After a terrible and public tragedy such as a mass shooting, people may want to help in any way possible. Unfortunately, scammers take advantage of these moments of vulnerability to deceive donors.
In addition, there are campaigns set up by well-meaning individuals who may or may not be directly connected to the tragedy. Even if organizers mean well, there can be confusion when new charitable organizations crop up.
Potential donors must consider that established charities can be more likely to have the experience to quickly address difficult circumstances and have a track record that can be evaluated. A newly-formed organization may be difficult to check out and may not be well-managed.
Some families of victims may decide to set up their own assistance funds. Donors should be mindful such funds may not be set up as charities, and may not operate under guidelines of best practice and transparency. Also, if 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.
Certain advocacy groups may request donations when tragedies that involve violent acts with firearms occur. Donors can support these efforts as well, but note some of these advocacy groups may not be tax exempt as charities or strictly follow standards expected of charitable organizations.
Before giving, check out BBB Charity Reviews, which let donors know whether a charity has complied with BBB Standards for Charity Accountability, 20 standards designed to show that a charity is transparent about its operations and fundraising and that it follows good governance practices. Charities that meet all standards qualify as BBB Accredited Charities.
BBB has more than 11,000 Charity Reviews, covering local as well as national nonprofit organizations.
BBB offers the following tips to potential donors:
Thoughtful giving: Take the time to check out the charity. Do your research 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. Visit bbb.org to verify if a charity meets the BBB Standards for Charitable Accountability.
Crowdfunding: Keep in mind some crowdfunding sites do very little vetting of individuals who post for assistance after a tragedy or a disaster, and it is often difficult for donors to verify the trustworthiness of crowdfunding requests for support.
How will donations be used?: Watch out for vague appeals that do not 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.
Online caution: Never click on links to charities on unfamiliar websites or in text messages or email. These may take you to a look-alike website where you will be asked to provide personal financial information, or may download harmful malware onto your computer. Do not assume that charity recommendations on social media have already been vetted.
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 without having to wait until the audited financial statements are available sometime in the future.
Tax deductibility: Not all organizations collecting funds to assist after a 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 or family are not deductible as charitable donations, even if the recipient organization is a charity.
Sean Spence is the Mid-Missouri regional director for Better Business Bureau.