Attorney
general urges contributors to research charities before donating,
opens investigation of potential charitable scam targeting Illinois
residents
[November 23, 2013]CHICAGO — Attorney General Lisa
Madigan announced Friday that her office has opened an investigation
into improper fundraising tied to relief efforts underway in
Washington and other downstate Illinois communities hit by Sunday's
tornadoes and severe storms. Madigan urged Illinois residents who
want to donate to the recovery efforts to be cautious in their
giving.
"Unfortunately, in the wake of such devastation, we almost always
receive reports of questionable fundraising efforts that try to take
advantage of people wanting to help," Madigan said. "My office is
investigating a complaint, and we will continue to monitor for
improper fundraising efforts and possible scams connected to the
disaster relief underway. I urge anyone who wants to donate to
carefully research the organizations they intend to give to so they
know their contribution will directly benefit the victims of
Sunday's storms."
Madigan's Charitable Trust Bureau received a complaint regarding
Heroes Memorial Foundation, an unregistered, out-of-state entity
raising funds for victims of the weekend storms. Under Illinois law,
fundraisers and charitable organizations are required to register
each year with the attorney general's office. Investigators from
Madigan's office also are assisting local authorities in Washington
to monitor for consumer scams related to recovery and rebuilding
efforts.
To assist potential donors in making wise giving decisions, the
attorney general's office provides
important financial information
about charitable organizations, such as income, expenditures and
programs.
To best ensure that your donation will be used for its intended
purpose, the attorney general suggested the following tips:
Ask how much of your donation will go to the charity and how much
will be used to pay fundraising costs.
Solicitors must give you
this information if you ask.
Pay close attention to the name of the charity.
Some
fraudulent charities use names that sound or look like those of
legitimate organizations, to mislead you.
Ask detailed questions about the charity.
Donate only when
your questions have been answered and you are certain your money
will be used according to your wishes. Ask questions like whether
the charity is registered with the Illinois attorney general's
office and what percentage of the money the charity takes in goes to
fundraising, administration and charitable programming.
Do not pay in cash.
For security and tax record purposes, pay
by check. Be sure to write the full official name of the charity on
your check — do not abbreviate.
Request written information.
A legitimate charity will
provide you with information outlining its mission, how your
donation will be distributed and proof that your contribution is
tax-deductible.
Do not donate if the solicitor uses high-pressure tactics, asks
for cash payment or insists on sending someone to pick up your
donation.
These are all hallmarks of a scam.
If you receive an email or text message asking for a donation,
confirm that the request is from the charity
by contacting the
charity or visiting its website.
Do not assume that charity recommendations on Facebook, blogs or
other social media have already been vetted.
Donors may also consider giving to a specific program or purpose
within a charity — for example, disaster relief. If a website has a
"donate" button, see whether you can designate a specific purpose
for your donation. If you cannot, contact the charity to be sure
your donation will be spent for the purposes you intend.
The attorney general's office also advised that donors should be
wary of requests for clothing, food or other questionable in-kind
donations. Unless the charitable organization has the staff and
infrastructure to distribute such aid, the donations may be more of
a burden than a help. Ask the charity about their transportation and
distribution plans. Be wary of those who are not experienced in
disaster relief assistance.
Madigan encouraged donors to report suspicious solicitations to
her office's Charitable Trust Bureau by calling 312-814-2595.
Madigan recommended that, whenever possible, keep notes detailing
the date and time of the call, the organization's name, and the name
of the solicitor. She also suggested trying to remember the "pitch"
as well as any other pertinent information.
