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How to avoid Nepal earthquake relief scams

Victims of Saturday's earthquake rest inside an Indian Air Force helicopter as they are evacuated from Trishuli Bazar to the airport in Kathmandu, Nepal, April 27, 2015. REUTERS/Jitendra Prakash TPX IMAGES OF THE DAY (REUTERS)

While Nepal reels from the 7.8-maginitude earthquake that crippled the mountainous nation this weekend, killing more than 3,700, relief organizations are mobilizing to offer their support to the region. But amidst the rubble and humanitarian rush, concerned Canadians should be weary of misinformation and sham charities looking to take advantage of your goodwill.

“The reality is, that period of immediate disaster relief usually is only the first few days, and I don’t think that money given now is actually going to go for that,” says Mark Blumberg, a lawyer at Blumberg Segal LLP focused on non-profit and charity law who also maintains www.SmartGiving.ca.

Last year, Canadians gave $70 million to scammers with emotional scams ranking second on the Canadian Anti-Fraud Centre’s list.

“Where there’s a major disaster and a lot of media attention, you end up (with people) setting up a website or Facebook pages to help collect funds,” says Blumberg. “In some cases it’s not that they’re being deliberately deceitful or fraudulent it might just be that they’re wanting to do something good but then they move along and realize they can’t actual build that school they raised the money for or the money just dwindles away.”

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He points to the Haiti earthquake five years ago that shattered hundreds of thousands of lives.

“A lot of groups inspired by the images jumped in and some were out of their leagues,” he adds. “We ended up having a proliferation of organizations of operations operating in Haiti for a period of time and as the money dried up then those organizations interests in operating reduced.”

So how do you avoid charity scams? Blumberg offers some tips.

Know who you’re giving too

It’s human nature to want to help but some organizations do a better job of it than others on the grounds that they’re more attuned and prepared to handle disasters than smaller organizations.

“Instead of re-inventing the wheel a hundred times over it’s probably better to give to organizations that have capacity there, they’re on the ground, they’re really doing work etc…” he says.

The immediate relief is usually tackled by organizations who’ve already accumulated funds well before the disaster so the chances of your dollars going directly to operations occurring at the moment is unlikely.

Instead, Blumberg says to forego the urgency and take the time to research who you’re donating to.

“Pick an organization that is reputable and that you know that they’re around and providing reporting on the work they’re already doing in other places,” he says.

Avoid the door to door

“I would suggest people donate directly to the organization,” says Blumberg added that most charities have some sort of e-donate feature on their websites.

If they don’t, he recommends checking a website like CanadaHelps.org a fundraising platform akin to PayPal which helps existing, legitimate charities collect funds.

One thing he says might be wise to avoid is door-to-door canvassers.

“If you were to give at the door, give a cheque made out to the organization but usually I would just take the pamphlets and go online to donate the money directly because you don’t really know otherwise,” says Blumberg.

See for yourself

One of the best ways to get to know how a charity works and whether it’s the best avenue to exercise your philanthropy is to volunteer your time first.

“That doesn’t work so well when it comes to an international disaster but if people are thinking more generally, volunteering with groups you’ll get to know them much better,” says Blumberg. “It’s good for the organization, it’s good for the person and their self esteem and all that stuff and at the same time it gives them a good window into the good and bad of the organization.”