavirus.
There are some things you should do when hiring any contractor (such as getting three estimates, getting everything in writing, and paying with a credit card). BBB also has these specific tips for victims of natural disasters:
1. Contact your insurance company. Ask about your policy coverage and specific filing requirements. Save all receipts, including those for food, temporary lodging, or other expenses that may be covered under your policy. Your insurance company may also have recommended contractors.
2. Do your research. Find businesses you can trust on BBB.org. Check with the state, city or county agency responsible for registering and licensing contractors. Get references from friends and relatives. BBB accredited business members have been vetted for these requirements. E-quotes may be requested on the business BBB review report. If possible compare two to three quotes.
3. Resist high-pressure sales. Some storm chasers use tactics such as the "good deal" you'll get only if you hire the contractor on the spot. Be pro-active in selecting a contractor and not re-active to sales calls on the phone or door-to-door pitches. Disaster victims should never feel forced to make a hasty decision or to choose an unknown contractor.
4. Be especially careful of door-to-door contractors. Ask for identification. Check their vehicle for a business name, phone number, and license plates for location.
5. Don't sign over insurance checks to contractors. Get an invoice from the contractor and pay them directly (preferably with a credit card, which offers additional fraud protection over other forms of payment). Don't sign any documents that give the contractor any rights to your insurance claims. If you have questions, contact your insurance company or agent.
6. Be wary regarding places you can't see. While most contractors abide by the law, be careful allowing someone you do not know to inspect your roof and other areas of your house. An unethical contractor may actually create damage to get work. The same goes for attics, crawl spaces, ducts, and other places you cannot easily access or see for yourself.
BBB is also warning contractors to beware of storm chasers who offer to pay local construction companies substantial amounts of money to use the business's established name, reputation, and phone. They masquerade as a local business, collect the insurance money and then move on, leaving the real business to deal with unsatisfied customers due to bad workmanship, unfinished work, or unfulfilled warranties.
After this terrible tornadic tragedy, people want to help in any way possible, and that often means contributing to charity and fundraisers to help the survivors and the families of the victims. Sadly, scammers often take advantage of these moments of vulnerability to deceive donors.
BBB Wise Giving Alliance, www.give.org, urges donors to give thoughtfully and avoid those seeking to take advantage of the generosity of others. Here are BBB's tips for trusted giving:
1. Thoughtful Giving: Visit Give.org to check charity ratings and verify if a charity meets the BBB Standards for Charitable Accountability. Be proactive and find trusted charities that are providing assistance.
2. Crowdfunding: Keep in mind that some crowdfunding sites do very little vetting of individuals who decide to post for assistance after a disaster, and it is often difficult for donors to verify the trustworthiness of crowdfunding requests for support. Neither Crowdfunding nor GoFundMe sites provide recommended transparency and accountability.
3. Respect for 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.
4. 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. If the charity is not registered, that may be a significant red flag
5. How Will Donations Be Used? Watch out for vague appeals that don't identify the intended use of funds. Think of charity organizations that have infrastructure and boots on the ground who are positioned to help, such as Chattanooga Food Bank, American Red Cross, and the Salvation Army.
6. 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, if 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 (paying for funeral costs, counseling, construction and other tragedy-related needs).
7. 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 that anyone can find out without having to wait until the audited financial statements are available sometime in the future.
8. Charitable Giving. Much like small and large businesses, charities are feeling the impact of the spread of COVID-19, the disease caused by the coronavirus. This community needs your support. This may be monetary, food, clothing and furniture items, or volunteering your time. Give, but give wisely.
Additional information is available at: www.bbb.org/cononavirus and www.bbb.org/smallbusiness.
Jim Winsett is president of the Better Business Bureau in Chattanooga.