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guest commentary by David Potts

Scammed! Scammed by a national chain store! Alright, I’m exaggerating. Scammed may be too strong a word. I’ve been taken advantage of is a more accurate description.

This past Saturday, I was at the register of a book store paying for several books when the cashier, a  pleasant girl, asked “Would you like to donate a book to the tornado victims in Joplin?” She pointed to a rack with books located within reach of the checkout counter. Without a thought I asked my wife Brenda to pick out a couple of books. Brenda asked the cashier who would receive the books and the cashier told her it would be the libraries and schools in Joplin affected by the tornado. Brenda selected a couple of books, we paid for them, and left them with the store to distribute as they saw fit.
When we got in the car, Brenda said, “I hope those books make it to Joplin.”

That statement kicked in my imagination and the professional skepticism of a C.P.A. that left me slightly agitated. I had been duped.

Granted my “donation” was slightly less than $20, but it had nothing to do with the money. This was a marketing ploy by the store to sell additional books, not to help the victims in Joplin. The store wasn’t giving anything that I could tell. The books were not sold at their cost. There was not a matching donation such as “for every book you buy we will donate another book.” This was just a scheme to increase their sales of books and profit from the human tragedy thrust upon our neighbor city by Mother Nature.

I wonder where these books will be stored until the schools and libraries are rebuilt? I bet the victims of the tornado in Joplin have more immediate needs than books, like places to live, toilet paper, toothpaste, and cleaning supplies. I wonder how many businesses and organizations take advantage of tragedy to primarily benefit themselves rather than the victims.

The moral of the story: THINK.

Think before you make a contribution to any organization. Was this store wrong to ask its patrons to buy books to donate to Joplin’s libraries and schools? No, but I think it was sneaky in that the store wasn’t donating anything, as far as I could tell, and it appears its primary purpose was to sell books to benefit themselves, not Joplin’s victims. I was wrong for not thinking through where the best use of the money might be and the best vehicle to donate.

It is good and appropriate to donate money and goods to the tornado victims in Joplin.
You should be ashamed if you don’t make some contribution. We all know the golden rule. Jesus taught “do to others as you would have them do to you.” It’s been good advice for 2,000 years. This year is a good time to put into practice. Just give intelligently.

I have a friend who once worked for a professional money raiser. He would call people every working day to ask for donations for certain organizations that had hired this company to generate donations. (He hated his job but it paid well.) The company kept a significant portion of the funds raised for a particular cause as their fee. So a person donating a $100 might be lucky if $65 of his contribution was used for the charitable cause. Sometimes less.

My advice? Give generously. Give as much as you can to help your fellow human beings. This year has seen more weather-related disasters than we have seen for years. People need your help.  But give smartly and unconditionally. Make sure all your hard earned money gets to the people who need help. Ask lots of questions before you give to any organization.

The safest way to give is through the American Red Cross, the Salvation Army, or through a relief organization associated with your church.

Earlier I said to give unconditionally. Here is an example of what I mean.

A grade school buddy of mine, John Lasater, along with his friends in the local Harley Owners Group, accepted donations of personal care items such as diaper, soap, and non-perishable foods to help Joplin’s tornado victims last week. Of course they accepted cash donations too. The owners of Old Fort Harley Davidson matched the first $2,000 of these funds. When their drive was completed they had a check for more than $4,000 to present to their sister Harley Owners Group in Joplin. Nobody got paid and a 100% of the donations will help those who need the help. None of the money went for administrative expenses.

Their only motivation for giving was they wanted to help and they have big hearts. I’m sure this “grass roots” giving is happening all around our area. It’s commendable.

Just be careful when you give to somebody you don’t know well. Don’t fall victim to a scam.

About Potts
David Potts is a certified public accountant also accredited in business valuation. Owner of Potts & Company, Certified Public Accountants for more than 25 years, his practice focuses on small and medium size businesses and their owners in the areas of taxation, accounting and bookkeeping, business valuation and business advisory services. He is a Fort Smith native and a graduate of the University of Arkansas. You can follow more of his thoughts at ThePottsReport.com. Although every effort is made to provide you accurate and timely tax information, it is general in nature and not specific to your facts and circumstances. Consult a qualified tax professional to discuss your particular case.

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