Oct 09, 2024
AUSTIN (KXAN) — KXAN viewers have reached out to our ReportIt inbox, asking how they can make sure a donation is spent on hurricane relief. But state and federal officials warn that opportunists will try to take advantage of potential donors during disaster recovery. How you can help after Helene This story came from a ReportIt story tip. Send your own story ideas to [email protected] or through KXAN's contact page. Where does it go? While actually tracking where a specific donation gets spent is complicated during a disaster, the American Red Cross and some other nonprofits provide donors with options for where they want their money to go. "Designated donations for a specific disaster will be used for that event; however, in the rare case where donations surpass the Red Cross expense for that disaster, the remaining contributions will be put to use serving the recovery needs of the affected communities," stated the Red Cross' website. Currently, the Red Cross website lists current funds to donate to, including Hurricanes Helene and Milton (both together and separately), general disaster relief, local chapter, blood services and "where it is needed most." It also has an option for a user to cover processing fees. Looking at the nonprofit's 2023 financial statement, it doesn't spend designated donation money on operating expenses or support services. Does it actually? The Red Cross claims that around 90% of every dollar it spends goes to "those in need." A 2022 report by the nonprofit watchdog group CharityWatch supports that claim, and stated that Red Cross spends 91% of its cash on programs and 9% on overhead items, such as management pay. Additionally, CharityWatch considers a charity to be "highly efficient" if it spend at least 75% of its cash on programs. The organization also makes money by selling its blood donations to hospitals, according to CNBC reporting in 2023. This contributes to the organization's overall cash budget. Watch for scams After Hurricane Helene, the Federal Emergency Management Agency (FEMA), the Federal Communications Commission (FCC) and the Department of Justice (DOJ) all issued warnings about charity scams. “During times of crisis, be vigilant, because not all who ask for help have good intentions,” said DOJ attorney Tara McGrath in a Tuesday press release. “Be sure to protect yourself by verifying before you donate to ensure your generous support reaches those truly in need.” The FCC said that some "red flags" donors should watch out for include callers who claim to work for a federal agency or insurance company, and donation pages that aren't on a charity's official website. "Anyone claiming to be a federal official who asks for money is an imposter," said the FCC on its website. "Workers and agents who knock on doors of residences are required to carry official identification and show it upon request, and they may not ask for or accept money."
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