TEXAS – After the Texas Hill Country floods, businesses like H-E-B, several sports teams, and people across the state stepped up to help.
But in times like these, some bad actors try to take advantage and steal money. So, how can you make sure your support actually reaches the victims?
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KPRC 2’s Isa Gonzalez-Montilla spoke with the Chief Relationships Officer for Communities Foundation of Texas, Calvert Collins-Bratton, the main group directing relief funds to vetted nonprofits on the ground, to help make sure your money is actually going to the right places.
First things first: “Make sure they are in fact a nonprofit, that they have their 501c3 status,” Bratton said.
This designation means the organization is recognized by the Internal Revenue Service (IRS) as a tax-exempt nonprofit, which is important because, “if that organization is not legitimate, doesn’t have an IRS tax status, then you can’t get that deduction,” Bratton said.
Donors can deduct their contributions on their taxes next spring, but only if the nonprofit is legitimate.
Online websites like the Better Business Bureau, GuideStar, and Charity Navigator “all check the legitimacy of 501c3 organizations, nonprofit organizations, and you can check their IRS ratings and status,” Bratton said.
Another way to catch bad actors pretending to be charities is by looking through their main website and “making sure that they have contact information,” according to Bratton. This helps confirm the group is real and accessible.
When it comes to giving money, Bratton advises donating by credit card.
“It’s always safer to give...by a credit card, because if something were ever to be fraudulent, your financial institution can back up that gift,” Bratton said.
She also warns to “make sure you double check the URL of the organization” and “that it matches what you think that you’re giving to.”
Avoid payment methods that offer less protection and trackability.
“Not by Venmo or PayPal” because it doesn’t provide the same amount of security or protection as a credit card does, Bratton explained. If you can’t use your credit card, take it as a red fag.
She also cautioned about GoFundMe pages.
“Even with GoFundMe pages, I mean most are legitimate, but there are some that are not, so it’s really important to check where the dollars are going to go,” Bratton said.
She noted that services like Venmo can be problematic because “some of the cash-out services don’t guarantee getting any of your money back.” If you find yourself scammed, Calvert says to act quickly.
“If they have a legitimate tax ID number, you can report that to the IRS if they scammed you,” said Bratton. “File a complaint with the Better Business Bureau or the IRS and Charity Navigator to let them know that that organization either is fraudulent or made fraudulent claims.”
Following these steps can help ensure your generosity reaches Texas Hill Country flood victims and doesn’t fall into the wrong hands.
