Right after wildfires devastated Maui’s West Side and Kula, the money started pouring in.
As the scale of the disaster became apparent, millions of dollars started flooding Hawaii, donated by generous people anxious to help the victims of the massive tragedy. So far, an estimated $200 million in private donations from hundreds of thousands of donors has been raised by five major organizations and their affiliates. Untold sums have been given to other groups or given directly to those in need.
Most of the money has been funneled through third parties. These include established organizations like the American Red Cross and the Hawaii Community Foundation; GoFundMe accounts online; individuals or grassroots groups setting up ad-hoc charitable funds; people on the street selling T-shirts.
But where’s the oversight? Many of these groups are rock-solid legitimate. Some are well-meaning but inexperienced, and some may be outright frauds. With so many groups to choose from, it can be difficult for a donor to separate the wheat from the chaff.
So it made sense for House Speaker Scott Saiki, who said he received numerous complaints and reports of questionable charity practices, to send Gov. Josh Green a letter last week, urging him to “immediately issue an emergency proclamation to prohibit and criminalize fundraising under false pretenses.”
Saiki also requested that the Attorney General’s Office “immediately institute a process to audit funds to ensure they are spent to assist Maui victims.”
Green and Attorney General Anne Lopez have indicated they are considering Saiki’s request, as they should. With an emphasis on “immediately.”
The private donations have piled up so quickly that swift action is required. In these early, pressure-packed weeks of the crisis, it would be easy to skim off some of the funds when nobody’s looking. To do so under threat of criminal penalty could be a deterrent. It’s also likely that donations will taper off over time, so it’s crucial that this initial outpouring of funds be secured and put to good use.
An emergency order and better oversight would put both donors and fundraisers on notice: for donors, that they can count on their money reaching the victims; for fundraisers, that attempting to scam donors could result in serious criminal penalties.
Saiki told the Star-Advertiser that the Legislature may come up with its own solutions in its next session, which begins in January. Those could include revisiting existing statutes and updating the penal code if necessary, or budgeting for additional investigators to help keep the system honest. Certainly, such action, conducted with full public involvement, is preferable to extending a short-term emergency proclamation.
Of course, charity scams during a crisis are nothing new, and numerous public and private agencies recently have issued alerts. The AG’s Office issued one on Aug. 9, the day after the fires, and continues to monitor and investigate cases of potential fraud.
It’s also important to note that the obligations of both fundraisers and their contributors go beyond complying with government decrees.
Fundraisers should be honest and transparent, even if operating within the law. They should keep administrative expenses to a minimum, and let the public know what those are. Administrative fees or other costs should be duly noted. For example, GoFundMe deducts 2.9% plus 30 cents from each donation.
Donors should be vigilant about who gets their money. Donate only to well-established charities directly, not through an unknown party claiming to represent them. Note that charities must be registered with the AG’s Office to solicit donations, and their status can be verified here.
Increased oversight and transparency could help instill more public confidence in charitable giving, now and in the future. That’s something Maui will need.