Caution urged when making donations

Caution urged when making donations

Sept. 22, 2001

Colorado Attorney General Ken Salazar and regional Better Business Bureaus are urging area residents to be cautious when approached by new, unfamiliar fund-raising appeals intended to provide assistance to victims of the New York and Washington, D.C., terrorist attacks.

"Given the magnitude of the event and the needs of victims and their families, we encourage the public to contribute to helpful causes, especially at this time," said Art Taylor, president and CEO of the BBB Wise Giving Alliance in a press release. "However, it is critical for donors not to succumb to pressure to make an immediate donation without first checking out soliciting groups to ensure their generosity is not misplaced."

Fraudulent solicitors often demand on-the-spot contributions and rely on the fact that individuals will not question their efforts, Taylor said.

The public will receive appeals from both established and newly formed organizations. But all appeals should clearly describe the specific services the charity intends to provide to those with injuries or those whose family members were killed in the terrorist attacks. Further, they should describe whether the organization intends to meet immediate or long-term needs of those victimized, or both. Even newly established charities should have written material available describing their programs, anticipated expenditures, and plans for carrying out activities.

The BBB advises against giving out credit-card numbers to a phone solicitor, or in response to an e-mail received from an unknown individual or organization. This can be a ruse to obtain the card number for illegitimate purposes. Ask the caller or e-mail sender to provide written information on the charity’s programs and finances before you make a contribution decision.

In addition, the BBB cautions the public to carefully review offers for the sale of consumer items that claim the purchase will assist the victims of this tragedy. While some such offers will provide help, others may not have the approved use of a charityname or may provide very little to the charities. Look for a clear disclosure that specifies how much of the sale goes to the charity and do not hesitate to contact the name organization to confirm details.

Some tips offered by Salazar and the BBB:

• If you contribute, do not give cash. Make a check or money order out to the name of the charitable organization, not to the individual collecting the donation.

• Watch for excessive pressure for on-the-spot donations.

• Ask for and get the name and address of both the paid fund-raiser and the charity he or she represents.

• Be wary of charities that are reluctant to answer reasonable questions about their operations, finances and programs. 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 fund-raising costs.

• Find out what the charity intends to do with any excess money remaining after they have funded activities for the victims and families.

• Keep in mind that, while numerous legitimate charity organizations maintain web sites through which donations can be made, e-mail solicitations are rarely used by these legitimate organizations.

• Check out charities with the BBB and obtain further information by visiting www.give.org. The Federal Trade Commission is also a source of information about charitable scams. Their web site is www.ftc.gov.

• Remember the opportunities to give will continue long after the headlines disappear.

If you believe a fraudulent fundraiser has contacted you, call the Attorney General-BBB Colorado Consumer Line at 1-800-222-4444.

You can also check the Philanthropic Advisory Service at the Council of Better Business Bureaus, 1-800-575-GIVE.