Avoid Charities Fraud: Donate Carefully

To Charities For Hurricane Relief

HARTFORD — In the wake of the tragic hurricane and flooding that have devastated New Orleans and significant parts of the Gulf Coast region, many Americans are opening their hearts and wallets in an effort to help in the recovery effort.

A number of established organizations are collecting funds, and dozens of new groups are mobilizing to collect contributions.

Department of Consumer Protection (DCP) Commissioner Edwin R. Rodriguez urges consumers to take a few moments to check out charities they may wish to support before making a monetary donation.

“The images of the devastation and the needs of our fellows are so overwhelming, we all want to help in some way,” Mr Rodriguez said. “But I must again remind Connecticut residents to be sure that their donations actually reach their intended cause, and not line the pockets of scammers trying to take advantage of this terrible tragedy. Anyone caught scamming under the pretense of this disaster will be prosecuted to the full extent of the law.”

Commissioner Rodriguez offers the following suggestions:

Donate to well-known, established charities. This is the best way to ensure that your donation is used appropriately. Governor Rell has posted the names of three major, reputable charities that are assisting in the disaster effort — the Salvation Army, AmeriCares, or the American Red Cross. The Governor’s web page, www.ct.gov/governorrell, has a link containing the addresses of these major organizations. In addition, 16 agencies have been designated by the Federal Emergency Management Agency (FEMA) as needing cash to assist victims of Hurricane Katrina. The names and telephone numbers of these organizations are available on the Department of Consumer Protection website at www.ct.gov/dep.

Do not respond to telemarketers. A disaster of this scope is sure to give rise to telephone, email, and direct mail solicitation. Some of these will be scammers looking to exploit your generosity for their own profit. Even if their cause is legitimate, anywhere from 5 to 90 percent of your donation may be used to pay the telemarketing company. Some bogus charities may have names that closely resemble the established, reputable funds. Choose your charity carefully and donate with confidence. Do not contribute to telephone, email, or mass mail appeals.

Before you give, verify the charity with the State’s Public Charities Unit. DCP runs this program in conjunction with the Office of the Attorney General. All legitimate charities that solicit in Connecticut must be registered with the Public Charities Unit in Hartford. Call 860-808-5030 to be sure the charity is registered. You will also be able to find out the percentage of each donation that is used by the charity for administrative costs, compared to the percentage that actually reaches the people you are trying to help.

Be careful about “Special Funds.” Many media outlets and Internet sites are promoting “special relief funds.” Some of these are designed to assist a specific group or population affected by the hurricane. Once you have determined that the charity is legitimate, when you write out your check to the special relief fund, be sure to specify “Hurricane Katrina Relief Fund” on your check. This will help to ensure that your donation is used only for disaster relief.

“The outpouring of concern and financial support for those affected by this tragedy is enormous, but unfortunately, the potential for fraud is high,” Mr Rodriguez said. “Let’s do everything we can do to ensure that the generosity of Connecticut residents is not abused.”