Boston Marathon Bombing Victims Funds

There are several movements afoot to collect funds in relation to the Boston Marathon Bombing. None of them, so far, are in connection with charities that have received high ratings from Charity Navigator. We list them here, with the information we have been able to obtain about each, to help inform potential donors. However, we caution that gifts to these funds carry more risk than gifts to a well-established, fully vetted charity.

• TUGG
•  This fundraising appeal promises that “all proceeds will be donated completely to programs working with victims of the attacks. We are consulting with the Mayor's office, the hospitals that cared for the patients, and other responder teams to assess the most pertinent needs and to deliver funding directly to those impacted”
• TUGG is a 501 c 3 public charity, but it is too small yet for Charity Navigator to rate.
• In 2011, TUGG spent $84k on fundraising and nothing on administrative fees or program fees (this is the category that charities show their spending on their charitable mission).
• The charity is missing many of our Accountability and Transparency metrics including (but not limited to): no conflict of interest policy,  it hasn’t completed an  audit by an independent auditor with an audit oversight committee, does not have at least 5 independent voting Board members, the Board members aren’t listed on its site, no financial statements or Forms 990 found on its site and we could find no evidence of a donor privacy policy on its site. While it may not be unusual for a small charity to not have all of these items in place, we do think it is important for donors to know that TUGGs is missing many of these good governance policies and procedures which help ensure the ethical behavior of charities and proper stewardship of donor dollars.
• The One Fund
• This fundraising effort was established on April 16th by Massachusetts Governor Deval Patrick and Boston Mayor Tom Menino “to help the people most affected by the tragic events that occurred in Boston on April 15, 2013.”
• The group has applied for nonprofit status, but does not yet have it.  The notice about the fund’s creation does properly note that “although the Fund cannot guarantee that the IRS will make a determination that the organization qualifies as a 501(c)(3) tax-exempt entity, if approval is received within the expected time frame, the determination will be retroactive to the date of the Fund’s formation.” Readers of this blog know that the IRS hands out nonprofit status like it is giving away candy so it is highly likely that the fund’s nonprofit status will be approved.
• We’ve seen similar efforts after other disasters, including Superstorm Sandy in which the Governor of NJ and his wife started a fund. At the time, it too did not have nonprofit status (it does now). It has been the subject of some criticism – which Governor Christie has responded to.
• We generally recommend that donors not support brand new charities in a time of crisis, but we recognize that many donors will want to support this fund. Hopefully, the caliber of the leaders who have created the fund, in combination with the media scrutiny it is sure to receive, will help ensure that the fund does as it promises it will do.

And to recap yesterday’s blog, here are some things to keep in mind in your efforts to support a Boston Marathon Bombing related fund:

• Collectively, we donors have the power to hold these funds accountable for distributing the funds to the victims in a timely manner! That’s not to say we don’t want the funds to take enough time to ensure the money is going to real victims in need, but we also don’t want years to pass before the funds are released.
• Be suspicious of online appeals – especially in light of the fact that 100s of new website URLS have popped up since the bombing that use keywords related to the tragedy.
• Seems silly to have to say, but remember, a victim isn't going to know your personal email address to send you a direct appeal for help. This happens after every tragedy and sadly, some people, giving from their heart, don’t stop to think before they click on an email and give their personal financial information.