The recent catastrophic earthquake in Haiti has us all reaching for our wallets to lend a hand. A survey released last week by Zogby Interactive reported that two-thirds of U.S. adults have either made a donation or plan to do so in the future. As I write this, our country has donated over $305 million to relief efforts, according to a Chronicle of Philanthropy tally, and the money is still rolling in.
But when you give to any cause, you want to be sure that your money ends up in the right hands -- and gets there as quickly as possible. And that, unfortunately, is not always easy. Scam artists and hucksters abound after a disaster like this, with their palms open and ready to steal your donations, and frequently, your personal information. Not only does this take money away from the cause, it leaves people vulnerable to identity theft and taints their spirit of good will.
So if you're looking to donate, whether you have $5, $10 or $100 to spare, make sure you do it wisely. Here's what you need to know:
Be wary of solicitations. Suspicious links to Web sites are up 400 percent in the past few days, according to Proofpoint, a computer-security firm. E-mails asking for donations could very well be scammers fishing for your credit card number or other personal information, so never click on a link in a fishy e-mail to make a donation -- instead, type the address of the charity you'd like to support directly into your Web browser's address bar. There have also been reports of fraudulent e-mails from people posing as earthquake victims to solicit money. Don't bite.
And scams aren't restricted to the Internet, says Sandra Miniutti, Vice President at Charity Navigator. "The Red Cross is reporting that people are standing on street corners soliciting donations, and they're not necessarily their verified representatives." They may have good intentions -- to send the money they collect to the Red Cross -- but they could also be trying to profit off of this tragedy. Since you can't be sure, you're always better off donating directly.
Focus on established charities. New organizations sprout up all the time, and they need our support. Often, they are very reputable. But at a time like this, when large amounts of cash are needed urgently, you want to make sure that the groups you're donating to have the infrastructure to put your dollars to the best use. "First and foremost, we are advocating that people stick with charities that have responded to major disasters in the past, or that have experience working in Haiti," says Miniutti. To check out an organization before handing over cash, go to CharityNavigator.org, or Give.org, the charity Web site of the Better Business Bureau. Charity Navigator has compiled a long list of some highly rated groups who are collecting donations for Haiti, including AmeriCares, Doctors Without Borders, Hope for Haiti, Samaritan's Purse, World Vision, United States Fund for UNICEF, and, of course, the American Red Cross.
Cash is king. Most charities prefer a cash donation, rather than clothing, food or other supplies. "The problem with giving in-kind gifts is that while it might be convenient for you, these items have to be sorted and transported," says Bennett Weiner, chief operating officer of the Better Business Bureau's Wise Giving Alliance. If you don't have the money to give, consider having a yard sale or selling a few of your unwanted items on eBay and donating the profits to a charity, suggests Miniutti.
Understand how donations work via text. Your money will get there, but it may take longer than you think. "In general, what happens is the carriers hold the money and then forward the contribution on to the charity after you pay your bill. It can be as many as 90 days before the charity actually sees the money. But for this crisis, some carriers are forwarding 100 percent right away, some are forwarding 80 percent and withholding the other 20 percent until the charges clear," explains Miniutti. If you want your money working for the cause immediately, either call your wireless carrier and ask them when the donation will be made, or make the donation directly to the charity either online or by phone.
Keep up the good work. There tends to be a flurry of activity immediately following a disaster like this, and when it eventually seeps out of the evening news, the donations slow to a trickle. But Haiti is going to need your financial assistance for a long time -- right now, efforts are focusing on aid, but soon they'll need to shift to rebuilding the country. Give a little now, and a little later if you can. "Charities need cash now, but don't think you need to give as much as you can now. There will be opportunities to give later to other sectors that will be just as important," says Weiner.
Note: Congress just passed legislation that allows taxpayers to deduct contributions they make to Haiti relief programs before March 1, 2010 on their 2009 tax returns. In the case of text-message donations, a cell phone bill can serve as a receipt.
With reporting by Arielle McGowen
Jean Chatzky is the financial editor for NBC's "Today," a contributing editor for More magazine, and a contributor to "The Oprah Winfrey Show." She is the author of six books, including the book The Difference: How Anyone Can Prosper in Even the Toughest Times (Crown, March 10, 2009). To find out more and to read her blog, visit her Web site, www.jeanchatzky.com
