Attorney General Stumbo Issues Consumer Warning About Charitable Giving on behalf of Storm Victims

FRANKFORT, KY (September 14, 2005) – Attorney General Greg Stumbo today encouraged Kentucky residents wanting to donate to disaster relief efforts to do so, but cautioned residents to be aware of organizations that may be involved in hurricane relief scams. “Kentuckians are generous and want to help those who have suffered so grievously from Hurricane Katrina,” Stumbo said. “However, Kentuckians should be alert and give to organizations that are actually providing help to those in need, and not to the unscrupulous who would take advantage of the situation.”

Already, the use of fake donation websites and false donation foundations has been reported. These sites are reportedly being used to gain money, capture user names and passwords and install spyware or Trojan software on your machine. Attorney General Stumbo recommends the following steps to ensure that donations help disaster victims.

• Give to charities with an established track record. The American Red Cross, the Salvation Army, and the United Way of America are a few of the many worthy established charities that are working on disaster relief. Other charities are listed on the FEMA website at www.fema.gov.
• Designate your gift. Many charities will place money in their general fund, and decide how to best apply it to serve their mission. Decide if you want to support the charity generally or their hurricane Katrina relief effort specifically. Ask if your donation can be earmarked specifically for hurricane Katrina relief efforts.
• Beware of telemarketers and email solicitations. Many telephone and email solicitations are scams that will not use the money for the purposes requested. Do not give your credit card or bank account information over the internet or telephone in response to a solicitation, but instead place a call directly to the organization (or go to the organization’s website) to make a donation.
• Research the charity or fundraiser before you give. Make sure you know exactly what organization you’re giving to. Beware of sound-alike names for established charities. Ask if you are giving to a fundraiser or charity and how much of the donation goes to the charities’ program activities versus administration or fundraising, especially if you are not giving to an established organization or one whose work you are familiar with. Even legal fundraisers often keep 25% to 99% of your donation for the paid solicitors. Consumers may research the fundraiser and the solicitor at http://ag.ky.gov/cp/charity.htm or at www.charitynavigator.org or www.guidestar.org. Kentucky law requires a professional solicitor who is collecting funds on behalf of a charity to register with the Office of the Attorney General, post a bond, and submit to a background check to ensure that there are no felons soliciting funds. Also, a solicitor must identify the charity for which he or she is collecting and, if asked, must reveal if he or she is being paid to solicit and the percentage of donation received.

“I encourage the public to be informed and never assume that a person calling or coming to the door asking for donations is a charity volunteer,” Stumbo said. “Before you give, make sure you’re dealing with a legitimate charity. Consumers have the right to know that their hard-earned donations are being put to good use.”