SCAM
ALERT
BY BRYDEN GAGE | 
|  |
Recently, researchers from the University of British
Columbia did an experiment. The plan was to
give $5 to $20 to several students to either spend
on themselves or to spend on others. The results of the survey
showed that the more people spent on others, the higher
their happiness rating.
So maybe money does buy happiness, after all. The caveat?
Don’t spend it on yourself!
While it is good to give, it is important to know who gets
the money. For every legitimate organization raising funds
for a valid cause, there are scam artists who impersonate
charities in an effort to take advantage of people’s generosity
and make a tidy profit for themselves.
Then there are charities that may give a portion of donations
to the actual cause, but not necessarily the amount
donors would consider acceptable. When making a donation,
ask how the funds raised are distributed. In some cases,
a high percentage of the funds are used for administration,
marketing or fundraising, leaving a small amount for the
cause.
If you plan to donate money this spring, the BBB would
like to offer the following advice:
- When in doubt, check it out. When an unfamiliar organization
asks you for a donation, don’t give without gathering
details about the charity, the nature of its programs and its
use of funds. Visit the Canadian Revenue Agency at www.
cra-arc.gc.ca/tax/charities for a list of registered charities in
Canada. To search for licensed third-party telemarketers in
B.C. making calls on behalf of legitimate charities, visit the
Business Practices & Consumer Protection Authority website
at www.bpcpa.ca
- Think before you give. If you are solicited at the mall
or on the street, take a minute or two to “think.” Ask for the
charity’s name and address. Get full identification from the
solicitor and review it carefully. Ask to see written information
on the charity’s programs and finances.
- Giving later might be better. Never feel pressured to give
on the spot. Legitimate charities will welcome your money
tomorrow. If the solicitor pressures you with intimidation
or harassing phone calls, don’t hesitate to file a complaint
with BBB.
- Watch out for cases of mistaken identity. With about
9,000 registered charities in B.C. alone, it’s not surprising
that some charity names sound alike. Be careful that the one
sol iciting you is the one you have in mind.
- Don’t accept vague claims. If something is being sold
to benefit a charity, be wary of vague statements such as
“all proceeds go to charity” or “your purchase will benefit
a charity.” Look for a disclosure that indicates the actual or
estimated amount of the purchase price that the charity will
receive to fund its programs.
- Unordered merchandise is free. If a charity sends you
greeting cards, address labels or other merchandise with an
appeal for donations, you are not obligated to make a donation
or pay for the items.
- Watch out for charity fraud. Legitimate charities do not
demand donations; they willingly provide written information
about their programs, finances or how donations are
used; and they never insist you provide your credit card
number, bank account number or any other personal information.
- Tax receipts. If you are looking to make a tax-deductible
donation, only a registered charity has received a Registration
Number from the Canada Revenue Agency and can issue
donation receipts for gifts.
Learn more about giving to charities by visiting us at
vi.bbb.org
Happy giving!
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