In the wake of Hurricane Sandy threatening the northeastern regions of the U.S., BBB Wise Giving of Southern Arizona offers the following tips to help donors decide where to direct donations to assist hurricane victims:

Be cautious when giving online.
Be cautious about online giving, especially in response to unsolicitedspam messages, and emails and social media posts that claim to link to a relief organization. If you want to give to a charity involved in relief efforts, go directly to the charity’s website. In response to hurricanes Katrina and, Rita, and the Asian tsunamis, the FBI and others raised concerns about websites and new organizations that were created overnight, allegedly to help victims.

Rely on expert opinion when it comes to evaluating a charity.
Be cautious when relying on third-party recommendations such as bloggers or other websites, as they may not have fully researched the relief organizations they list. The public can go to www.tucson.bbb.org/charity to research charities and relief organizations and verify that they are accredited by the BBB and meet the 20 Standards for Charity Accountability.

Be wary of claims that 100 percent of donations will assist relief victims.
Despite what an organization might claim, charities have fund raising and administrative costs. Even a credit card donation will involve, at a minimum, a processing fee. If a charity claims 100 percent of collected funds will be assisting hurricane victims, the truth is that the organization is still probably incurring fund raising and administrative expenses.  It may use some of its other funds to pay these costs, but the expenses will still be incurred.

Find out if the charity has an on-the-ground presence in the impacted areas.
Unless the charity already has staff in the affected areas, it may be difficult to bring in new aid workers to provide assistance quickly.  See if the charity’s website clearly describes what the charity can do to address immediate needs.

Find out if the charity is providing direct aid or raising money for other groups.
Some charities may be raising money to pass along to relief organizations.  If so, you may want to consider “avoiding the middleman” and giving directly to those that have a presence in the region. Or, at a minimum, check out the ultimate recipients of these donations to see whether they are equipped to provide aid effectively.

Gifts of clothing, food or other in-kind donations.
In-kind drives for food and clothing, while well intentioned, may not necessarily be the quickest way to help those in need – unless the organization has the staff and infrastructure to distribute such aid properly. Ask the charity about its transportation and distribution plans. Be wary of those who are not experienced in disaster relief assistance.

Hurricane Isaac made its second landfall early Wednesday morning, continuing to thrash Louisiana with harsh winds, rain and flooding. While Isaac continues its destructive path, charities may soon begin soliciting for donations to support the relief efforts. With many options available for donors to consider, Better Business Bureau of Southern Arizona offer tips for donors looking to assist in the relief efforts.

BBB Wise Giving Alliance Standards for Charity Accountability were developed to assist donors in making sound giving decisions and to foster public confidence in charitable organizations. The standards seek to encourage fair and honest solicitation practices, to promote ethical conduct by charitable organizations and to advance support of philanthropy.

Before giving your donation, BBB recommends the following:

 
Research the organization. Check BBB’s Wise Giving Alliance at www.give.org to get reports on how national charities measure up to BBB Standards for Charity Accountability. Confirm the organization is registered with the IRS as a 501(c)(3) and make sure you’re satisfied with the programs and how the money is distributed. According to BBB’s Standards for Charity Accountability:

1. At least 65 percent of total expenses should be spent on program activities
2. No more than 35 percent of related contributions can be spent on fundraising
3. For local charities, ask for an annual report or a 990 IRS form to see a breakdown of where the money is allocated.

Be wary of imitations. Don’t be fooled by names that look impressive or that closely resemble the name of a well-known organization.
Avoid giving personal information over the phone. Since nonprofits are not required to use the “Do Not Call” list, you could receive a phone call asking for a donation. Avoid giving your personal information over the phone.
Be cautious of online or text message solicitations. Online giving can be very convenient, but avoid donating in response to unexpected text messages or emails that claim to link to a relief organization. Scam organizations with official looking names can be created overnight. If you want to give to a charity involved in the relief efforts, go directly to that charity’s website.

Avoid giving to charities that:

Use high pressure solicitations. A legitimate charity will be glad to give you the time needed to fully research its program.
Offer prizes. Most honest charities do not try to entice you to give by telling you that you have won a prize.
Steer you away from mailing a donation. Dishonest individuals try and avoid doing anything through the U.S. mail to avoid federal prosecution under postal statutes.
To check the reliability of a company and find trustworthy businesses, visit www.tucson.bbb.org.

If you are knee deep in debt and unable to pay your bills, credit counseling can be a financial lifesaver. A credit counseling agency may arrange a debt repayment plan, a creditor-approved arrangement that allows you to repay your unsecured debts at reduced interest rates.

In these plans, you deposit money each month with the counseling agency. Your deposits are used to pay your creditors according to a payment schedule the counselor develops with you. Some credit counseling agencies charge little or nothing for managing the plan; others charge a significant fee over time. Ask up front what the cost will be.

As part of the repayment plan, you may have to agree not to apply for, or use, any additional credit while you are participating in the program. A successful plan requires you to make regular, timely payments, and could take 48 months or longer to complete.

A debt repayment plan does not erase your credit history. Under the Fair Credit Reporting Act, accurate information about your accounts can stay on your credit report for up to seven years. In fact, creditors may report an account in financial counseling as payments missed, or that there are write-offs. But, a demonstrated pattern of timely payments should help you qualify for credit in the future.

If you want to work with a credit counseling agency, interview several. Check them out with your Better Business Bureau, state Attorney General, and local consumer protection agency. Any reputable credit counseling agency should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If not, consider that a red flag and go elsewhere for help.

Before you select a credit counseling agency ask for information on the following:

• Are the agency services confidential?
• Will they devise a plan tailored to fit your needs?
• Are the counselors certified?
• Are budget and credit education opportunities offered?
• Will your funds be protected? How?
• Is the agency accredited?