BBB Urges Consumers To Beware: Charity Scams Abound During The Holidays

St. Louis, Mo., Dec. 18, 2009 – The holiday spirit may prompt some people to let their guard down when they’re asked for a donation. The Better Business Bureau (BBB) encourages donors to be generous, but warns that scammers may take advantage of unwary consumers who are in a giving mood.

“In this economy, many people have less to give, so they will want to be sure that their donations are going to organizations that have earned their support,” said Jim Judge, Director of the BBB’s Charity Information Service in St. Louis.

“By taking the time to check a charity out with the BBB, donors can be confident that their money is going to organizations that have demonstrated transparency and adherence to BBB Standards for Charity Accountability,” Judge said.

The BBB is the nation’s oldest charity evaluator.  For national charities, BBB reports are available at www.bbb.org/charity and local BBB charity reports at www.stlouis.bbb.org/charity. Donors can download the Winter 2009 Wise Giving Guide to more than 500 charities in Eastern Missouri and Southern Illinois from the St. Louis BBB website.

Over the years, the BBB has seen unethical operators take advantage of donors in a variety of ways. For example, some police and fire groups have been known to spend up to 90% of money raised on fundraising costs.  The following is a list of five warning signs that a charity may not be on the up and up:

• High Pressure Tactics.  A hallmark of a poorly run organization or one trying to hide something may be pressuring donors to make split-second decisions without answering questions about how the donation will be used. These tactics often are used by for-profit telemarketers that work for charities and keep most of the money they collect for themselves.  A legitimate organization will answer any questions you have in hopes of gaining a loyal donor who will make repeat donations.  Remember, your money is just as good tomorrow as it is today, so take the time to research a charity before giving.

• Sound-A-Likes.  Verify the name of the organization before you make a donation, then check the name with the BBB to assure that they are a charity worthy of your money.  During the holiday season, charities with names that sound very similar to well-known organizations often blanket the area with ads and direct mail.

• They Only Accept Cash.  Be wary of donating to anyone who knocks on your door and claims to be soliciting for a charity. Be especially wary when a solicitor asks for only cash donations.  Often, these are scam artists posing as agents of a charity.    

• Sweepstakes.  Appeals that include sweepstakes promotions should disclose that you do not have to contribute to be eligible for the prizes offered. To require a contribution would make the sweepstakes a lottery through the mail, and it is illegal to operate a lottery through the mail.

• Unordered Merchandise.  It is against the law to demand payment for unordered merchandise. If items you did not order - such as key rings, stamps, greeting cards, or pens - are enclosed with an appeal letter, remember that you are under no obligation to pay for or return the merchandise. If payment is requested, inform your BBB.  In our experience, unordered merchandise can translate into high fundraising costs.

For more information on how to ensure that your donation gets into the right hands, visit the BBB’s Wise Giving Alliance at www.bbb.org/charity.

Contacts: Michelle Corey, President & CEO, 314-645-3300, mcorey@stlouisbbb.org or Jim Judge, Director of Charity Review, 314-645-3300, charity@stlouisbbb.org