Following the earthquake in Haiti, a number of charitable organizations, large and small, are soliciting donations for the relief effort.  How do I decide where to give? - Angela

As of Jan. 21st, over $355 million in donations have been made to 32 U.S. based non-profit organizations for Haitian relief efforts. The good news is that there are a lot more people like Angela who want to offer financial assistance. The bad news is that with the outpouring of support also comes an increase in fraud. 


Let’s start with the basics. How can you tell which organizations are legitimate?

Most importantly, focus on those organizations that were around before the earthquake struck and avoid web-based organizations which may have cropped up recently. Additionally, take advantage of the experts in this area. There are several watchdog sites which evaluate and rate charitable organizations, including:

• Better Business Bureau’s Wise Giving Alliance (www.bbb.org).
• Charity Navigator (www.charitynavigator.org), an independent organization which evaluates the financial health of over 5,000 U.S based charities.
• Serve.gov: A federally-sponsored Web site dedicated to helping individuals find volunteer opportunities in their communities and worldwide. 

When reviewing these ratings, look for organizations in which at least 65 percent of their total expenses go towards program activities (with the remainder going towards fundraising and administrative expenses). Some of the bigger charitable organizations which fall into this category include the American Red Cross, United States Fund for the United Nations Children’s Fund (UNICEF), Oxfam America and Save the Children.


I heard you could text a donation to the Red Cross.  Is that true?

Yes, there are actually a number of prominent fundraising campaigns out there which enable you to give by text, web, phone and of course, old-fashioned mail. As you mentioned, the American Red Cross is accepting donations through mobile texting. To make a $10 dollar contribution, simply text “Haiti” to 90999 and your mobile bill will be automatically charged. This amount may not sound like much, but according to the Red Cross, a $10 donation can provide a family clean drinking water or other supplies needed for everyday living.  Then, American Airlines is offering its frequent-flier program members mileage incentives for contributing to the American Red Cross. Through February 28th, members can earn a one-time bonus of 250 miles for a minimum donation of $50 or 500 miles for a donation of $100 or more. (Of course, you can also donate by visiting their Web site at www.redcross.org or by calling 1-800-REDCROSS.) Additionally, former Presidents Bill Clinton and George W. Bush have partnered to raise money for the Haitian relief, and you can learn more about their efforts at www.ClintonBushHaitiFund.org. 


With so many fundraising efforts out there, what are some of the signs that you are being scammed?

First and foremost, like legitimate solicitations for aid, unseemly requests can come in the form of email, social networking sites like Facebook, telephone or even door-to-door contact. So, if it is an organization you do not recognize, be sure to request written material before agreeing to give money. And never reply back to an email soliciting your help if they require you to send detailed personal information like your bank account number or Social Security number. 

You also should:

• Take your time, Steer clear of any solicitor or organization which pressures you to make a quick decision about giving. 
• Confirm tax deductible status. If you want your contribution to be tax deductible, be sure to confirm the tax status of the aid organization which is available on the Internal Revenue Service Web site (www.irs.gov). In order to claim the deduction, .....

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