Bank Officials, Police Urge Caution With Private Fund Donations

By Kirsten Swann
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Story Created: Feb 21, 2012 at 7:51 PM AKDT

Story Updated: Feb 21, 2012 at 7:51 PM AKDT

ANCHORAGE - It's becoming easier than ever to lend a helping hand, but when it comes to donations, local bank officials said not all funds are created equal.

While established, nonprofit charitable organizations often come with an established paper trail, bankers said privately operated memorial, reward and other funds are virtually indistinguishable from a private checking or savings account.

Because there's usually no contract involved with making a donation to a private account, fund operators have no legal obligation to use the money for the intended purpose.

"Just as any other accounts, if someone's an authorized signer on the account, it's pretty much their money," said David Kennedy, Alaska communications officer for Wells Fargo. "They can do with it as they choose, we really don't have a hand in the process once a savings has been established."

Kennedy said the best way to ensure your money is used for the intended purpose is to donate through a recognized nonprofit or other organization.

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Hmmm said on Thursday, Mar 15 at 12:36 AM

Seems like the IRS would be able to investigate how donations are spent, even if put into a personal account.

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angry said on Thursday, Mar 15 at 12:30 AM

I agree with the last comment. Before making donations, you certainly should make sure that there is an agency that can account for the collected donations,,, and not be spent for personal wants and needs.

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wondering said on Sunday, Feb 26 at 12:29 AM

Does this have anything to do with the Samantha Koenig abduction reward?

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sad said on Tuesday, Feb 21 at 10:23 PM

sad sad sad but a good lesson for those who really want to help others in need. make sure they are verifiable and in need.

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