Years ago I served as the treasurer of the ministerial alliance in our town. I soon learned that some people had become highly skilled in separating well-meaning Christians and even churches from their money!
Good stewardship takes seriously Jesus’ admonition to give “to the least of these.” But good stewardship also is careful to give to legitimate causes and persons. Because Christians take seriously their opportunities and responsibilities to help others, they are sometimes victimized by unscrupulous con artists. Those seeking financial assistance for themselves or on behalf of others have learned to play on the sympathies and guilt of church staff and individual Christians to get the money they want.
Jim White
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Although it is tempting to refuse to give without knowing the person and the circumstance, being so tight-fisted sometimes causes us to refuse those with legitimate needs. Recognizing the dilemma in which churches sometimes find themselves, the Better Business Bureau of Central Virginia has provided some practical advice that will be helpful both to both churches and individual Christians as they seek to help those in need.
Tom Gallagher, president and CEO of BBB serving Central Virginia, notes that events like the freeing of the three women held captive for a decade in Cleveland create enormous sympathy, but he cautions against giving unless you are confident that your money will be used for the purpose you give it. “Be on the lookout for questionable solicitors and scammers” he advises. “Call BBB or check bbb.org before you donate.”
The BBB Wise Giving Alliance offers 10 tips to educate donors, avoid problem appeals and give with confidence.:
1. Thoughtful giving. Take the time to check out the charity to avoid wasting your generosity by donating to a questionable or poorly managed effort. The first request for a donation may not be the best choice. Be proactive and find trusted charities that are providing assistance.
2. State government registration. About 40 of the 50 states require charities to register with a state government agency (usually a division of the state attorney general’s office) before they solicit for charitable gifts. If the charity is not registered, that may be a significant red flag.
3. Respecting victims and their families. Organizations raising funds should get permission from the families to use either the names of the victims and/or any photographs of them. Some charities raising funds for the Colorado movie theater victims did not do this and were the subject of criticism from victims’ families.
4. How will donations be used? Watch out for vague appeals that don’t identify the intended use of funds. For example, how will the donations help victims’ families? Also, unless told otherwise, donors will assume that funds collected quickly in the wake of a tragedy will be spent just as quickly. See if the appeal identifies when the collected funds will be used.
5. What if a family sets up Its own assistance fund? Some families may decide to set up their own assistance funds. Be mindful that such funds may not be set up as charities. Also, make sure that collected monies are received and administered by a third party such as a bank, CPA or lawyer. This will help provide oversight and ensure the collected funds are used appropriately (e.g., paying for counseling, medical treatment and other needs).
6. Advocacy organizations. Tragedies that involve violent acts with firearms can also generate requests from a variety of advocacy organizations that address gun use. Donors can support these efforts as well but note that some of these advocacy groups are not tax exempt as charities. Also, watch out for newly created advocacy groups that will be difficult to check out.
7. Online cautions. Never click on links to charities on unfamiliar websites or in texts or emails. These may take you to a lookalike website where you will be asked to provide personal financial information or to click on something that downloads harmful malware into your computer. Don’t assume that charity recommendations on Facebook, blogs or other social media have already been vetted.
8. Financial transparency. After funds are raised for a tragedy, it is even more important for organizations to provide an accounting of how funds were spent. Transparent organizations will post this information on their websites so that anyone can find out and not have to wait until the audited financial statements are available sometime in the future.
9. Newly-created or established organizations. This is a personal giving choice, but an established charity will more likely have the experience to quickly address the circumstances and have a track record that can be evaluated. A newly-formed organization may be well-meaning but will be difficult to check out and may not be well managed.
10. Tax deductibility. Not all organizations collecting funds to assist these victims are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code. Donors can support these other entities but keep this in mind if they want to take a deduction for federal income tax purposes. In addition, contributions that are donor-restricted to help a specific individual/family are not deductible as charitable donations, even if the recipient organization is a charity.
The Better Business Bureau was established in 1954 to advance responsible, honest and ethical business practices and to promote customer confidence through self-regulation of business. Churches may benefit from their experience in helping their own members become more efficient stewards of their giving. You can check out a business or charity’s review at www.richmond.bbb.org or by calling 804.648.0030.
Jim White ([email protected]) is executive editor of the Religious Herald.