BBB Signals Warning on Charitable Solicitations

Baltimore, MD - May 20, 2009 - BBB | Greater Maryland applauds yesterday's announcement by the Federal Trade Commission (FTC) and government agencies over concerns about solicitations made by police, firefighter and veterans' organizations. BBB Wise Giving Alliance and BBBs nationwide receive over 130,000 inquiries annually from donors who want to know how a police, firefighter or veterans' charity stacks up to BBB Standards for Charity Accountability .
 
"For many years, BBBs across the U.S. have received numerous reports about questionable practices of unscrupulous operators seeking to take advantage of American generosity and concern for police officers, firefighters and veterans in their communities," said Angie Barnett, president/CEO, BBB | Greater Maryland.  
 
Locally, BBB's Educational Foundation offers Greater Maryland charities a free Charity Review Program and, for a small fee, a Charity Seal Program. Participating charities are evaluated on financial activity, board oversight, honesty and integrity in donor solicitations and the charity's commitment to donor privacy. This unbiased review process can assist trustworthy charities by encouraging donor confidence.
 
Practices common to police, firefighter and veterans' organizations that concern BBB include:

• High fund raising costs with little remaining to assist the named cause;
• Excessive pressure in telephone fund raising appeals; and
• Lack of clarity about what programs donations will be assisting.
  
  A consumer booklet by the BBB Wise Giving Alliance, "Donating to Police and Firefighter Organizations" is available online for free at www.bbb.org/us/Police-Firefighter-Charities and offers giving advice for vetting solicitations. Also available online at www.bbb.org/us/WGA-Senate is the BBB Wise Giving Alliance testimony on Assessing Veterans' Organizations given to the U.S. House of Representatives Committee on Oversight and Government Reform in December 2007. The testimony includes additional BBB guidance about veterans' groups.
   
   "Certainly, police, firefighter and veterans' charities fill an important need in society for current and former members of the armed services, police, firefighters and their families," said Barnett, "and we are pleased that a number of these charities meet our standards.  However, we also have some concerns."
   
  BBB offers the following tips to help donors make wise pre-donation decisions when considering police, firefighter, or veterans' charities:
   
  
• Check with Outside Sources Before Giving. Visit the BBB Wise Giving Alliance online at http://www.bbb.org/charity to access detailed charity reports and giving advice. Donors can also check out charities with Maryland's Office of the Secretary of State, Charitable Organization Division.  
  
• Mistaken Identity.  Just because the organization includes the words "police" or "firefighter" in the name it does not mean that any member of the local force is involved. Also, many veterans' charities include virtually the same words in different order or slightly different form.
  
• Telemarketing Cautions. Telemarketing can be a costly method of fund raising unless carefully managed. If called, don't hesitate to ask for written information on the charity's programs and finances. 
  
• On-the-Spot Donation Decisions. Be wary of excessive pressure in fund raising. Don't be pressured to make an immediate on-the-spot donation. Charities should welcome gifts whenever provided.
  
• Donating Cars. Find out how much of the auction price for donated cars actually goes to the charity. Sometimes the charity receives only a small portion of the resale price. Also be mindful of the latest IRS rules on deductibility of such gifts.
  
• Clear Program Descriptions. Look for a clear program description of the organization's activities in its appeals and Web site. For example, if it says it is helping veterans, does it explain how (e.g., financial, housing, and/or counseling, etc.) and where it is doing so?