Tsunami Relief: Be an Informed Donor

by Center for Personal Finance editors

Individuals considering providing help for broad humanitarian relief to the 11 nations affected by the Dec. 26 tsunami along the Indian Ocean coast should make sure they donate funds through legitimate organizations.

Unfortunately, scams and fake organizations proclaiming to assist the tsunami victims already are siphoning funds intended for the victims.

According to Steve Delfin, executive director of the National Credit Union Foundation, donors should take responsibility for their giving decisions and research which charities they want to support.

"Information is available online from groups such as Charity Navigator and Give.org, where donors can do the research they should in order to make an informed decision," Delfin says. Delfin is a former disaster relief fundraising executive at the American Red Cross.

ePhilanthropy Foundation, based in Washington, D.C., offers 10 tips for safe online giving:

Know your charity. Some charities and charity Web sites have names that sound similar and you need to make sure the charity's a legitimate nonprofit. Before you give online, be familiar with the name and reputation of the charity you intend to support. If in doubt, check with your local United Way or Community Information Center. Give to legitimate charities. Only give to charities recognized by the appropriate governmental body in each respective country. Look for the charity to explain its tax-exempt nonprofit (NGO) status in a FAQ or similar area of its Web site. Some advocacy organizations are not allowed by law to issue tax-deductible receipts. You still may wish to support their work; however, understand before you make the gift what type of tax receipt you can expect. Feel free to ask questions. A legitimate charity seeking your support via the Internet or offline will provide ample opportunities to ask questions and learn about its mission. In the U.S., ask for the 990 Form, the document the charity files with the Internal Revenue Service each year. Nonprofit organizations are required by law to provide this information when asked. You can find a copy posted online at Guidestar. Give safely. Before entering sensitive information, verify that the page requesting your credit card information is secure (encrypted). The letters https://--rather than http://--should precede the page's URL and/or there should be an unbroken key or padlock symbol in the corner of the Web browser. If in doubt, contact the charity by telephone or by e-mail before you provide the information online. Consider giving directly. Don't get taken in by "charity" or "someone is in need" chain letters. E-mails that claim money will go to a specified charity each time the message is forwarded are not true. If your charity does not provide online giving opportunities at its Web site, consider giving through NetworkForGood.org, which provides all registered charities in the U.S. the ability to receive online donations. Demand privacy. Check for a privacy policy concerning the use of your name, e-mail address, or other personal information. Don't disclose personal information, such as your address, telephone number, Social Security number, or e-mail address--unless you know who's collecting the information and how they plan to use it. Keep records. Print a copy of the final confirmation screen that appears when you have made your gift and keep a copy of your charitable gift confirmation e-mail for your records. If you do not receive a confirmation of the gift by e-mail (and in most cases by mail as well), do not give to that charity online again. Look for contact information. A reputable charity will make contact information available in case you need assistance with questions, problems, or service. The charity should provide one or more ways to reach it offline as well as communicate with the charity directly online. Look for contact address, telephone, and e-mail address. Know how your money will be used. The Internet provides charities with an opportunity to share more of their work with the donor. Learn how the charity you contribute to plans to use the money you give to help others and fulfill its mission. If you are not certain how it will use your gift, ask. Request regular information. Your favorite charity should provide an opportunity to hear about its work regularly. On its Web site or through e-mail updates, the charity should provide information about how it fulfills its stated mission. You should receive these updates regularly; they should not be tied only to requests for contributions.

January 18, 2005