Tsunami Appeals May Not All Be Charitable

Donors, beware.

As Americans mobilize to help victims of the massive tsunami that struck southern Asia, con artists are also probably springing into action -- bent on turning the sympathy and generosity of donors into easy paydays for themselves.

“Events like this tsunami tend to bring people out of the woodwork who want to take advantage of donors’ good intentions,” said Suzanne Coffman, spokeswoman for the charity watchdog GuideStar, which keeps a national database of information on charitable groups.

Crooks will probably blanket telephone lines and Internet sites with emotional appeals to give. Many of these pleas are aimed at getting credit card or bank account information, as well as cash.

That amounts to stealing -- not only from donors but also from tsunami victims, who won’t get the aid intended for them, Coffman said.

In addition to the con artists, there are legitimate organizations soliciting aid that cannot provide effective relief because of their inexperience, despite what may be good intentions, said Bennett Weiner, chief operating officer of the Better Business Bureau’s Wise Giving Alliance in Washington.

Fledgling aid groups, or ones thrown together to funnel money to the disaster area, are unlikely to have the infrastructure in place to get people, medicine, food and other supplies to remote areas in countries with geographic and political hurdles, he said.

“In this particular circumstance, it makes sense to give to established organizations,” Weiner said. “They not only have a track record that you can check, but they are also more likely to reach the people who need help.”

Here are some tips to make sure your donations are not squandered or stolen:

* Check out the charity.

There are at least two dozen established charities already in southern Asia working to provide emergency shelter, food and medical care. Prospective donors can find a list of these charities and what type of help they provide on the Wise Giving Alliance website at www.give.org. GuideStar also has a listing of charities working on tsunami relief at www.guidestar.org. The federal government’s relief page at usafreedomcorps.gov provides tips on giving and information about what organizations are involved in specific projects in the affected countries.

The GuideStar and Wise Giving Alliance sites provide links to individual charity sites, where donors can give directly or simply gather more information.

* Don’t be pressured.

Legitimate charities working in southern Asia say the need, although immediate, is also long term. It will take years to rebuild some areas and get residents back on their feet, aid organizations say. The opportunity to help will not evaporate in a day, week or year.

Consider excessive pressure to be a red flag, Coffman said, adding that legitimate charities will take “no” for an answer. Weiner said to be particularly wary of charities that offered to send a messenger to pick up your donation or didn’t want to let you off the phone before getting your credit card number.

* Demand details.

Appeals that are high on emotion and short on detailed explanations of what the charity does are probably cons, Coffman said. Charities can and should clearly explain how they provide help and what they will do with donations if they have more than what is needed to address the immediate crisis.

Other questions to ask: How long has the charity operated in the affected area? How many people does it have on the ground? What services does it provide -- medical, food, shelter? What percentage of contributions goes to programs versus the charity’s overhead? At the least, such answers can help donors target their gifts.

* Beware of boiler rooms.

Unsolicited phone calls and e-mails can be trouble, experts said. Don’t give out credit card or bank information to such requests, Weiner said, and don’t respond to an e-mail that urges you to click a link in the message -- that’s probably a scam, he said. To make sure you are not directed to a bogus site, use your browser to go directly to a charity’s website, Weiner said.

Those who are tempted to give to an unsolicited appeal should ask about how they can get additional information. Confirm that the charity has a so-called information card -- required by the state of California -- and ask that the group mail one to you or tell you where you can find it (such as on a website).

Check to see whether the organization is rated by any of the charity watchdog groups. If you suspect a boiler room, ask for a number where you can call back in a day or two.

* Make sure donations are deductible.

Charities listed on the GuideStar and Wise Giving Alliance websites are all Internal Revenue Service approved. That means donors can deduct the amount of their contribution on their annual tax returns, assuming that they itemize deductions. The IRS also has a listing of approved nonprofits on its website at www.irs.gov. Look for “Publication 78.”

Kathy M. Kristof, author of “Investing 101” and “Taming the Tuition Tiger,” welcomes your comments and suggestions but regrets that she cannot respond individually to letters or phone calls. Write to Personal Finance, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012, or e-mail kathy.kristof @latimes.com. For previous columns, visit latimes.com/kristof.