Internet and Social Media Solicitations: Wise Giving Tips

Transcription

1 Internet and Scial Media Slicitatins: Wise Giving Tips Charities use a wide variety f methds t slicit charitable dnatins. New and pwerful technlgies utilize nt just the internet and , but als scial media and mbile phnes. Tday, a vlunteer can create a fundraising page and start sliciting n behalf f a charity in minutes. S, t, can a fraudster. T help charities and fundraising platfrms understand their rights and bligatins in this rapidly evlving fundraising envirnment, and t help dnrs make wise giving decisins, the Office f the Attrney General ffers the fllwing tips. - Tips fr charities [page 2] - Tips fr dnrs [page 4] - Tips fr fundraising platfrms [page 6]

2 2 CHARITIES Charitable fundraising can be cnducted nline in numerus ways: a charity can cnduct a fundraising campaign thrugh its website, scial media pages, s, r it can use a third-party fundraising platfrm t crwdfund a specific prject r campaign; a charity s supprters can fundraise thrugh s, scial media, r by initiating a peer-t-peer fundraising campaign thrugh a fundraising platfrm; r dnrs can search fr charities pre-listed n fundraising platfrms and make a dnatin withut the invlvement f the charity. N matter hw charitable dllars are raised nline, charities shuld keep these tips in mind: PROTECT YOUR BRAND! Defend yur charity s reputatin, brand, and fundraising strategy. Yur charity has the right t cntrl the use f its name and brand. Yur charity may want t establish a plicy as t wh can fundraise n its behalf and the prcess t receive authrizatin. In Cnnecticut, an individual supprter must get written cnsent frm a charity befre he r she uses its name when fundraising. If yur charity gives cnsent, fllw up with the supprter t verify that yur charity received all dnatins. Research yur charity s nline fundraising presence. It may be mre extensive than yu knw: Third-party fundraising platfrm websites prvide charities an pprtunity t cnnect with dnrs and fundraise nline, and allw individual supprters t raise funds fr their favrite causes thrugh peer-t-peer fundraising. Sme fundraising platfrms acquire a database f all tax-exempt charities and allw supprters t initiate peer-t-peer fundraising, even withut the charities knwledge. Find ut wh is fundraising fr yur charity and what infrmatin and representatins they are making n yur behalf. If yur charity wants t receive funds frm a fundraising platfrm that has yur charity pre-listed in its database, cntact the fundraising platfrm and claim wnership f yur charity s presence n that website, s the site has the crrect cntact and bank accunt infrmatin. If yur charity des nt want t be assciated with a fundraising platfrm, cntact them t request that they remve yur charity frm the website. When deciding t use a fundraising platfrm website, a charity shuld research the fllwing issues: What fees will the website deduct frm each cntributin? Will a charity be prvided with its dnrs infrmatin? Hw will the website use a charity s dnrs infrmatin? Is a privacy plicy in place? When will cntributins be depsited int a charity s bank accunt/mailed t the charity? Slicitatin laws in sme states require funds t be depsited in the charity s bank accunt within a few business days. What happens t cntributins that dn t meet a certain threshld amunt? What steps are being taken by the website t prevent slicitatin fraud?

3 3 What kind f accunting will the website prvide t a charity? If questins arise, what prcedures are available fr the charity t challenge the accunting? Cntact the fundraising platfrm and Office f the Attrney General if yu suspect any slicitatin fraud. By fllwing these tips, yur charity can fundraise smartly and safely nline.

4 4 DONORS Online fundraising allws dnrs t give t numerus causes with the click f a buttn. T help make an infrmed decisin n hw t dnate nline, dnrs shuld be aware f the fllwing: Make sure yu are dnating t a legitimate charity: If yu receive an r text message asking fr a dnatin, cnfirm that the request is frm the charity, and nt an impster, by cntacting the charity r visiting its website. Yu can als check ut the fllwing resurces t learn mre abut specific charities: State f Cnnecticut Department f Cnsumer Prtectin, IRS Select Check, BBB Wise Giving Alliance, Charity Navigatr, GuideStar, and Fundatin Center. Be cautius f lk-alike websites. These fraudulent websites will ften ask fr persnal financial infrmatin r may dwnlad harmful malware int yur cmputer. Watch ut fr charities with names that sund similar t well-knwn rganizatins. Smetimes these sund-alike names are simply intended t cnfuse dnrs. Dn t assume that charity recmmendatins n Facebk, blgs, r ther scial media have already been vetted. Research the charity yurself. Peer-t-Peer Fundraising: Individual supprters, like yurself, can raise mney fr charities thrugh peer-t-peer fundraising campaigns. Supprters can set up fundraising pages n fundraising platfrm websites t raise mney frm friends and family members fr their favrite cause. If yu want t set up a peer-t-peer fundraising page, please cntact the charity befrehand t get permissin t use its name and t make sure the representatins yu make n yur page are crrect. If yu want t make a dnatin n a peer-t-peer fundraising page, first make sure that yur dnatin is ging directly t the charity and nt the individual supprter. Additinal tips: Find ut what percentage f yur dnatin will g t the charity and whether yu will be charged any fees fr making a dnatin thrugh the fundraising platfrm website. Find ut what the website will d (if anything) with yur persnal infrmatin; be wary f websites that d nt prvide a privacy plicy. Be cautius when cnsidering giving t newly frmed charities since they wn t have a track recrd that yu can take int cnsideratin. Be extra vigilant when dnating nline in the wake f natural disasters r natinal tragedies. Sme charities are frmed shrtly thereafter and may have the best f intentins; hwever, an existing charity is mre likely t have the sund management and experience t quickly respnd t these situatins, and it will have a track recrd which yu can review.

5 5 Als, be aware f sham charities that pp up t take advantage f peple s genersity during these times. Yu may want t give t a specific prgram r purpse within a charity; fr example, disaster relief. If a website has a dnate buttn, see whether yu can designate a specific purpse fr yur dnatin. If yu can t, cntact the charity t be sure yur dnatin will be spent fr the purpses yu intend. Sme charities sell merchandise nline and claim that 100% f the prceeds will benefit the charitable purpse. But 100% f the prceeds des nt necessarily mean 100% f the sales price. Cntact the charity t ask hw much f each purchase it will receive. If they cannt give yu an answer, cnsider dnating anther way. If yu are cnsidering making a gift t an individual r family, instead f an established charity, please keep the fllwing infrmatin in mind: Ask the fundraiser whether there is a trust r depsit accunt established fr the individual s r family s benefit. Cntact the banking institutin t verify the existence f the accunt, and check lcally t cnfirm that there really is such a need. D nt give cash. Cntribute by check that is payable t the fund, nt t an individual, and mail directly t the fund. Cntributins earmarked fr relief f a particular individual r family are nt tax deductible, even if they are made t a qualified charitable rganizatin. Ask whether the charitable cntributin is tax deductible, and verify with yur tax advisr r the IRS. The fact that a charity has a tax identificatin number des nt necessarily mean yur cntributin is tax deductible. Ask fr a receipt shwing the amunt f the cntributin and stating that it is tax deductible. If yu wish t establish a fund t assist victims f a tragedy, be especially careful t respect the wishes f the victim s family and friends. The law requires that yu have written permissin t use the names r phtgraphs f any persn r rganizatin in yur fundraising appeals, and yu may als have t register with yur state charity regulatr befre any slicitatins ccur. Be specific and transparent abut hw the funds will help victims r their families and hw quickly cllected funds will be distributed. Be clear in yur fundraising appeal frm the beginning if there are multiple purpses fr the fund, such as funding future cmmunity needs related t the tragedy. Many dnrs give with the expectatin that all funds will be distributed quickly and slely t victims and their families.

6 6 FUNDRAISING PLATFORMS Online fundraising, especially peer-t-peer fundraising, is a relatively new methd f charitable fundraising. As a third-party fundraising platfrm, yu are giving charities and their supprters new pprtunities t cnnect with dnrs. T ensure that yu are acting t the maximum benefit f the charities and dnrs using yur website, fundraising platfrms shuld fllw these tips: Cnduct basic due diligence t discurage ptentially fraudulent uses f yur platfrm. Verify n the IRS website that a charity is tax-exempt and that cntributins are tax deductible. Cnfirm the charity s registratin status in the states in which it must register. Cnfirm that a persn claiming t wrk fr a charity is actually assciated with that charity. Verify that any bank accunt infrmatin is assciated with a charity, nt an individual. Obtain each charity s written apprval befre cllecting funds fr it. At least 38 states require express/written permissin frm a charity befre its name is used in cnnectin with a slicitatin. Educate the charities and their supprters wh fundraise n yur website. Prminently disclse what type f vetting, if any, takes place befre a charity can participate n yur website. Explain hw ften dnatins will be frwarded t a charity. Clearly state if there is a minimum amunt f cntributins required befre dnatins will be frwarded and what happens if that amunt isn t met. Be transparent abut any transactin fees and the prtin f a dnatin that actually reaches the charity. Prmptly remve any charity that asks t be remved frm yur website. Prvide cntact infrmatin n yur website specifically fr charities t ask questins r t reprt fraud. Establish and display a privacy plicy fr dnrs infrmatin and make sure any persnal r financial infrmatin yu cllect abut dnrs r charities is secure. Develp and fllw plicies and prcedures that can help yu detect mre sphisticated attempts at fraud. Review and test yur plicies and prcedures regularly and fix flaws as they becme knwn. Fundraising platfrms shuld als be aware f pssible legal requirements: Charitable fundraising laws vary frm state t state. Yu may be classified as an unregulated vendr, r a mderately regulated cmmercial c-venturer r prfessinal fundraising cnsultant r fund-raising cunsel, r a mre actively regulated cmmercial fundraiser r prfessinal slicitr. Make sure yu understand yur legal status and any crrespnding reprting r cntractual respnsibilities in each state that yu perate. If yu fall under the legal definitin f a prfessinal fundraising cnsultant r fund-raising cunsel r cmmercial fundraiser r prfessinal slicitr, make sure yur cntracts with the charities are in writing and include all f the language r disclsures required by state law.

7 Be cperative with charity regulatrs and law enfrcement if they cntact yu with basic questins abut hw yur fundraising platfrm wrks r with infrmatin abut a ptentially fraudulent user f the platfrm. 7