Category: Wise Giving Wednesday

According to a news story appearing in the Richmond News in British Columbia, Canada, an animal welfare charity was recently targeted by a fraud scheme and wants to get the word out to help prevent other nonprofits from being victimized. The charity was contacted by an individual via email claiming to want to make a $95,000 gift as instructed by their late partner for the purpose of taking care of the decedent’s dog. The charity then received a letter, supposedly from a law firm, which included a check, supposedly from the Ontario Ministry of Finance.

Once the organization deposited the check and began using the funds for renovation of their cat sanctuary, the “lawyer” contacted the charity claiming that there had been a mistake and asked for a $70,000 refund. Fortunately, before they “refunded” any funds, their bank notified the organization that the check was fraudulent and contacted the police and the Canadian Ministry of Finance. 

While this charity didn’t lose any money to the fraudsters, the bad news is they had already started using the phony “windfall” funds on their cat sanctuary improvements, with no way to recoup the money. 

Reporting a Fake-Donation Scam

It’s hard to believe that it’s been 40 years since some of the biggest names in music took to the stage at London’s Wembley Stadium and John F. Kennedy Stadium in Philadelphia, linked by satellite on July 13, 1985. Live Aid, a massive concert which was also broadcast to over 1.9 billon worldwide, raised over $125 million for famine relief in Africa, not to mention awareness of the issues of global poverty and hunger. Organized by musicians Bob Geldof and Midge Ure, Live Aid, performers included a laundry list of stars with more than 70 performers and lasted over 15 hours. Mick Jagger and Tina Tuner stole the show in Philadelphia, along with performances from Bob Dylan and Santana. Across the pond in London, in a show opened by Princess Diana and Prince Charles (now King), Tina Turner teamed up with Mick Jagger for a duet with Elton John, Paul McCartney and David Bowie in the mix. Perhaps the most iconic of all was the set by Queen which included anthems “We Are the Champions” and “We Will Rock You.”

From Live Aid to Today: Benefit Concerts Carry the Torch

Live Aid also inspired future fundraising events like Farm Aid and America: A Tribute to Heroes (for 9/11 relief). More recently, the Concert for the Carolinas, with notables James Taylor, Luke Combs and Billy Strings, raised money for relief in the wake of Hurricane Helene, which devastated Western North Carolina last September. Billie Eilish, Sting and Rod Stewart are a few of the artists who teamed up for FireAid to benefit the Southern California wildfires. There will surely be events in the wake of Central Texas floods earlier in July.

In the age of smartphones and instant access to so much information, taste in music and entertainment is no longer limited to what you hear on the radio or see on MTV. Platforms such as SoundCloud allow anyone to upload their creations, regardless of merit. While some critics believe there will never be a concert as big and influential as Live Aid, the reach of streaming platforms and social media make these events possible, and there are big stars with a lot of reach still out there.

Planning a Benefit Concert? Here Are 5 Wise Giving Tips

Cass served as CEO of the American Heart Association from 1998 to 2008 and was key in helping to consolidate the regional offices of that charity into a more streamlined and efficient structure.

I first met Cass many years ago, during a speaking engagement with the National Health Council, which held meetings for executives from health-related charities. He was approachable, patient, and very knowledgeable.

He strongly believed in the importance and value of charity accountability and ethics. When BBB Wise Giving Alliance launched the BBB Accredited Charity Seal program in March 2003, Cass attended our press conference in Washington, DC, and made sure that American Heart Association was among the first charities to participate in this optional program for charities that meet all of the BBB Charity Standards.

1. 1. Visit the charity’s official website directly. Check out the charity’s website on your own. Avoid misdirection to a quick gift link or a false payment account by visiting the charity’s actual website. There you can confirm the actual payment account and also find out more about their accomplishments, finances, and governing board.

2. 2. Double-check the charity name to avoid confusion. Beware of charity name confusion. Some charities have similar sounding names. Sometimes this is because they are raising funds for a similar cause, but other times a questionable solicitor may be seeking to confuse you. To avoid this potential problem, take a moment to confirm that the charity you have in mind is the one soliciting you.

3. 3. Use verified accounts within mobile payment apps. Carefully search the mobile payment system to see if they have a list of verified charity accounts to help ensure the charity account address you have been provided is correct.

4. 4. Confirm government registration status. About 40 of the 50 states in the U.S. require charities to register with the attorney general’s office or secretary of state. You can verify an organization’s charitable tax-exempt status at this IRS link. In Canada, check with the Canada Revenue Agency.  Keep in mind that registration does not mean the government agency recommends or approves the charity.

5. 5. Look up the charity at Give.org to verify their trustworthiness. Visit charity reports on Give.org to verify if the organization meets the 20 BBB Standards for Charity Accountability (i.e., a BBB Accredited Charity). There is no charge to charities for accreditation and the resulting reports are available free on Give.org. Also, review this page on Give.org for tips on donating to animal-related charities.

How to Report Charity Scams

• Review charity websites: Most charities, even new ones, will have a website with basic information about the organization such as goals and activities. Look for specifics.
• See if the charity is registered in your state: Close to 40 U.S. states require charities to register with state government officials before soliciting for donations, usually done through the office of the Secretary of State or Attorney General. For specifics, visit the National Association of State Charity Officials.
• Look for a board roster: Even new charities will have a board of directors, which has final say concerning operations and staff oversight. Look at charity websites to see if the board members and their professional qualifications are listed. It’s best to give to groups led by those who have the qualifications to address the charity’s mission.
• Be wary of emergency appeals: If you receive fundraising appeals from charities raising funds for disasters or emergency needs, the organization should be able to substantiate that the timing and nature of its expenditures are in accordance with what is specified in their appeals. You want to make sure the charity is doing what they say they will do, when they say they will do it. Also note that that new charities may have a hard time addressing emergency situations in some cases. If possible, find out what connections, resources, or skills the charity has to address the situation.
• Locate the privacy policy: Make sure charities provide a clear and accessible privacy policy on their website. We recommend that the privacy policy include the following elements:
  • How to contact the charity to review personal information, if any, is being collected about them by the charity and how this information will be used
  • How to contact the charity to review personal information collected and request corrections
  • How to inform the charity (e.g., a check-off box) that the visitor does not wish to have their information shared outside the organization
  • What security measures the charity has in place to protect personal information
• Check Trusted Sources: As always, we recommend visiting our A-Z National Charity Reports. While we don’t generally report on charities that are less than 1 year old, once a charity has been established and has completed its first IRS Form 990 and financial statement, they are eligible to be evaluated.

Attorney General Keith Ellison alleged that Give Hope was involved in transactions that conflicted with businesses affiliated with the Ingrams, including the charity reimbursing their for-profit restaurants for food, grocery and toiletry items during the COVID-19 pandemic. The transactions failed to abide by Minnesota Nonprofit Act requirements.

Allegations of Improper Governance and Oversight

In addition to the allegations involving conflicts of interest, additional allegations by Attorney General Ellison indicated that Give Hope’s board of directors:

BBB Wise Giving Alliance has 20 Standards for Charity Accountability, which address many of the governance issues above. Our Accredited Charities meet all 20 Standards including BBB Charity Standard 1 which calls for the board of directors to provide adequate oversight over the operations and staff of the charity (including the appointment of a treasurer). In addition, BBB Charity Standard 5 addresses conflicts of interest and calls for no transactions in which any board or staff member have material conflicting interests with the charity resulting from any relationship or business affiliation.