August 23, 2004
Consumers should be cautious of potential charity scams in connection with Hurricane Charley. Scam artists may take advantage of the situation by creating bogus fundraising operations.
One way to be sure your contribution goes where it's intended is to stick with verified charities, like the American Red Cross, which is on the scene in Florida and urgently seeking donations.
Be wary of appeals that tug at your heart strings, especially pleas involving current events, the Federal Trade Commission (FTC) warns. If you are asked to contribute to a charity, the FTC recommends that you:
• Ask for the name of the charity if the telemarketer does not provide it promptly;
• Ask what percentage of your donation will support the cause described in the solicitation;
• Verify that the charity has authorized the solicitation;
• Do not provide any credit card or bank information until you have reviewed all of the information from the charity and made the decision to donate;
• Ask for a receipt showing the amount of the contribution and stating that it is tax-deductible; and
• Avoid cash gifts. For security and tax record purposes, it is best to pay by check made payable to the beneficiary, not the solicitor.
"Unfortunately, there are always scam artists who try to make illegal profits from the pain of others. We saw it after 9/11, we saw it after the Columbia shuttle disaster," said Arkansas Attorney General Mike Beebe, who said his state is often a target of scam artists.
"It is critical for donors to make certain that they do not give in to high-pressure tactics and that they give wisely," Beebe said.
