Fraud Fighters Warn Against Charity Scams

Secretary of State Sam Reed and Attorney General Rob McKenna met yesterday at the AARP Fraud Fighter Call Center in Seattle to discuss the report, which is released annually to outline just how much money is being pocketed by third-party fundraisers registered in Washington, and how much actually goes back to their charity clients. They then joined AARP's volunteer Fraud Fighters to kick off a statewide calling blitz to educate Washington residents about wise charitable giving.

Commercial fundraisers, which can range from telemarketers to mail distributors, collect money on behalf of a variety of groups, like shelters and aid programs. The cut these fundraisers keep and the amount they return to charity varied wildly this year, from 100 percent to nothing at all.

"With the economy in recession, needs are immense across the board," said Reed. "We want to make sure individuals who are able to contribute to charity are informed about where their money is going, so those dollars are having the maximum amount of impact."

The 2008 report shows the following:

• A total of $1,828,442,302 in contributions was raised by the 110 paid fundraisers registered in Washington, though more than $1.1 billion was raised by a single fundraiser new to the state.
• The average percentage of contributions returned to charity clients was 80 percent overall.
• The best: The fundraisers that returned the most contributions to charity gave back more overall this year than they did last year. On average, the fundraisers with the 10 highest percentage rates gave back 89 percent to clients, versus 78 percent in 2007.
• The worst: There was also an improvement among fundraisers that returned the least amount to charity. This year, the fundraisers with the 10 lowest percentages gave back 10 percent on average. Last year, the average return among that bottom group was less than 1 percent.

Read the Reports:

• 2008 Commercial Fundraiser Activity Report - Overview 
• 2008 Commercial Fundraiser Activity Report - Charity Client Index
• 2008 Commercial Fundraiser Activity Report - Registered

There are approximately 7,800 charities currently registered with the Secretary of State's Charities Program -- nearly 800 more than in 2007, which means there are more options than ever to give. While most charities are reputable and accountable to their donors, some charities or their paid solicitors are not and it's up to the consumer to educate themselves to combat fraud.

"Most charities are accountable to their donors, but some Grinches are more interested in helping themselves to your cash than helping others," McKenna cautioned. "Give to organizations that are upfront and responsible."

The Attorney General's Office announced today that it is suing a Sammamish-based nonprofit organization for making misrepresentations while soliciting donations reportedly intended to help homeless and low-income families. The office also has an investigation underway involving another charity.

Adults over 65 can be particularly vulnerable to fundraising scams, according to AARP State Director Doug Shadel, who said this age group receives more telephone and mail solicitations for charitable donations than any other age group.

"With today's sluggish economy, uncertain job market and rising prices, people are in need like never before. But before we open our hearts and our wallets, it's important to make sure we are giving wisely," said Shadel.

The Fraud Fighter Call Center plans on contacting more than 5,000 consumers by phone in coming weeks.