09/ 02/ 2005
With the disastrous aftermath of Hurricane Katrina, people across the country looking for ways to help those in New Orleans and on the Gulf Coast.
“When disaster strikes, generous Americans come forward to help those in need,” Idaho attorney general Lawrence Wasden said in a consumer alert. “Unfortunately, there are also unscrupulous individuals who view tragedies as an opportunity to take advantage of those willing to open their hearts and their pocketbooks.”
Charitable scams often arise during crisis situations. While many legitimate organizations provide relief to disaster victims, con artists historically move in after a disaster to collect funds for non-existent charities and pocket the money.
Wasden offered these tips to help consumers give wisely:
1. Select a charity you already trust and donate directly to that charity.
2. Beware of telephone solicitors seeking money for disaster relief. You don’t know who they are and what they will do with your money. Many telephone solicitors will keep a substantial part of your donation as their own profit.
3. Don’t give your credit card number to a solicitor.
4. Never give cash. Contribute by check payable to the organization, never to an individual’s name.
5. Be wary of out-of-state organizations, especially if their only address is a post office (P.O.) box.
6. Before you agree to contribute, ask for and review the charity’s financial information. Request a copy of the organization’s annual report. Legitimate charities will gladly send you written information when requested.
7. Beware of pressure tactics. Reputable organizations won’t pressure you to give today. They will gladly accept your gift at a future date.
8. Some charitable groups employ paid telephone solicitors instead of using volunteers. If that’s the case, not all of your contribution will go to the hurricane victims.
9. Not all organizations soliciting are true charities eligible to receive tax-deductible contributions. Ask if donations are tax deductible. Verify information with the Internal Revenue Service.
10. Be wary of emotional appeals and organizations with vague plans for distributing the funds.
11. Do not judge an organization solely on a name that sounds impressive. Many organizations use names similar to well-known charities and organizations. Know who is asking for your money.
12. Do not respond to unsolicited e-mails seeking contributions.
13. If you receive e-mail claiming to show pictures of the disaster area, do not open the attachments. The files may contain viruses. Open attachments only from people you know.
14. Do not use a link to a charity’s Internet site that you receive by e-mail. It could be a scam to obtain your credit card number or steal your identity.
15. If you want to donate over the Internet, go directly to the Internet site of a charity you know and trust.
If individuals whom you suspect are engaged in deceptive charitable solicitations have contacted you, call the toll-free Consumer Protection hotline at (800) 432-3545. You can get information about national charities from the Better Business Bureau’s Wise Giving Alliance at (800) 575-4483.
