NEWPORT BEACH : City Advises Caution on Fire-Victim Aid

City officials here are warning residents to be wary of unlicensed charity organizations that claim to be raising money for Laguna Beach fire victims.

Newport Beach police say they are investigating at least three groups that have been seen around town collecting money, putting out boxes to collect spare change or organizing boat cruises to benefit fire victims.

“Charities have come out of the woodwork on the fire thing,” said Glen Everroad, city revenue manager. “How do you know if they are legitimate?”

He said the city asked three groups to apply for a city permit to conduct nonprofit fund raising, but none has yet done so. The police have opened an investigation into the matter, Police Sgt. Andy Gonis said.

Everroad suggests that people who donate money to fund-raisers over the holidays ask questions before writing a check.

He said a legitimate fund-raiser acting on behalf of a charitable organization must be licensed by the city before collecting money from residents or businesses. He also suggests that donors ask each fund-raiser what percentage of their funds are actually turned over to charity.

“There is no law which regulates what percentage a fund-raiser has to donate to the charity,” Everroad said. “Just because they have a permit from a city, they are not necessarily efficient in providing dollars.”

Everroad said that legitimate nonprofit organizations such as the Red Cross or United Way dedicate about 70% of their proceeds to charity, leaving 30% to cover costs. But some licensed fund-raisers may turn over as little as 1% of their funds to charity, he said.

Residents can call Everroad’s office at (714) 644-3141 to learn which groups are licensed by the city.