Western Union and Better Business Bureau Warn of Charity Scams During Giving Season

The holidays bring out the best in people, and many charities count on end-of-year generosity from donors to meet the needs of those less fortunate.   Sadly, scammers know this and prey on unsuspecting consumers who don’t do their homework when giving money to charities.  Scammers solicit by phone and email, or post links to fraudulent charities on social media sites with names similar to those of legitimate organizations.  In some cases, scammers even pose as legitimate charities, in one variation of the so-called imposter scam.

Western Union and Better Business Bureau launched BBB Scam Stopper to help consumers reduce their chances of becoming a victim of common scams.  “We urge donors to give thoughtfully, and to be wary of scams this holiday season,” said Art Taylor, President and CEO of BBB Wise Giving Alliance, “It’s important to check out a charity first, and make sure you are giving to a charity that will use your donation wisely.” BBB’s give.org has reviews of more than 11,000 charities.

Here are tips to consider when giving money to charities:

 

·         It’s best always to donate to a charity directly after confirming its legitimacy – rather than giving in response to a phone call or by clicking an email link.

·         Never send a money transfer to an individual for a charity.  Western Union does accept donations for charities, but the money transfer must be sent to the organization, not to an individual.

·         Never share banking or credit card information with a person or business you don’t actually know.

·         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.

“Resist rushing.  If a charity is legitimate, they’ll accept your donation any time,” said Shelley Bernhardt, Director of Consumer Protection at Western Union.

For more information visit westernunion.com/stopfraud or, to test your knowledge of scams, take the Fraud Quiz: westernunion.com/fraudquiz.

To learn more about which charities meet BBB Wise Giving Alliance standards, go to give.org. 

Help Your Employees Share the Holiday Spirit

According to a report from Giving USA, charitable giving grew by about 3.5 percent last year, totaling $316.23 billion. Much of the giving takes place during the holidays and businesses often lead the way.

There are more ways to spread holiday cheer to the less fortunate than simply donating money, however. One way is to harness your employees’ natural desire to help others.

BBB has the following tips for businesses looking to help employees share their time, talent and treasure:

Match donations. One way to encourage cheerful giving is to match a portion of your employees' local charity donations.

Ask for employees’ charity recommendations. Invite your employees to select a charity as a group and promote their cause throughout the holiday season. Not only will this help the charity of your choosing, but your business may benefit from the brand awareness created by aligning yourself with a worthy organization.

Do some research. Learn how the organization uses the donations it receives by reviewing its BBB Charity Report online at www.give.org. Avoid giving to the wrong charity. Check the name of the organization closely to ensure you are giving to the right one, rather than a similarly-named organization that might not be legitimate.

Offer time off for volunteering. Consider giving employees paid time off for volunteering for charities. BBB gives employees 16 hours of paid leave for charity volunteer work. Employees have a year to utilize those hours for any charity they want to support. Call the charity directly and ask them if there are opportunities available and make it a company event. Consider wearing matching clothes with company logo to identify your business while you volunteer to market your brand.

Pick a cause you believe in. One great way to get motivated is to find an organization that appeals to the same demographic as your business. For example, if you sell clothing, consider aligning yourself with a children’s or women’s shelter where your donation directly impacts the individuals there.

Hold a food drive. BBB encouraged staff to donate to a local food bank last year by holding a team contest on who could collect the most food items. The prize was minimal, but in the end, the contest netted 1,425 pounds of food for families in need.

Partner with a charity. Supporting a fundraising event such as a toy or food drive can be a source of good public relations. Businesses can donate time, floor space or promote volunteering among the staff.

How do you spread the holiday cheer?

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.

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.)