As rescue and recovery efforts continue across the Philippines in the wake of Super Typhoon Haiyan, people all over the world are looking for ways they can help. Many will be searching out relief organizations or charities with the tools and resources to make an immediate difference. Better Business Bureau of Minnesota and North Dakota (BBB) is advising people to take the time to ensure their donations reach the intended recipients, and warning that – as so often occurs in these situations – scammers will likely emerge to try and siphon funds from those in desperate need of them.
“The effects of this tragedy will be felt for months and years to come,” said Dana Badgerow, President and CEO of BBB of Minnesota and North Dakota. “The first challenge will be to provide sufficient food and shelter for the displaced for the next several months. From there, the arduous process of rebuilding not just communities, but lives, will begin.”
The BBB offers the following tips to help donors decide where to direct donations and ensure that their money provides the most benefit to victims of these disasters:
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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 might not have fully researched listed charities. The public can go to give.org to research charities and verify that they meet the BBB Wise Giving Alliance’s 20 Standards for Charity Accountability.
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Find out who will benefit from the donations and what type of assistance they will be provided.
Ask the charity where it will concentrate its efforts and what support and services it will provide to those who need assistance.
Be wary of claims that 100 percent of donations will assist 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 given charity claims 100 percent of collected funds will go towards assisting 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 expenses will still be incurred. Wise Giving Alliance Standards state that at least 65% of the funds a charity raises should go to the intended recipients.
Be cautious of emails that claim to show pictures of the disaster areas in attached files because the files may contain viruses.
Learn the facts about donating via text message.
Text messaging has become a very convenient way for people to donate “on the go.” By texting a specified keyword to a short code phone number, a set charge (generally $10) is added on to a person’s cellphone bill, with the cellphone carrier, in turn, passing those funds along to the charity. Visit mobilegiving.org for more information.
Be cautious when giving online.
Be cautious about online giving, especially in response to spam messages and emails that claim to link to a relief organization. In the past, after other disasters, the BBB was contacted by consumers with concerns about many websites and new organizations that were created overnight allegedly to help victims.
If tax deduction is a concern, use the IRS as a resource.
To help ensure your contribution is tax deductible, the donation should be made to a U.S.-based charitable organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code. Go to IRS Publication 78 on irs.gov for a current list of all organizations eligible to receive contributions deductible as charitable gifts.
The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. We are open 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at bbb.org or 651-699-1111, toll-free at 1-800-646-6222.
