BBB Advice on Giving to Hurricane Relief Charities
New York, NY – August 30, 2011 – In the wake of damage caused by Hurricane Irene, Americans are responding with generous donations, as they’ve traditionally responded to disasters throughout the world in the past. But even when needs are close to home, givers should take steps to assure themselves that their donations will go to legitimate charities and relief efforts that have the capacity to help victims, cautions the Metro New York Better Business Bureau.
“Donors naturally want to respond quickly to disasters, so they sometimes forget to check on the charity before giving,” says Claire Rosenzweig, President and CEO of the BBB of Metropolitan New York. “Find out what charities are doing to respond and how long their relief work might last. When you know what to expect, you can be more confident that your gift to a disaster relief charity will truly help those who need your support.”
BBB offers the following tips to make the most of your hurricane relief donation:
Take a moment to learn about the charity. The best way to avoid being disappointed in helping storm and flood relief charities is to find out more about the charity before making the donation. Review the charity’s website and go to BBB charity review sites such as www.newyork.bbb.org and www.bbb.org/charity to discover more about the charity and verify its accountability. You can also verify charity tax exempt status through the IRS at www.irs.gov. Look for charities that already have the capacity to aid victims of the affected regions.
Identify what stage of relief the charity intends to provide. There are three general stages to disaster relief efforts. Ask about which of these stages the charity will address. The Emergency Response stage involves immediate rescue needs and takes place within the first week of the storm or flood. Next, Disaster Relief occurs in the first month or longer, and includes providing temporary shelter, food and water, urgent medical assistance, and clothing to displaced people. Finally, the Recovery Stage can last well over a year and involves clean up, repair and/or rebuilding homes, and other long-term recovery needs.
Find out if the charity is providing direct aid or raising money for other groups. Some charities may be raising money to pass along to relief organizations. If so, you may want to consider “avoiding the middleman” and giving directly to charities that have a presence in the region. Or, at a minimum, check out the ultimate recipients of these donations to ensure the organizations are equipped to provide effective aid.
Be aware of limitations when donating by text. Texted donations are popular and can help to raise money for relief efforts. But your contribution may be limited to a small amount, and can take months to be applied to the cause. Your gift may go into action faster, with fewer restrictions, if you contact the charity directly to make a website or telephone donation.
Watch out for claims that 100 percent of donations will assist disaster victims. Proceed with caution if you hear this dubious claim from a charity. Virtually all charities have expenses such as fund raising and administrative costs. Even a credit card donation will involve, at a minimum, a processing fee. Some operating expenses are necessary for a charity to function and can be perfectly legitimate. But a reasonable amount of your donation should be benefiting the cause. BBB Standards for Charity Accountability note that at least 65 cents out of every dollar donated should go to a charity’s programs and services. You can ask a charity to give you information about this. Consider your gift carefully, if you find out that a very small percentage of donations is actually being used for disaster relief.
Check to see if the charity is registered to solicit donations in your state. Most states require charities to register with a state agency (usually the Attorney General’s office or the Secretary of State’s office) in order to solicit charitable contributions. Contact your appropriate state agency to determine if the soliciting storm relief charity is properly registered. New York State charity registration information is available through the New York State Attorney General’s Charities Bureau at www.charitiesnys.com. Watch out for newly created entities that do not have a track record or experience in providing disaster relief.
You gift can help now – and later. Charities that respond to disasters are usually not able to address all the needs or serve all the victims immediately. It takes time to identify victims and to understand all the relief implications. Donations often come fastest in the first few weeks following a disaster – but the need for donations may last for quite a while longer, as the relief effort unfolds. If you are not able to make a disaster donation right away, it may not be “too late” to give at a future moment. Check with the charity at the time of your donation to understand whether they are still responding. Ask the charity whether it can still accept disaster-related donations. The charity should be able to tell you clearly how your gift will be used when it is made.
For more information or to schedule an interview, contact Luana Lewis at 212.358.2842 or llewis@newyork.bbb.org.
About the Education and Research Foundation of the BBB of Metropolitan New York
Metro New York’s BBB Foundation is a 501(c)(3) nonprofit organization established in 1969. It provides educational programs and services for charities, consumers, and businesses; encourages informed consumer support of charities; promotes charity transparency and accountability; conducts research; and provides educational intern opportunities to students who are potential charity and business leaders. It operates the New York Philanthropic Advisory Service (NYPAS), which publishes BBB reports on 775 Metro New York area charities. This charity review program does not rank charities, but rather seeks to assist donors in making informed judgments by providing objective reports based on charity performance against the BBB’s 20 BBB Wise Giving Alliance Standards of Charity Accountability. Charities that meet all of the BBB’s 20 Standards are eligible to participate in its BBB Accredited Charity Seal program. The BBB Wise Giving Alliance produces reports on over 1,300 nationally soliciting charitable organizations. Additional charity reports are available through other local BBBs. The outcomes of local and national BBB charity reviews are available online at www.newyork.bbb.org and www.bbb.org/charity.
