Tips for Giving Wisely
If you plan on contributing to fundraisers to help local fire victims, give thoughtfully and avoid those seeking to take advantage of the generosity of others. Here are BBB’s Wise Giving Alliance tips for trusted giving:
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. Visit Give.org to verify if a charity meets the BBB Standards for Charitable Accountability.
2. Crowdfunding: Keep in mind that some crowdfunding sites do very little vetting of individuals who decide to post for assistance after a tragedy or a disaster, and it is often difficult for donors to verify the trustworthiness of crowdfunding requests for support. For more Give.org tips on crowdfunding, check out this Wise Giving Wednesday post.
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. Some charities raising funds for the victims of previous shootings did not do this and were the subject of criticism from victims’ families.
4. Government Registration: All charities must be registered with the California Attorney General’s office in California. Verify that the charity is registered by contacting the AG’s office at doj.ca.gov or (916) 210-6400. If the charity is not registered, that may be a significant red flag.
5. How Will Donations Will 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, donors will assume that funds collected quickly in the wake of a tragedy will be spent just as quickly unless told otherwise. See if the appeal identifies when the collected funds will be used.
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, and other tragedy-related needs).
7. Online Caution: Never click on links to charities on unfamiliar websites or in text messages or email. These may take you to a look-alike website where you will be asked to provide personal financial information or download harmful malware onto your computer. Don’t assume that charity recommendations on social media have already been vetted.
8. Financial Transparency: After funds are raised for a disaster, 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.
9. Newly-Created v. 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 in the U.S. to assist after a tragedy are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code. Donors can support these other entities, but keep this in mind if they want to take a deduction for federal income tax purposes. In addition, contributions that are donor-restricted to help a specific individual or family are not deductible as charitable donations, even if the recipient organization is a charity. You can check a U.S. organization’s tax status here.
For more information, contact your local Better Business Bureau at BBB.org.
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ABOUT BBB WISE GIVING ALLIANCE: BBB Wise Giving Alliance is a standards-based charity evaluator that seeks to verify the trustworthiness of nationally soliciting charities by completing rigorous evaluations based on 20 holistic standards that address charity governance, effectiveness reporting, finances, fundraising, appeal accuracy, and other issues. Learn more about the 20 BBB Charity Standards and about local charity reviews at local Better Business Bureaus at Give.org.
ABOUT BBB: For more than 100 years, the Better Business Bureau has been helping people find businesses, brands, and charities they can trust.