In the wake of the most powerful earthquake to ever hit Japan, many Americans want to help those impacted by the earthquake and the tsunami that followed. Better Business Bureau warns donors to exercise caution when making donations to relief agencies and charities.

As with every natural disaster, there are unscrupulous people who will attempt to take advantage of the public’s eagerness to help victims.

“In the face of any disaster, Americans will immediately step forward with donations to aid the victims and their families,” said Kim States, BBB President. “Unfortunately, we’ve seen time and time again that scammers will try to take advantage of the generosity of the public after a disaster; that’s why it’s so important to take your time and do your research before donating to relief efforts.”

BBB offers the advice for donors to ensure their donations go to trustworthy relief efforts.

• Before donating, visit www.bbb.org/charity to research organizations you’re considering supporting.
• Be wary of charities that are reluctant to answer reasonable questions about their operations, finances and programs.
• Ask for written information about the charity’s program(s) and finances such as the charity’s latest annual report and financial statements.
• Ask what the charity intends to do with any excess contributions remaining once they’ve fully funded the disaster relief activities mentioned in solicitations.
• Don’t give cash. Checks or money orders should be made out to the name of the charitable organization, not to the individual collecting the donation.
• Beware fake charities that imitate the name and style of well-known organizations in an attempt to confuse donors.
• Don’t give in to excessive pressure for on-the-spot donations. Be wary of any request to send a “runner” to pick up your contribution.
• Be wary of any charity that is inexperienced in carrying out relief efforts but is suddenly soliciting for aid in the wake of the earthquake and tsunami. Although well intentioned, they may not be able to quickly deliver aid to those in need.
• Be wary of appeals that are long on emotion, but short on describing what the charity will do to address the needs of victims and their families.
• Don’t give your credit card number or other personal information to a telephone solicitor or in response to an e-mail solicitation.
• Make sure your contribution is tax deductible: donations should be made to charitable organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code. Go to IRS Publication 78 on the IRS’ website for a current list of all organizations eligible to receive contributions deductible as charitable gifts.

For additional information you can trust when making giving decisions, or to view BBB Wise Giving Reports on charities across the nation, start with www.tucson.bbb.org/charity.

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…)

In the wake of any disaster, many reach for their checkbooks and donate money to aid and rescue organizations. The Better Business Bureau Wise Giving Alliance cautions, however, that the oil spill in the Gulf of Mexico is unlike previous disasters and offers specific advice to potential donors and volunteers.

“Although tens of thousands of individuals are already involved in the response to the oil spill, many others wonder how they can pitch in and help, whether it means writing a check or volunteering their time,” said Kim States, BBB President.  “Businesses, communities and wildlife across several states have been seriously impacted by the spill and the need for assistance is great. However, the constraints in the cleanup effort limit what charities can do with your money or how you can volunteer.”

BBB Wise Giving Alliance recommends that donors and volunteers consider the following:

• Beware of well-intentioned but inexperienced organizations – New non-profits and relief organizations spring up following any major disaster. While these groups might have the best of intentions, new charities responding to a crisis may lack the resources, experience and management needed to be effective.  Ideally, look for established organizations with environmental expertise or experience aiding Gulf communities.

• Understand where your money is going – Find out how the organization plans to spend funds for Gulf relief, ecosystem recovery and related activities.  Among the activities that charities are promoting, in addition to shoreline rescue and protection, are needs assessment, litigation, economic relief, advocacy for new governmental energy policies and research into long-term solutions to minimize effects of future disasters.  Ask whether the organization offers to restrict your donation for use in its Gulf-related activities or intends to use it for general support for all of its programs.

• Rely on expert opinion when it comes to evaluating a charity – Be cautious when relying on third-party recommendations posted on blogs or web sites, as the authors might not have fully researched the organizations they list.  The public can go to www.bbb.org/charity to research charities to verify that they are accredited by the BBB and meet the BBB’s 20 Standards for Charity Accountability.

• Find out if the charity is doing Gulf-related work or raising funds for other Gulf relief organizations – If a charity is raising money for other groups, you may want to consider “avoiding the middleman” and giving directly to those performing the work. Research ultimate recipients of the “middleman’s” donations to ensure that these organizations are equipped to do the job you want to support and are aware of the individual or organization soliciting on its behalf.

• Volunteering for Gulf clean-up may require special skills or training – Learn what qualifications are necessary before setting off for the site. If you’re looking to get your hands dirty, you’re out of luck unless you’re certified to handle hazardous materials or have received training to care for injured wildlife. In fact, Gulf residents are being told not to handle any tar balls that wash up on the beach or animals that might be affected by the spill.  Other volunteer opportunities may include shoreline monitoring, fund raising, office work, help in food programs for families in need and providing transportation. Numerous charities with volunteer programs ask that you register with them so that they can assess your skills and place you appropriately when openings arise. 

• There will be many opportunities to give, so keep checking – The Gulf region will be suffering from the effects of the oil spill for years to come and, as the situation unfolds, there will be more opportunities for donors to step in and help in the future.  If you can’t find a cause you can get behind right now, plan to revisit the possibility of making a donation or volunteering in the months to come.

BBB Wise Giving Alliance has compiled a list of nationally soliciting charities which meet BBB standards that are asking for donations and volunteers for the Gulf effort. More information and charity evaluations are available at www.bbb.org/charity.