Imagine this scenario: An individual knocks on the door of a Kaua’i home, flashes a smile, extends a hand in friendship and quickly launches into a sad story about impoverished children and how a large donation can make a big
Imagine this scenario:
An individual knocks on the door of a Kaua’i home,
flashes a smile, extends a hand in friendship and quickly launches into a sad
story about impoverished children and how a large donation can make a big
difference for them. The solicitor says it is good to give, particularly during
the holiday season, and that he will take cold, hard cash now.
Wanting to
help out the less fortunate, the property owner hands over a large, cash
donation
Such transactions commonly occur in Hawai’i and the mainland. But
potential donors can protect themselves from charity scams by listening more
closely to the sales pitch, sizing up the solicitor and the credibility of
charity, and making wise choices, says the Better Business Bureau of
Hawai’i.
It could be difficult, though, for Hawaiians to resist the call to
help others with donations. Eighty-eight percent of the state’s residents
donated to charities in 1998, a figure that was higher than the national
average for that year, according to Hawai’i Community Foundation.
“Local
people are likely to give more money at this time of the year,” Anne Deschene,
president of Better Business Bureau of Hawai’i. “They are in the mode of
buying and giving.”
Charity fraud manifests itself in door-to-door
solicitation and mail and telephone solicitations, Deschene said.
“Up to
$60 billion is lost to telemarketing fraud alone, and that is a conservative
figure,” she said.
It is difficult to pinpoint the extent of charity fraud
in Hawai’i or on Kaua’i, because the victims more often than not are too
embarrassed to admit they have been taken, Deschene said.
If Hawai’i
residents want more information about charities, they can contact the Bureau,
which will review the practices of a charity, Deschene said.
The Bureau
reviews the practices of all national and Hawai’i-based charities and provides
detailed public reports to help prospective donors before they make
donations.
The probe is done mainly because the Bureau has received
numerous calls from the public about a particular charity, not because the
charity might be doing something improper, Deschene said.
The Bureau has
reviewed 700 charities in Hawai’i, including the well-known Aloha United Way,
American Red Cross, Hawai’i State Chapter, American War Veterans, the Boy
Scouts of America/Aloha Council, the Boys and Girls Club of Hawai’i Ronald
McDonald House.
Should the review reveal improper practices, the Bureau can
take the case to the state Department of Consumer Affairs and to state
prosecutors. The matter also can be taken to federal officials if mail fraud is
involved, opening the way for more serious sanctions against convicted
violators.
The most obvious sign of charity fraud is the urgency with which
a solicitor presses for donations, Deschene said.
“Normal charities
solicit all the time, and they don’t need it (the donation) today,” Deschene
said. “They will take their time in giving you material (about their charity or
organization) and they take a check or credit card.”
The Bureau has won
some battles against charities or businesses with questionable business
practices, Deschene said.
The organization has assisted the investigation
and thwarting of misleading advertising practices by Publisher’s Clearinghouse,
she said.
The Bureau also has helped shut down questionable practices by
World Class Travel and Hawai’i Travel, both Hawai’i companies, and has received
reports of consumer scams overall that have resulted in the loss of between $2
and $3 million a month, Deschene said.
Aside from being an advocate for
victims, the Bureau’s other goal is to “protect the donor from non-legitimate
charities and protect the local charities from having the money stolen,”
Deschene said.
Staff writer Lester Chang can be reached at 245-3681
(ext. 225) and lchang@pulitzer.net
