Top 10 tips to avoid Haiti relief scams

Published: Jan 13, 2010 at 11:03 AM PST Last Updated: Jan 13, 2010 at 12:37 PM PST
Top 10 tips to avoid Haiti relief scams
In this image made available by the American Red Cross in London, Wednesday, a young earthquake survivor is given first aid in a shanty town on the outskirts of Port au Prince following a major earthquake.(AP Photo/Matt Marek/American Red Cross, ho)

In the wake of the devastating earthquake in Haiti on Jan. 12, 2010, many Americans are looking for ways to help by donating to a charity. Fraudulent charities will likely emerge trying to scam donations from well-meaning Americans.

Top 6 tips from Better Business Bureau | Top 4 tips from Oregon's attorney general

Press release courtesy Better Business Bureau

As immediate relief needs are assessed in the wake of the devastating earthquake in Haiti on Jan. 12, 2010, many Americans are looking for ways to help by donating to a charity. Your Better Business Bureau Foundation warns that -- as occurred following the tsunami in 2004 and Katrina in 2005 -- fraudulent charities will likely emerge trying to scam donations from well-meaning Americans.

"Whenever there is a major natural disaster, be it home or abroad, there are two things you can count on. The first is the generosity of Americans to donate time and money to help victims, and the second is the appearance of poorly run and in some cases fraudulent charities," said Robert W.G. Andrew, CEO of BBB serving Alaska, Oregon, and Western Washington.  "Not only do Americans need to be concerned about avoiding fraud, they also need to make sure their money goes to competent relief organizations that are equipped and experienced to handle the unique challenges of providing assistance."

BBB Foundation offers the following six tips to help Americans decide where to direct donations:

  1. Rely on expert opinion when it comes to evaluating a charity. Be cautious when relying on third-party recommendations such as bloggers or other Web sites, as they might not have fully researched the listed relief organizations. The public can go to www.bbb.org/charity to research charities and relief organizations to verify that they are accredited by BBB and meet the 20 Standards for Charity Accountability.
     
  2. Be wary of claims that 100 percent of donations will assist relief victims. Despite what an organization might claim, charities have fundraising 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 earthquake victims, the truth is that the organization is still probably incurring fundraising and administrative expenses. They may use some of their other funds to pay this, but the expenses will still be incurred.      
     
  3. Be cautious when giving online. Be cautious about online giving, especially in response to spam messages and e-mails that claim to link to a relief organization. In response to the tsunami disaster in 2004, there were concerns raised about many Web sites and new organizations that were created overnight allegedly to help victims.
     
  4. Find out if the charity has an on-the-ground presence in the impacted areas. Unless the charity already has staff in the effected areas, it may be difficult to get new aid workers to quickly provide assistance. See if the charity's Web site clearly describes what they can do to address immediate needs.
     
  5. 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 charities that have a presence in the region. Or, at a minimum, check out the ultimate recipients of these donations to ensure the organizations are equipped to effectively provide aid.
     
  6. Ask before giving 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 be able to properly distribute such aid. Ask the charity about their transportation and distribution plans. Be wary of those who are not experienced in disaster relief assistance.

Press release courtesy Oregn attorney general

Oregon Attorney General John Kroger is warning Oregon consumers to be on the lookout for unfamiliar organizations soliciting funds for victims of the recent earthquake in Haiti. Scammers exploit current events – from fears about a swine flu pandemic to the sale of Michael Jackson memorabilia – to defraud consumers.  Scammers will seek to gain access to credit card numbers and bank accounts in order to commit identity theft. Unscrupulous charities may also seek donations, even though only a small percentage the money will actually be used to help earthquake victims.
 
Many legitimate organizations are seeking donations to aid victims of the devastating earthquake in Haiti.  To confirm that a charity is registered, visit the Oregon Department of Justice web site: www.oregonattorneygeneral.gov. To help consumers distinguish worthy charities from con artists and unscrupulous non-profits, Attorney General Kroger offers the following tips:  

  • Do not give out personal information such as credit card or bank account numbers over the phone. Legitimate charities will accept contributions by check, which should always be made payable to the organization not the person collecting the donation. 
     
  • Beware of callers who want your money fast. When solicited by phone, always ask the caller to send you written materials about the charity. No legitimate organization will insist that you donate immediately. Watch out for solicitors who employ dramatic, emotional or heart-tugging stories.
     
  • Do not donate cash. Legitimate charities will be pleased to receive a contribution by check. Don’t send contributions with a “runner,” by wire or overnight parcel pick-up service.
     
  • Be sure you are contributing to a legitimate organization registered with the Attorney General’s Office by searching the Department’s online database or by calling 971-673-1880. You can also visit www.guidestar.org, a national clearinghouse of information about charities and their performance. 

 
Scammers, identity thieves and unscrupulous charities pose a significant threat to Oregon consumers. Last year, more than 150 Oregon consumers reported falling victim to some kind of a scam. The Oregon Department of Justice, a national leader in policing non-profits, also took legal action against more than 20 non-profits for using misleading solicitations. 
 
The Oregon Department of Justice is committed to protecting Oregon consumers. Anyone who thinks they may have been contacted by a scammer should call Consumer Protection Hotline at 1-877-877-9392 or go to the Oregon Department of Justice Web site.