As scammers seek to exploit holiday generosity, Better Business Bureau of Southern Arizona urges consumers to protect well-intentioned donations.

According to the Nonprofit Research Collaborative’s November 2010 Fundraising Survey, the majority of all charitable contributions are made in the last quarter of the year—October to December. Not surprisingly, scammers ramp up efforts during this time in hopes of snagging funds for themselves.

“Charities rely on giving season donations for the following year,” said Kim States, BBB President. “When fraudulent charities or dishonest solicitors intercept donation dollars, it leaves legitimate organizations and those they serve in a difficult position.”

BBB Foundation’s Charity Review Program, which has comprehensive local Charity Reviews, has compiled top tips to protect consumers and their donations:

Verify Validity: Don’t let emotional appeals and high pressure tactics dictate donations. Visit tucson.bbb.org/charity to research local BBB Charity Reviews. Utilize online search engines and databases like GuideStar.org and CharityNavigator.org.

Spotlight Spending: According to BBB’s 20 Standards of Charity Accountability, publicly soliciting charities should spend at least 65 percent of total expenses on program activities. Be leery when solicitors declare that all proceeds go to the cause, but fail to substantiate claims. Seek out the Internal Revenue Service Form 990 from publicly soliciting charities; this form should be made available with appeals.

Protect Payments: Avoid giving cash and make checks payable to charities, not individual solicitors. Always request receipts or confirmation codes for donations.

Find more wise giving tips and BBB Charity Reviews at tucson.bbb.org/charity or give.org

Have you recently received one of those plastic envelopes from Cell Phones for Soldiers, with the tag line “Help Our Troops Call Home!”? I received one, too, and wondered how that organization would actually use the phones: Would they sell them and make money to pay for the overseas calls by soldiers, install service on the phones and give them to a platoon, or give the soldiers the phones when theirs break?

For that matter – can soldiers carry cell phones when they are active military?

When I looked up the charity using the BBB Wise Giving Alliance (WGA), I found a report that said Cell Phones for Soldiers did not provide the requested information – therefore the WGA couldn’t evaluate the charity.

I’m always a little suspect when a charity or business doesn’t give information to be evaluated. So, I dug a little deeper. I checked Guidestar, which has a lot of 990s (an IRS tax form for charities) on file. The address on the plastic envelope I received is Dexter, Michigan, but the address on Guidestar is in Massachusetts.

The mission statement says “Organization raises funds to provide funds to pursue its mission as stated in its bylaws of providing aid to service men and women this is achieved by donations from the public of money and cell phones which are sold in a recycling program.” (sic)

In 2008 the organization brought in more than $2.7 million in contributions and grants, of which $1.7 million was from cell phones. They spent $1 million on pre-paid calling cards (which we would assume (more…)

The holiday shopping season is in full swing and will peak within the first week of December.  If you are planning to buy gifts online or from Infomercials on television, Better Business Bureau has a warning about the way retailers make money on your orders by charging separate shipping and handling fees. And regardless of where you order from, BBB cautions that shipping service phishing scams are intended to steal your identity or infect your computer.

Some retailers are finding ways to make extra money with special promotions such as “order now and we’ll double your order,” or “buy now and we’ll include a free gift” – it may sound like a good deal at first, until you realize that you will be charged separate shipping and handling fees on each item, including the “free” gifts and the “bonus” products.  All of these shipping and handling fees can actually add up to more than the total cost of the products you’re ordering.

Recent consumer complaints allege deceptive advertising and sales practices, which include failing to disclose shipping and handling fees prior to purchase, and charging fees for products advertised as “free.”

BBB Tip – If you are buying online or by telephone, make sure you know the full cost of shipping and handling before you authorize the transaction and your credit card is charged.

With only a few weeks left to get holiday cards and gifts sent to loved ones, another risk consumer’s face is phishing scams. Scammers are pretending to be customer service personnel from some of the biggest names in business—including FedEx and UPS. Hackers are impersonating well-known companies in order to gain access to your computer drives, files and accounts to steal your personal information including Social Security, bank or credit card numbers.

Hackers send phishing e-mails from “shipping companies” claiming that there is a problem with package delivery. Commonly, the e-mail will include a hyperlink for recipients to click on that will take them to another Website that might install malware or solicit personal information. A message currently making (more…)