BBB Warns of Charity Scams, Offers Giving Tips in Wake of Boston Marathon Bombing

At least one poorly-conceived charity scam has already emerged in the wake of the explosions at the finish line of the Boston Marathon yesterday, and more are likely. BBB Wise Giving Alliance (“Alliance”), the national charity monitoring arm of the Better Business Bureau, and your BBB cautions donors about potential red flags concerning tragedy-related philanthropy.


BBB Wise Giving Alliance urges donors to give thoughtfully and avoid those seeking to take advantage of the generosity of others:

BBB Wise Giving Alliance: Ten Tips for Giving with Confidence

1. Thoughtful Giving

Take the time to check out the charity to avoid wasting your generosity by donating to a questionable or poorly managed effort. The first request for a donation may not be the best choice. Be proactive and find trusted charities that are providing assistance.

2. Help Spread the Wise Giving Word

Remind your friends and family to be cautious about giving requests in the wake of such a tragedy and ask them to spread the word as well. People are emotionally moved by events like these and may react before they have time to carefully consider.

3. State Government Registration

About 40 of the 50 states require charities to register with a state government agency (usually a division of the State Attorney General’s office) before they solicit for charitable gifts. If the charity is not registered, that may be a significant red flag.

4. Respecting Victims and Their Families

Organizations raising funds should get permission from the families to use either the names of the victims and/or any photographs of them. Some charities raising funds for the Colorado movie theater and Newtown school victims did not do this and were the subject of criticism from victims’ families.

5. How Will Donations Be Used?

Watch out for vague appeals that don’t identify the intended use of funds. For example, how will the donations help victims’ families? Also, unless told otherwise, donors will assume that funds collected quickly in the wake of a tragedy will be spent just as quickly. See if the appeal identifies when the collected funds will be used.

6. What if a Family Sets Up Its Own Assistance Fund?

Some families may decide to set up their own assistance funds. Be mindful that such funds may not be set up as charities. Also, make sure that collected monies are received and administered by a third party such as a bank, CPA or lawyer. This will help provide oversight and ensure the collected funds are used appropriately (e.g., paying for funeral costs, counseling, and other tragedy-related needs.)

7. Online Cautions

Never click on links to charities on unfamiliar websites or in texts or emails. These may take you to a lookalike website where you will be asked to provide personal financial information or to click on something that downloads harmful malware into your computer. Don’t assume that charity recommendations on Facebook, blogs or other social media have already been vetted.

8. Financial Transparency

After funds are raised for a tragedy, it is even more important for organizations to provide an accounting of how funds were spent. Transparent organizations will post this information on their websites so that anyone can find out and not have to wait until the audited financial statements are available sometime in the future.

9. Newly Created or Established Organizations

This is a personal giving choice, but an established charity will more likely have the experience to quickly address the circumstances and have a track record that can be evaluated. A newly formed organization may be well-meaning but will be difficult to check out and may not be well managed.

10. Tax Deductibility

Not all organizations collecting funds to assist this tragedy are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code. Donors can support these other entities but keep this in mind if they want to take a deduction for federal income tax purposes. In addition, contributions that are donor-restricted to help a specific individual/family are not deductible as charitable donations, even if the recipient organization is a charity.

Other Resources:

BBB Wise Giving Alliance is asking anyone who receives a suspicious charitable solicitation to report it to BBB Report a Scam.

The FBI has the lead investigative role following the bombing. Anyone who has information, visual images and/or details regarding the explosions should call 1-800-CALL-FBI (800-225-5324), prompt #3. The FBI says no piece of information or detail is too small.

The American Red Cross says it has enough blood and financial resources committed to Boston at this time, but asks that people make appointments to give blood in the weeks and months ahead.

Boston Mayor Thomas M. Menino offers the Mayor’s 24-Hour Hotline at 617-635-4500 for anyone with concerns about their family members or friends who were at the race.

The Mayor’s office also suggested resources from the National Association of School Psychologists to help children deal with tragedies.

Tackling Holiday Gift Returns

Do you have a return or exchange policy? Are you already dreading the post holiday gift returns? It’s important for businesses to keep their customers in mind when it comes to their return policy. 

BBB recommends that businesses consider the following when creating, solidifying or simplifying their return policy:


Make sure the customer is aware of your policy. Display your policies at the checkout counter and on your website.  

Provide gift receipts. Six out of ten shoppers say they include a gift receipt when giving a gift, so be sure to offer one at the time of purchase.

Encourage customers to return the merchandise unused, unworn or unwrapped. Everyone likes getting merchandise in its original package and by encouraging customers to return goods this way, you better your chances that the product can be resold.

Make online returns easy. Lay out the return rules clearly. Explain who pays for the return shipping, where the customer sends the return, and any forms or mailing labels you want them to use.

Stay calm and helpful. The holidays can be a stressful time for everyone and making returns is usually not high on the customer’s list of fun things to do. When working with a customer, always go into a return with a smile. If their experience is good, you may win over a new customer.

Encourage Charitable Giving At Your Office

December is a critical fundraising month for charities. Many businesses and organizations make year-end gifts for tax reasons, or to extend the holiday spirit.  Employees and employers who pool their efforts to support a cause, either with their time, money or in kind donations, can make a positive impact for struggling families over the holidays.

BBB Wise Giving Alliance recommends the following ways that small business owners can spread the holiday spirit around the office:

Institute a volunteer day. Giving to a charity doesn't have to mean pulling out the checkbook. Many charities also rely heavily on the gift of time from volunteers. An office wide volunteer day is a great way to get employees out of the office and working together on something they can be proud of.

Rally around one cause with an office fundraiser. Office bake sales, silent auctions and tag sales are just a few ways to raise money for a charity. If everyone gets involved, then the nickel and dimes can add up to a healthy donation to a needy organization.

Collect food or toys. Around the holidays, many charities are looking for non-perishable food donations or toys. If everyone in the office donates a can of food or a toy, those items can collectively make a huge difference for a less fortunate family's holiday season.

Offer a matching program. Small business owners can encourage employees to make donations to charities by matching their contributions. Matching programs allows individual employees to choose a cause that might be near and dear to their own heart. By matching their donations, small business owners can show they support their employees with the added benefit of a tax deduction.

Educate employees to be wise givers. Encourage employees to research their charities first with the BBB Wise Giving Alliance before they give. BBB Wise Giving Alliance evaluates more than 1,200 national-soliciting charities against 20 rigorous accountability standards.

For more advice on holiday charitable giving from the BBB Wise Giving Alliance, visit bbb.org/charity.

#GivingTuesday

Black Friday and Cyber Monday kick off the holiday shopping season, but Tuesday, November 27 marks the start of the giving season. Called #GivingTuesday, it is focused on bringing awareness to charities and holiday giving.

This Tuesday, nonprofit organizations, charities, families, businesses and individuals are coming together to transform the way people think about, talk about and participate in giving this season. #GivingTuesday is backed by 800 sponsors ranging from nonprofits to large corporations, including Sony and Discover.

If you plan on donating this holiday season, be sure to check with the BBB Wise Giving Alliance before giving.  The Alliance helps donors make informed decisions on donating and advances high standards of conduct among nonprofit organizations.

Will you participate in #GivingTuesday?

(Note: Sony Electronics and Discover are BBB Accredited Businesses.)