BusinessBusinessLineA publicAtion of the better business bureAu of eAstern north cArolinA

If you have unwanted possessions and simply don’t have the time or know-how to sell or auction them on your own, a reputable consignment business might be just what you need. The consignment operation will handle the marketing and sale of your merchandise, and hopefully you will make some money in the process.

Before starting the process, the Better Business Bureau recommends the following tips to ensure your consignment transactions are successful:

Start your search for a trustworthy consignment partner by reviewing BBB business reliability reports at www.bbb.org.

Select several consignment businesses and comparison-shop by contacting the stores and asking a few basic questions, such as, how long the store has been in operation, what are their terms for selling via consignment, and what types

LINE April 2007

Tips ForSelling Through Consignment

In recent years, instances of foreign lottery fraud have continued to rise. Fortunately, more and more consumers across the U.S. and Canada have been contacting the Better Business Bureau to inquire about the legitimacy

of notices they received by mail and/or e-mail announcing they have won substantial sums of money in a foreign lottery. In fact, in 2006, the Better Business Bureau System received nearly 8,200 inquiries from consumers on foreign lottery scams, a 14 percent increase from the previous year.

In many of these fraud cases, the lottery notices are accompanied by a check or money order for several thousand dollars. Recipients are being instructed to deposit the checks and wire transfer all or portions of the money back to the company to pay for fees or taxes in order to receive their winnings.

The BBB does not want to see another honest, trusting person fall prey to a lottery scheme, and cannot stress too emphatically the dangers of responding to these types of correspondence. Even if no money is transferred to these organizations, simply providing an ID or bank account details to an unknown party makes consumers vulnerable to identity theft and fraudulent use of their bank accounts.

IdentifyingForeign Lottery Scams

used car is not in good condition and needs significant repairs, don’t believe promotional promises that claim you will be able to get “top value” for your car donation based on one of the lat-est published guides that show the av-erage regional prices for various used cars. If you are claiming that the car is worth $5,000 or more, you will need to get an official outside appraisal in or-der to substantiate the claimed value for the IRS.

Also, if you are claiming a car dona-tion of $500 or above, you will need to complete and attach IRS Form 8283 to your tax return. For your records, you also will need proof that you made a charitable gift. The best evidence is to transfer the title of the car to the char-ity and keep a copy of this document. This title change also will help you avoid potential problems that can occur if the car is somehow parked illegally by the organization or is involved in an acci-

dent or other mishap before the charity is able to resell the vehicle.

Why all the fuss? For some households, a car donation may be the single larg-est charitable gift made during the year, or ever. This is all the more reason to make sure that the donation is being used for the greatest charitable benefit and that you can take full advantage of any potential tax deduction. The BBB Wise Giving Alliance welcomes readers to contact us about their experiences with car donations. Visit www.give.org or call (703) 276-0100.

Vehicle Donation Checklist

• Verify that the recipient organiza-tion is tax exempt as a charity.

• Make sure the title of the car is transferred to the charity’s name and keep a copy of this record.

• Find out how the charity financially

benefits from the resale of the car.

• For tax records, take a photo of the car and keep copies of current classi-fied ads or guide value estimates for similar vehicles. (For more deductibility information, get a copy of IRS Publica-tion 561, Determining the Value of Do-nated Property.)

• If the car is worth more than $5,000, get a written professional appraisal.

• Find out if the charity is properly registered with the Charitable Solicita-tion Licensing Registry of the NC Secre-tary of State (website: www.secretary.state.nc.us/csl).

• Check out the charity with the Bet-ter Business Bureau.

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Business LINE

8 BusinessLine • April 2007

What’s Inside:Spotting Rogue Movers 2

New Member Coffees 2

Tips on Donating Used Cars 3

More Work, More Scams 4

Avoid Ethics Problems 5

New Members 6

The Numbers 7

Continued from page 3

Continued on page 7 Continued on page 7

To help consumers identify a lottery scam, the BBB provides the following checklist:

Was the lottery notification delivered to you by mail or e-mail? If you receive a winning lottery notification by regular mail or e-mail, there is a good chance it is fraudulent. Legitimate lottery companies will usually send winning notices by certified mail, Federal Express, UPS or DHL delivery services. On the other hand, if you have played the lottery online, you may be notified by e-mail. However, you still must log into your account to check your winnings and choose whether you want to be paid by check or by a credit to your credit card.

Does the notification appear to come from another country? Organizations behind these frauds operate under different names, often derived from well-known lotteries in other countries. U.S. citizens should know that it is illegal to participate in a foreign lottery.

Were you sent a check or money order with your notification? Fraudulent promoters will sometimes send a check or money order along with notification to convince you they are real.While the checks and money orders may look official, they are counterfeit!

Are you asked to wire transfer money or mail a personal check to cover some type of fee or taxes? Fraudulent promoters will ask you to deposit the check or money order and then instruct you to wire money or send a personal check back to them to cover what may seem like legitimate fees, such as processing, administrative, handling or tax fees. They also may instruct you to call a number to claim your winnings. When you

do, they will try to get you to send money or ask for personal identification information that will undoubtedly be used for identity theft purposes. If you deposit a bogus check or money order in your bank account, keep in mind that you will be held responsible for any money you spend or send to anyone else.

Does the lottery promoter’s name and address on the check match the name and address on the envelope? In many instances it does not. The company name is usually different on the check, the bank name on the check is fraudulent and the account number stolen – making the check a counterfeit. Sponsors of legitimate lotteries and sweepstakes identify themselves prominently on their checks and on the envelopes.

Are the notifications sent by people claiming to be bankers, gaming officials, claims agents, tax collectors, attorneys, or a high ranking government official? Scam artists will use any number of titles in an effort to convince you that they are legitimate.

The BBB wants everyone to understand that legitimate lottery or sweepstakes companies will not ask you to send money in order to collect your winnings. They will not ask you for personal information.

Foreign lottery scams steal millions of dollars from unsuspecting people every year. If you receive any form of notification that you are a prize winner in a foreign lottery or sweepstakes, contact the BBB (www.bbb.org) and check it out before you become the next victim in this type scheme.

of items they may specialize in selling.

Visit the store to observe its physical appearance and talk to the staff. If the store is dependent on walk-in traffic, is it in a convenient location? What sort of advertising does it do? Is the staff market savvy? What would they consider to be a reasonable price for your item? Be aware that some stores will not accept items that are not in season or those that they expect to sell for less than a specific amount.

If you are researching online auction drop-off stores, find one that has knowledgeable staff who can advise you if your item is likely to draw any bids and can assign a fair value to your merchandise. Auction drop-off stores will take a digital photo of your item, write the sales description and pitch, post the auction, and handle shipping to the winning bidder. Ask if you can view the ad before it’s finalized. Some auction drop-off stores will provide an e-mail link to permit you to track the progress of the bidding.

Once you have selected a consignment business, get a written contract. The contract should clearly spell out how the proceeds from a sale will be divided – i.e., will you be paid a flat fee or a percentage (generally from 30-60%)? It should also specify how long your item will remain “on the shelf”; and detail how and when the business will pay you your share of any sale.

The business should willingly provide a bill of sale or other record after the sale. If your item doesn’t sell, know what you need to do and by what date in order to regain possession of your goods.

TOP 10 InquiriesHome Builders ...................... 1,364

Heating & Air Conditioning ........ 905

Auto Repair & Service .............. 867

Home Improvements /Room Additions .......................848

Mortgages .............................. 756

Movers ................................... 756

Work-At-Home Companies ........ 753

Roofing Contractors ................. 734

Auto Dealers–New Cars ............ 631

Insurance Companies ...............584

TOP 10 ComplaintsSwimming Pool Contractors,Dealers, Design ......................... 14Auto Dealers–New Cars .............. 14Auto Dealers–Used Cars ............. 14Exercise/Phys. Fitness Programs ..13Furniture–Retail .........................12Auto Repair & Service ................12Investment Consultants for Home Buying ............................12Health Clubs..............................11Computer Gaming Centers ......... 11Cellular Telephone Service .......... 11

the NUMBERS MARCH 2007

ACTIVITY ReportGeneral Inquiries &Company Report Requests ............ 40,868

Reports Accessed from Website .....39,381

Members Receiving eQuotes ................41

Complaints Opened...........................536

Complaints Closed ............................587

Complaints Resolved ....................74.73%

Advertising Reviews Opened ..................6

Advertising Reviews Closed ...................4

SpoTTIng RogueMoveRsBEFoRE ThEy havE youR goodS

Spring is in the air and for sale signs are sprouting up along with crocuses and daf-fodils, as many families prepare to change residences. Those who decide to relocate may opt to leave the moving to profes-sionals instead of doing it themselves. Be warned though, rogue movers are op-erating coast to coast, blending into the crowd of legitimate movers and luring un-suspecting consumers.

The BBB System logged more than 9,000 complaints in 2006 against movers. While there are thousands of reputable moving companies, there are times when the ex-perience is not so positive.

Rogue movers can be hard to spot. They often give low-ball estimates over the phone or Internet without ever visiting your home or seeing the items you want to move. Once your household goods are on their truck, they demand more money before they will deliver or unload them. Consumers tell BBBs that their goods have been held hostage and many have been forced to pay more than the initial estimate they agreed too in order to get

their goods back.

The BBB and the Federal Motor Carrier Safety Administration suggest that your best defense is to recognize a rogue mover before they have your household goods. Here are some “red flags” to look for:

• The mover or broker does not offer or agree to an on-site inspection of your household goods. They only give you an estimate over the phone or Internet. The estimates often sound too-good-to-be-true. In reality, they usually are.

• The moving company’s only form of ac-ceptable payment is cash or a large de-posit before the move.

• The company’s Web site has no local address and no information about licens-ing or insurance.

• The company claims all goods are cov-ered by their insurance.

• The mover does not provide you with a copy of “Your Rights and Responsibilities When You Move,” a booklet movers are

required by Federal regulations to supply to their customers in the planning stages of interstate moves.

• Offices and warehouse are in poor con-dition or nonexistent.

• On moving day a rental truck ar-rives rather than a company-owned and marked fleet truck.

The BBB advises consumers to:

• Obtain a cost estimate in writing, pref-erably after a walk-through of your home or apartment.

• Don’t select a mover based on price alone. In many cases, you get what you pay for.

• If you have a bad feeling about your mover’s tactics or charges, stop the move before your household goods are loaded on the truck; and,

Start planning your move by reviewing BBB business reliability reports at www.bbb.org to help you find trustworthy car-riers before making any hiring decisions or signing any contracts.

New Member CoffeesThe BBB is inviting all members (especially new members) to drop by for a cup of coffee and a tour of the office. This will give you a chance to meet the staff, talk to other BBB members, and learn how to get the most out of your membership. These informal gatherings are held monthly. The next drop-ins are from 8am-9am

on the following Wednesday mornings: May 16 & June 20. All members are welcome! R.S.V.P. 919-277-4208.

2 BusinessLine • April 2007 Better Business Bureau of Eastern North Carolina 7

Continued from page 1 Continued from page 1

New MembersWe wish to recognize the following firms and express to them our sincere appreciation for their decision to support the BBB’s principles and activities in the interest of self-regulation and our free enterprise system:

A-1 Lock & Safe of NC, Inc. .................................... DurhamAA Pile Driving ..................................................... VaughanAction Alarms, Inc. .............................................WintervilleAffordable Used Cars and Trucks, Inc. ..............JacksonvilleAlfredo & Sons Lawn Maintenance .......................... RaleighAll American Speakers Bureau ............................... DurhamAlliance Supercenter, Inc. ................................. HendersonAmerican Landscape Concepts ........................ Wake ForestAmerican Moving Systems & Storage, Inc. ............ DurhamAtwood Grading & Trucking ................................... WendellB & B Construction of the Old North State, LLC ....New BernBizCom HealthCare Solutions, Inc. ......................... RaleighBluewater Assoc. of Emerald Isle, Inc. ............Emerald IsleBy the Grace of God - Curtis Hart Heating & A/C ........VassC & J Heating & Air, Inc. ...........................................EflandCarolina Hearing Group, Inc. .................................. RaleighCarraway’s Diversified Services, Inc. ...................... RaleighCasey Funeral Home ............................................ PrincetonCasey’s Florals & Catering Service ....................... PrincetonCircle Wood Hardwood Floors, LLC ........................ DurhamClark’s Mobile Home Movers ......................... Seven SpringsCoastal Renovations & Const. of Topsail Beach LLC .Holly RidgeConsolidated Laundry Equipment, Inc. ................... RaleighCouch Trip, LLC ....................................................... RaleighCraig Taylor Construction, Inc. ............................BroadwayCreech’s Plumbing, Inc. ........................................... WilsonCrystal Coast Environmental, Inc. .................... JacksonvilleCutting Edge Cleaning & Home Improvement Co. JacksonvilleDalton Insurance Agency ....................................... RaleighData Processing Services, Inc...............................SuwaneeDavid Daughtridge Builder, Inc. ..................... Rocky MountDes-Ren ............................................................. MorrisvilleDiversified Flooring ................................................ RaleighDurn Good, Inc. ............................................... Wake ForestElite Medical Transport, Inc. ......................................DunnFamily Auto Centers, LLC ........................................ RaleighGloves-Online, Inc. .....................................................CaryHarrison Automotive, Inc. ...................................... RaleighHenry Buckner Custom Builder .......................... Chapel HillHomeBuyingForLess, LLC .................................. Chapel HillHot Wash Pressure Cleaning .................................PittsboroIndustrial Homes, Inc. ......................................JacksonvilleJ. Nicholson, Inc. ..............................................JacksonvilleJ.W. Faircloth & Son. Inc. ................................HillsboroughJBA Consulting, Inc. ............................................... RaleighJeannette Cox Agency, Inc. ................................ GreenvilleJohn A. Johnston & Son ........................................Belhaven

JP Construction ..................................................VanceboroJust Gutters, Inc. ............................................... KnightdaleJW Land & Homes, Inc..................................... Wake ForestK2 Massage Therapy ............................................... RaleighLillypads Boutique .....................................................DunnLiving Solutions for Seniors ................................... DurhamLogics, LLC ............................................................. RaleighMax Paving, Inc. .................................................. AberdeenMeineke Car Care Center ....................................... DurhamMiracle Mortgage .................................................... RaleighMulti-Kleen Irish Cleaning Service ..................... Chapel HillMumford’s Restoration, LLC .................................... RaleighNational Discount Nutrition ..................................... WilsonNational Franchise Assistance ...........................FranklintonNazo Landscaping, Inc. ......................................... DurhamO’ Malley’s Tavern .................................................. RaleighOscar L. Meek Insurance ....................................WarrentonPathways for People, Inc. ...........................................CaryPerkerson Landscapes, LLC ............................. Spring HopePet Comfort and Care ............................................. RaleighPinnacle Auto Holdings, Inc. ........................ Southern PinesPope Trucking & Grading, Inc. .................................. CoatsPremier Paints, Inc. ................................................ RaleighPrime Interactive, Inc. ........................................... RaleighPrincess Pedicure Spa, Inc. .................................... RaleighProfessional Locating Services, Inc. .................JacksonvilleRainbow Realty At Lake Gaston, Inc. .....................LittletonRoof Design Center ................................................. RaleighSCI Rentals ....................................................... Chapel HillSenior Advisors Group, LLC .................................... RaleighSenior Benefit Services ...........................................ClaytonSleep Well / Overstock, LLC ................................ AberdeenSMG Associates, LLC .......................................Holly SpringsSouthern Lights of Raleigh, Inc. ............................. RaleighState Farm Insurance Co ............................................CaryStevens Realty, Inc. ........................................... SmithfieldSunshine Development of NC, Inc......................YoungsvilleSuper Shred ....................................................... GreenvilleTalk of the Town .............................................. Wake ForestTaylored Interiors ........................................ Morehead CityThe Carolinas Financial Network, LLC ..................... RaleighThe Ultimate Auto Spa, LLC ................................ SmithfieldTriangle Custom Cabinets, Inc. .................................. ApexW.C. Rouse Electrical, Inc. ......................................KinstonWakefield Flooring, LLC ................................... Wake ForestWilliamson Insurance & Financial Srvcs, Inc. .... Fuquay Varina

A radio, television or newspaper pro-motion that welcomes car donations may mention a charity name that sounds like an organization working in your community, but that may not be the case. In fact, it may actually be located many states away. If you are not familiar with the charity, its location, and its programs take the time to check it out to avoid being disappointed later.

In addition, since so many organiza-tions now accept donated cars, with a few calls and a little research, you can probably find a group that closely matches the needs or charitable con-cerns you would most like to support. Don’t confine your potential donated car recipients to the one or two char-ity promotions you recently heard in an advertisement.

Not long ago, only a handful of chari-ties were known for accepting these types of donations. In recent years, these contribution requests seem to be everywhere. While this reflects the competition for the charitable dollar among a growing number of organi-zations, this growth is also due to the emergence of third-party brokers. These are for-profit firms that may sign up a number of different char-ity clients located in different parts of the country, solicit for donated cars

on their behalf, sell and/or auction the cars, and then provide the char-ity with some portion of the dollars raised.

The donated car benefit to the charity can vary quite considerably depend-ing on the arrangements. In some cases, the full amount of the dona-tion goes to the organization if the charity sells the car itself or uses the vehicle to help fulfill some program services need (for example, deliver-ing meals to homebound individuals). If a third-party broker is involved, however, the charity may receive only a percentage of the resale price of the car (such as less than 20%) or it may receive a portion of what is left after all the expenses have been paid by the broker, which can result in even smaller amounts going to the chari-table cause.

In some situations, the amount the charity receives from a third-party broker has no relationship to the re-sale price of the used car. The organi-zation may receive a flat fee (such as $100 per used vehicle) or a monthly agreed upon amount (such as $2,000 per month) that is not dependent on the total dollar value of sales incurred by the used car fund raising company. Finding out the nature of the charity’s financial relationship to the resale of

the car is important, since a flat fee situation may result in making your used car donation ineligible for a tax deduction.

In order to take a tax deduction for donating a car, boat or other vehicle, there are a number of other things you should keep in mind. First verify that the recipient organization is tax exempt as a charity under section 501(c)(3) of the Internal Revenue Code. To verify that a charity is eligi-ble to receive contributions deductible as charitable gifts, you can do one or more of the following. See if the orga-nization is listed in IRS Publication 78, the Cumulative List of Organizations, which is likely to be available at most large public libraries. Visit the online version of IRS Publication 78 at www.irs.gov/search/eosearch.html. Or, ask the organization for a copy of its tax exempt status determination letter. (Note that churches are not required to apply for exempt status, and may not have such a letter or be included in the mentioned IRS publication. A car donation to a church, however, would still be deductible.)

If the organization is a charity, you can deduct only the fair market value of your car donation. In other words, this is the price the car would sell for today in its current condition. If the

Tips on donating

TIpS on

donating uSEd CaRS

The solicitation of used vehicles has become an increasingly popular means of raising funds, especially for local

or regional organizations. On the surface, it seems like a win-win situation for the donor and the charity: a

convenient and easy way of disposing of an unwanted car while helping a cause. Before handing over those keys,

however, there are some things that you should know.

6 BusinessLine • April 2007 Better Business Bureau of Eastern North Carolina 3

Continued on page 8

accept a lower price. The goods and services are so grossly overpriced that almost anything the seller gets is profit. If you complain about price, the seller may say, “You were charged what? They must not have given you the discount for . . . “ The seller then tries to negotiate “a better deal.” Sometimes, the seller appeals for sympathy: “We really need the business. I’ll let you have it for . . .”

Paying for returned merchandise: The seller claims you can return merchandise if you pay a “restocking fee.” In fact, the fee is often more than the goods are worth. Similarly, the seller may try to get you to pay shipping charges to return the items.

The Vanity Pitch:

“Dear Business Executive” begins the letter. “We would like to include you in our next edition of ‘Who’s Who in the (fill in the blank).’” All too frequently, such pitches for “Who’s Who” type publications, biographies of successful people, or nominations for awards or special memberships have a catch to them. The executive who is flattered into providing the details of his or her career may be stuck with a subscription fee, a charge for the listing, or an inflated price for buying a publication that does not receive the widespread distribution implied in the initial offer.

Here are some ways you can protect your business from paying for unsolicited or unordered goods and services:

Know your rights. If you receive supplies or bills for services you didn’t order, don’t pay, and don’t return the unordered merchandise. You may treat unordered merchandise as a gift. By law, it’s illegal for a seller to send you bills or dunning notices for unordered merchandise, or ask you to return it—even if the seller offers to pay for shipping.

Assign designated buyers and document your purchases. For each order, the designated employee should issue a purchase order—electronic or written—to the supplier with an authorized signature and a purchase order number. The order form should instruct the supplier to note the purchase order number on the invoice and bill of lading. The buyer should send a copy of purchase orders to the accounts payable department. Keep blank order forms secure.

Check your documentation before

paying bills. When merchandise arrives, an employee should verify that it matches the shipper’s bill of lading and your purchase order. Pay close attention to brand and quantity. Refuse merchandise that doesn’t match internal documentation.

Train your staff. Train everyone how to respond to unsolicited phone, fax or email offers for office supplies and services. Advise employees who are not authorized to order supplies and services to refer all such sales pitches to the employee who is authorized to make these purchases. The authorized employee should then properly document any purchase orders.

Quick check List

Before accepting any business proposition, you should do the following:

• Get everything in writing. Require that all in-person, Internet or phone sales pitches, advertising and charity appeals, or requests for your personal information be made in writing;

• Refuse to make commitments with the unknown. Train employees to refuse to make deals with un-known sellers, especially over the phone, without first verifying the reliability and complaint history of the seller’s business with the BBB and other consumer protection agencies;

• Institute strict accounting controls. The handling of invoices, etc. should be centralized and authorization closely checked;

• Comparison Shop. Compare product prices, quality, and company service with other suppliers when offered a deal from an unknown salesperson or company;

• Keep a list of regularly used publications or vendors. Protect your business against schemers who try to take your money by claiming that your company previously used a publication or service.

You can learn more about schemes against business issues at the following websites:

www.ftc.gov (Federal Trade Commission)

www.usps.gov/websites/depart/inspect (U.S. Postal Inspection Service)

www.sba.gov (U.S. Small Business Administration)

A recent workplace survey revealed that, in today’s bustling business world, 9 out of 10 employees responsible for paying company bills have other major responsibilities in addition to handling accounts payable.Therefore, it’s understandable how busy employees can be easy prey for business schemes if they aren’t careful.

The best protection against business schemes is knowledge and vigilance.

During the holiday season or summer months, employees who are responsible for paying company invoices sometimes take time off. As a result, con artists may step up their efforts to try to cheat a company during those periods.

Even when persons with financial accountability are present, such as accountants, bookkeepers, etc.,

nearly 4 out of every 10 companies do not require any second line of oversight; i.e., no other employee is required to provide a second look at or approval of invoices before bills are paid.

Business scheme crooks and shysters owe their success to companies that have careless bookkeeping practices, inattentive or ill-equipped employees, and faulty corporate communications that blind each division of a company to the important responsibilities of another division. By educating your employees to identify common business scams, you can help them to defend your business against swindlers.

the MOst cOMMON scAMs

To protect your organization, learn to recognize the most common business scams.

Advance Fee Loan Brokers:

Businesses in need of commercial loans to expand or even stay afloat

may be vulnerable to pitches by loan broker sharks. In a typical advance fee loan scheme, a business wil l answer an advertisement regarding the availability of money to lend. During a subsequent phone conversation with the loan broker, the client is assured that he qualifies for a loan but is asked to submit an advance fee for the finding of this risk capital or loan. The advance fee is characterized as payment to the broker to prepare a business plan and present it to prospective investors. However, the disreputable ‘broker’ all too often makes no effort to find funds as promised. The business never receives the promised loan, and loses all advance fees paid to the broker.

The Gift-Horse:

This scam tries to create mistrust within an organization. It starts when

the caller tricks an employee into accepting a gift—a free promotional item—with a passing reference to merchandise or services. Overpriced, unordered merchandise is received, followed by an invoice with the employee’s name. If the business questions whether it must pay the invoice, the employee comes under suspicion. The scheme works if the company believes that the employee blundered into ordering something that must now be paid for.

Phony Invoices:

Schemers know that a business sometimes makes mistakes or can be careless in its accounting, so they prey on these weaknesses. Lifting names from mailing lists, business registers, the Yellow Pages or published advertisements, swindlers send ‘pro-forma’ invoices for directory listings or advertising in various publications, journals or directories. The invoice may seem genuine to the company’s accounting department, and may even include the name of a company

executive as the “authorizing agent.” However, the invoice may be a solicitation in disguise and in very fine print contain the following disclaimer: “This is a solicitation. You are under no obligation to pay unless you accept this offer.” Although the law states that it is illegal to send such a solicitation without the disclaimer being conspicuous and in large print, there are those who flout the regulations and send disguised solicitations. These phony invoicers are often persistent and may send a company two or more advertising invoices in the hope that the “bill” will be paid twice.

Office Supply & Paper Pirates:

This scheme covers a wide range of office goods such as photocopying paper, copying supplies or ballpoint pens. The supplier makes a pitch by telephone, fax, or e-mail or a

salesperson may just show up on the premises. Usually, the supplier tries to target an employee who is unfamil iar with purchasing procedures. A common approach is for the salesperson to claim ‘liquidation of stock’ or “going out of business.” The merchandise, if delivered at all, is often of inferior quality, greatly overpriced, or may come in twice the amount ordered.

The Brush Off:

When a business or organization complains that it didn’t order merchandise or services or that prices are too high, a scam seller reacts in predictable ways:

Bullying: If you express any uncertainty about whether the supplies or services were ever ordered, the seller argues: ‘They were ordered. We have a recording of Mr. Jones. If you don’t pay, we can take you to court.’

Negotiating: The seller agrees to

Avoid ethicsproblems

Every year, businesses lose millions of dollars to con artists through a host

of different tricks and scams. As the workload for the average American

employee increases, so does the likelihood of business scheme success.

More work, MORE SCAMS

Ethics should start from the top down in any organization. Being honest and open is the only way to succeed at business. As a CEO or top manager, how can you avoid ethics problems within your business? The BBB offers the following tips:

• Bring your highest sense of ethics to your business and lead by example. Demonstrate high ethical standards of behavior toward your customers, suppliers, shareholders, employees and communities in which you do business. Be honest in all your dealings.

• Develop an ethics policy. Make certain that your policy starts at the top level so that company management sets an important example for all employees. Set up training programs that will assist employees in carrying out established ethics policies. Although an ethics policy may not stop unethical behavior, it may give people something to think about and provide a measurement against which to assess their behavior.

• Establish an internal communication system that allows employees to express concerns directly to top management if they suspect wrongdoing or are uncomfortable with current practices. Consider appointing an ombudsman.

• Treat your employees with respect and fairness.

• Reward your employees for ethical decision making and actions.

• Meet with your accounting staff to reinforce the highest reporting and accounting standards and expectations. When the line between doing what is right and what is legal is not clear, move back to what you know is right.

• Know what is going on in your company. Routinely walk around and talk to your employees directly. Get a feel for what they are doing. Be accessible and interested.

4 BusinessLine • April 2007 Better Business Bureau of Eastern North Carolina 5

accept a lower price. The goods and services are so grossly overpriced that almost anything the seller gets is profit. If you complain about price, the seller may say, “You were charged what? They must not have given you the discount for . . . “ The seller then tries to negotiate “a better deal.” Sometimes, the seller appeals for sympathy: “We really need the business. I’ll let you have it for . . .”

Paying for returned merchandise: The seller claims you can return merchandise if you pay a “restocking fee.” In fact, the fee is often more than the goods are worth. Similarly, the seller may try to get you to pay shipping charges to return the items.

The Vanity Pitch:

“Dear Business Executive” begins the letter. “We would like to include you in our next edition of ‘Who’s Who in the (fill in the blank).’” All too frequently, such pitches for “Who’s Who” type publications, biographies of successful people, or nominations for awards or special memberships have a catch to them. The executive who is flattered into providing the details of his or her career may be stuck with a subscription fee, a charge for the listing, or an inflated price for buying a publication that does not receive the widespread distribution implied in the initial offer.

Here are some ways you can protect your business from paying for unsolicited or unordered goods and services:

Know your rights. If you receive supplies or bills for services you didn’t order, don’t pay, and don’t return the unordered merchandise. You may treat unordered merchandise as a gift. By law, it’s illegal for a seller to send you bills or dunning notices for unordered merchandise, or ask you to return it—even if the seller offers to pay for shipping.

Assign designated buyers and document your purchases. For each order, the designated employee should issue a purchase order—electronic or written—to the supplier with an authorized signature and a purchase order number. The order form should instruct the supplier to note the purchase order number on the invoice and bill of lading. The buyer should send a copy of purchase orders to the accounts payable department. Keep blank order forms secure.

Check your documentation before

paying bills. When merchandise arrives, an employee should verify that it matches the shipper’s bill of lading and your purchase order. Pay close attention to brand and quantity. Refuse merchandise that doesn’t match internal documentation.

Train your staff. Train everyone how to respond to unsolicited phone, fax or email offers for office supplies and services. Advise employees who are not authorized to order supplies and services to refer all such sales pitches to the employee who is authorized to make these purchases. The authorized employee should then properly document any purchase orders.

Quick check List

Before accepting any business proposition, you should do the following:

• Get everything in writing. Require that all in-person, Internet or phone sales pitches, advertising and charity appeals, or requests for your personal information be made in writing;

• Refuse to make commitments with the unknown. Train employees to refuse to make deals with un-known sellers, especially over the phone, without first verifying the reliability and complaint history of the seller’s business with the BBB and other consumer protection agencies;

• Institute strict accounting controls. The handling of invoices, etc. should be centralized and authorization closely checked;

• Comparison Shop. Compare product prices, quality, and company service with other suppliers when offered a deal from an unknown salesperson or company;

• Keep a list of regularly used publications or vendors. Protect your business against schemers who try to take your money by claiming that your company previously used a publication or service.

You can learn more about schemes against business issues at the following websites:

www.ftc.gov (Federal Trade Commission)

www.usps.gov/websites/depart/inspect (U.S. Postal Inspection Service)

www.sba.gov (U.S. Small Business Administration)

A recent workplace survey revealed that, in today’s bustling business world, 9 out of 10 employees responsible for paying company bills have other major responsibilities in addition to handling accounts payable.Therefore, it’s understandable how busy employees can be easy prey for business schemes if they aren’t careful.

The best protection against business schemes is knowledge and vigilance.

During the holiday season or summer months, employees who are responsible for paying company invoices sometimes take time off. As a result, con artists may step up their efforts to try to cheat a company during those periods.

Even when persons with financial accountability are present, such as accountants, bookkeepers, etc.,

nearly 4 out of every 10 companies do not require any second line of oversight; i.e., no other employee is required to provide a second look at or approval of invoices before bills are paid.

Business scheme crooks and shysters owe their success to companies that have careless bookkeeping practices, inattentive or ill-equipped employees, and faulty corporate communications that blind each division of a company to the important responsibilities of another division. By educating your employees to identify common business scams, you can help them to defend your business against swindlers.

the MOst cOMMON scAMs

To protect your organization, learn to recognize the most common business scams.

Advance Fee Loan Brokers:

Businesses in need of commercial loans to expand or even stay afloat

may be vulnerable to pitches by loan broker sharks. In a typical advance fee loan scheme, a business wil l answer an advertisement regarding the availability of money to lend. During a subsequent phone conversation with the loan broker, the client is assured that he qualifies for a loan but is asked to submit an advance fee for the finding of this risk capital or loan. The advance fee is characterized as payment to the broker to prepare a business plan and present it to prospective investors. However, the disreputable ‘broker’ all too often makes no effort to find funds as promised. The business never receives the promised loan, and loses all advance fees paid to the broker.

The Gift-Horse:

This scam tries to create mistrust within an organization. It starts when

the caller tricks an employee into accepting a gift—a free promotional item—with a passing reference to merchandise or services. Overpriced, unordered merchandise is received, followed by an invoice with the employee’s name. If the business questions whether it must pay the invoice, the employee comes under suspicion. The scheme works if the company believes that the employee blundered into ordering something that must now be paid for.

Phony Invoices:

Schemers know that a business sometimes makes mistakes or can be careless in its accounting, so they prey on these weaknesses. Lifting names from mailing lists, business registers, the Yellow Pages or published advertisements, swindlers send ‘pro-forma’ invoices for directory listings or advertising in various publications, journals or directories. The invoice may seem genuine to the company’s accounting department, and may even include the name of a company

executive as the “authorizing agent.” However, the invoice may be a solicitation in disguise and in very fine print contain the following disclaimer: “This is a solicitation. You are under no obligation to pay unless you accept this offer.” Although the law states that it is illegal to send such a solicitation without the disclaimer being conspicuous and in large print, there are those who flout the regulations and send disguised solicitations. These phony invoicers are often persistent and may send a company two or more advertising invoices in the hope that the “bill” will be paid twice.

Office Supply & Paper Pirates:

This scheme covers a wide range of office goods such as photocopying paper, copying supplies or ballpoint pens. The supplier makes a pitch by telephone, fax, or e-mail or a

salesperson may just show up on the premises. Usually, the supplier tries to target an employee who is unfamil iar with purchasing procedures. A common approach is for the salesperson to claim ‘liquidation of stock’ or “going out of business.” The merchandise, if delivered at all, is often of inferior quality, greatly overpriced, or may come in twice the amount ordered.

The Brush Off:

When a business or organization complains that it didn’t order merchandise or services or that prices are too high, a scam seller reacts in predictable ways:

Bullying: If you express any uncertainty about whether the supplies or services were ever ordered, the seller argues: ‘They were ordered. We have a recording of Mr. Jones. If you don’t pay, we can take you to court.’

Negotiating: The seller agrees to

Avoid ethicsproblems

Every year, businesses lose millions of dollars to con artists through a host

of different tricks and scams. As the workload for the average American

employee increases, so does the likelihood of business scheme success.

More work, MORE SCAMS

Ethics should start from the top down in any organization. Being honest and open is the only way to succeed at business. As a CEO or top manager, how can you avoid ethics problems within your business? The BBB offers the following tips:

• Bring your highest sense of ethics to your business and lead by example. Demonstrate high ethical standards of behavior toward your customers, suppliers, shareholders, employees and communities in which you do business. Be honest in all your dealings.

• Develop an ethics policy. Make certain that your policy starts at the top level so that company management sets an important example for all employees. Set up training programs that will assist employees in carrying out established ethics policies. Although an ethics policy may not stop unethical behavior, it may give people something to think about and provide a measurement against which to assess their behavior.

• Establish an internal communication system that allows employees to express concerns directly to top management if they suspect wrongdoing or are uncomfortable with current practices. Consider appointing an ombudsman.

• Treat your employees with respect and fairness.

• Reward your employees for ethical decision making and actions.

• Meet with your accounting staff to reinforce the highest reporting and accounting standards and expectations. When the line between doing what is right and what is legal is not clear, move back to what you know is right.

• Know what is going on in your company. Routinely walk around and talk to your employees directly. Get a feel for what they are doing. Be accessible and interested.

4 BusinessLine • April 2007 Better Business Bureau of Eastern North Carolina 5

New MembersWe wish to recognize the following firms and express to them our sincere appreciation for their decision to support the BBB’s principles and activities in the interest of self-regulation and our free enterprise system:

A-1 Lock & Safe of NC, Inc. .................................... DurhamAA Pile Driving ..................................................... VaughanAction Alarms, Inc. .............................................WintervilleAffordable Used Cars and Trucks, Inc. ..............JacksonvilleAlfredo & Sons Lawn Maintenance .......................... RaleighAll American Speakers Bureau ............................... DurhamAlliance Supercenter, Inc. ................................. HendersonAmerican Landscape Concepts ........................ Wake ForestAmerican Moving Systems & Storage, Inc. ............ DurhamAtwood Grading & Trucking ................................... WendellB & B Construction of the Old North State, LLC ....New BernBizCom HealthCare Solutions, Inc. ......................... RaleighBluewater Assoc. of Emerald Isle, Inc. ............Emerald IsleBy the Grace of God - Curtis Hart Heating & A/C ........VassC & J Heating & Air, Inc. ...........................................EflandCarolina Hearing Group, Inc. .................................. RaleighCarraway’s Diversified Services, Inc. ...................... RaleighCasey Funeral Home ............................................ PrincetonCasey’s Florals & Catering Service ....................... PrincetonCircle Wood Hardwood Floors, LLC ........................ DurhamClark’s Mobile Home Movers ......................... Seven SpringsCoastal Renovations & Const. of Topsail Beach LLC .Holly RidgeConsolidated Laundry Equipment, Inc. ................... RaleighCouch Trip, LLC ....................................................... RaleighCraig Taylor Construction, Inc. ............................BroadwayCreech’s Plumbing, Inc. ........................................... WilsonCrystal Coast Environmental, Inc. .................... JacksonvilleCutting Edge Cleaning & Home Improvement Co. JacksonvilleDalton Insurance Agency ....................................... RaleighData Processing Services, Inc...............................SuwaneeDavid Daughtridge Builder, Inc. ..................... Rocky MountDes-Ren ............................................................. MorrisvilleDiversified Flooring ................................................ RaleighDurn Good, Inc. ............................................... Wake ForestElite Medical Transport, Inc. ......................................DunnFamily Auto Centers, LLC ........................................ RaleighGloves-Online, Inc. .....................................................CaryHarrison Automotive, Inc. ...................................... RaleighHenry Buckner Custom Builder .......................... Chapel HillHomeBuyingForLess, LLC .................................. Chapel HillHot Wash Pressure Cleaning .................................PittsboroIndustrial Homes, Inc. ......................................JacksonvilleJ. Nicholson, Inc. ..............................................JacksonvilleJ.W. Faircloth & Son. Inc. ................................HillsboroughJBA Consulting, Inc. ............................................... RaleighJeannette Cox Agency, Inc. ................................ GreenvilleJohn A. Johnston & Son ........................................Belhaven

JP Construction ..................................................VanceboroJust Gutters, Inc. ............................................... KnightdaleJW Land & Homes, Inc..................................... Wake ForestK2 Massage Therapy ............................................... RaleighLillypads Boutique .....................................................DunnLiving Solutions for Seniors ................................... DurhamLogics, LLC ............................................................. RaleighMax Paving, Inc. .................................................. AberdeenMeineke Car Care Center ....................................... DurhamMiracle Mortgage .................................................... RaleighMulti-Kleen Irish Cleaning Service ..................... Chapel HillMumford’s Restoration, LLC .................................... RaleighNational Discount Nutrition ..................................... WilsonNational Franchise Assistance ...........................FranklintonNazo Landscaping, Inc. ......................................... DurhamO’ Malley’s Tavern .................................................. RaleighOscar L. Meek Insurance ....................................WarrentonPathways for People, Inc. ...........................................CaryPerkerson Landscapes, LLC ............................. Spring HopePet Comfort and Care ............................................. RaleighPinnacle Auto Holdings, Inc. ........................ Southern PinesPope Trucking & Grading, Inc. .................................. CoatsPremier Paints, Inc. ................................................ RaleighPrime Interactive, Inc. ........................................... RaleighPrincess Pedicure Spa, Inc. .................................... RaleighProfessional Locating Services, Inc. .................JacksonvilleRainbow Realty At Lake Gaston, Inc. .....................LittletonRoof Design Center ................................................. RaleighSCI Rentals ....................................................... Chapel HillSenior Advisors Group, LLC .................................... RaleighSenior Benefit Services ...........................................ClaytonSleep Well / Overstock, LLC ................................ AberdeenSMG Associates, LLC .......................................Holly SpringsSouthern Lights of Raleigh, Inc. ............................. RaleighState Farm Insurance Co ............................................CaryStevens Realty, Inc. ........................................... SmithfieldSunshine Development of NC, Inc......................YoungsvilleSuper Shred ....................................................... GreenvilleTalk of the Town .............................................. Wake ForestTaylored Interiors ........................................ Morehead CityThe Carolinas Financial Network, LLC ..................... RaleighThe Ultimate Auto Spa, LLC ................................ SmithfieldTriangle Custom Cabinets, Inc. .................................. ApexW.C. Rouse Electrical, Inc. ......................................KinstonWakefield Flooring, LLC ................................... Wake ForestWilliamson Insurance & Financial Srvcs, Inc. .... Fuquay Varina

A radio, television or newspaper pro-motion that welcomes car donations may mention a charity name that sounds like an organization working in your community, but that may not be the case. In fact, it may actually be located many states away. If you are not familiar with the charity, its location, and its programs take the time to check it out to avoid being disappointed later.

In addition, since so many organiza-tions now accept donated cars, with a few calls and a little research, you can probably find a group that closely matches the needs or charitable con-cerns you would most like to support. Don’t confine your potential donated car recipients to the one or two char-ity promotions you recently heard in an advertisement.

Not long ago, only a handful of chari-ties were known for accepting these types of donations. In recent years, these contribution requests seem to be everywhere. While this reflects the competition for the charitable dollar among a growing number of organi-zations, this growth is also due to the emergence of third-party brokers. These are for-profit firms that may sign up a number of different char-ity clients located in different parts of the country, solicit for donated cars

on their behalf, sell and/or auction the cars, and then provide the char-ity with some portion of the dollars raised.

The donated car benefit to the charity can vary quite considerably depend-ing on the arrangements. In some cases, the full amount of the dona-tion goes to the organization if the charity sells the car itself or uses the vehicle to help fulfill some program services need (for example, deliver-ing meals to homebound individuals). If a third-party broker is involved, however, the charity may receive only a percentage of the resale price of the car (such as less than 20%) or it may receive a portion of what is left after all the expenses have been paid by the broker, which can result in even smaller amounts going to the chari-table cause.

In some situations, the amount the charity receives from a third-party broker has no relationship to the re-sale price of the used car. The organi-zation may receive a flat fee (such as $100 per used vehicle) or a monthly agreed upon amount (such as $2,000 per month) that is not dependent on the total dollar value of sales incurred by the used car fund raising company. Finding out the nature of the charity’s financial relationship to the resale of

the car is important, since a flat fee situation may result in making your used car donation ineligible for a tax deduction.

In order to take a tax deduction for donating a car, boat or other vehicle, there are a number of other things you should keep in mind. First verify that the recipient organization is tax exempt as a charity under section 501(c)(3) of the Internal Revenue Code. To verify that a charity is eligi-ble to receive contributions deductible as charitable gifts, you can do one or more of the following. See if the orga-nization is listed in IRS Publication 78, the Cumulative List of Organizations, which is likely to be available at most large public libraries. Visit the online version of IRS Publication 78 at www.irs.gov/search/eosearch.html. Or, ask the organization for a copy of its tax exempt status determination letter. (Note that churches are not required to apply for exempt status, and may not have such a letter or be included in the mentioned IRS publication. A car donation to a church, however, would still be deductible.)

If the organization is a charity, you can deduct only the fair market value of your car donation. In other words, this is the price the car would sell for today in its current condition. If the

Tips on donating

TIpS on

donating uSEd CaRS

The solicitation of used vehicles has become an increasingly popular means of raising funds, especially for local

or regional organizations. On the surface, it seems like a win-win situation for the donor and the charity: a

convenient and easy way of disposing of an unwanted car while helping a cause. Before handing over those keys,

however, there are some things that you should know.

6 BusinessLine • April 2007 Better Business Bureau of Eastern North Carolina 3

Continued on page 8

To help consumers identify a lottery scam, the BBB provides the following checklist:

Was the lottery notification delivered to you by mail or e-mail? If you receive a winning lottery notification by regular mail or e-mail, there is a good chance it is fraudulent. Legitimate lottery companies will usually send winning notices by certified mail, Federal Express, UPS or DHL delivery services. On the other hand, if you have played the lottery online, you may be notified by e-mail. However, you still must log into your account to check your winnings and choose whether you want to be paid by check or by a credit to your credit card.

Does the notification appear to come from another country? Organizations behind these frauds operate under different names, often derived from well-known lotteries in other countries. U.S. citizens should know that it is illegal to participate in a foreign lottery.

Were you sent a check or money order with your notification? Fraudulent promoters will sometimes send a check or money order along with notification to convince you they are real.While the checks and money orders may look official, they are counterfeit!

Are you asked to wire transfer money or mail a personal check to cover some type of fee or taxes? Fraudulent promoters will ask you to deposit the check or money order and then instruct you to wire money or send a personal check back to them to cover what may seem like legitimate fees, such as processing, administrative, handling or tax fees. They also may instruct you to call a number to claim your winnings. When you

do, they will try to get you to send money or ask for personal identification information that will undoubtedly be used for identity theft purposes. If you deposit a bogus check or money order in your bank account, keep in mind that you will be held responsible for any money you spend or send to anyone else.

Does the lottery promoter’s name and address on the check match the name and address on the envelope? In many instances it does not. The company name is usually different on the check, the bank name on the check is fraudulent and the account number stolen – making the check a counterfeit. Sponsors of legitimate lotteries and sweepstakes identify themselves prominently on their checks and on the envelopes.

Are the notifications sent by people claiming to be bankers, gaming officials, claims agents, tax collectors, attorneys, or a high ranking government official? Scam artists will use any number of titles in an effort to convince you that they are legitimate.

The BBB wants everyone to understand that legitimate lottery or sweepstakes companies will not ask you to send money in order to collect your winnings. They will not ask you for personal information.

Foreign lottery scams steal millions of dollars from unsuspecting people every year. If you receive any form of notification that you are a prize winner in a foreign lottery or sweepstakes, contact the BBB (www.bbb.org) and check it out before you become the next victim in this type scheme.

of items they may specialize in selling.

Visit the store to observe its physical appearance and talk to the staff. If the store is dependent on walk-in traffic, is it in a convenient location? What sort of advertising does it do? Is the staff market savvy? What would they consider to be a reasonable price for your item? Be aware that some stores will not accept items that are not in season or those that they expect to sell for less than a specific amount.

If you are researching online auction drop-off stores, find one that has knowledgeable staff who can advise you if your item is likely to draw any bids and can assign a fair value to your merchandise. Auction drop-off stores will take a digital photo of your item, write the sales description and pitch, post the auction, and handle shipping to the winning bidder. Ask if you can view the ad before it’s finalized. Some auction drop-off stores will provide an e-mail link to permit you to track the progress of the bidding.

Once you have selected a consignment business, get a written contract. The contract should clearly spell out how the proceeds from a sale will be divided – i.e., will you be paid a flat fee or a percentage (generally from 30-60%)? It should also specify how long your item will remain “on the shelf”; and detail how and when the business will pay you your share of any sale.

The business should willingly provide a bill of sale or other record after the sale. If your item doesn’t sell, know what you need to do and by what date in order to regain possession of your goods.

TOP 10 InquiriesHome Builders ...................... 1,364

Heating & Air Conditioning ........ 905

Auto Repair & Service .............. 867

Home Improvements /Room Additions .......................848

Mortgages .............................. 756

Movers ................................... 756

Work-At-Home Companies ........ 753

Roofing Contractors ................. 734

Auto Dealers–New Cars ............ 631

Insurance Companies ...............584

TOP 10 ComplaintsSwimming Pool Contractors,Dealers, Design ......................... 14Auto Dealers–New Cars .............. 14Auto Dealers–Used Cars ............. 14Exercise/Phys. Fitness Programs ..13Furniture–Retail .........................12Auto Repair & Service ................12Investment Consultants for Home Buying ............................12Health Clubs..............................11Computer Gaming Centers ......... 11Cellular Telephone Service .......... 11

the NUMBERS MARCH 2007

ACTIVITY ReportGeneral Inquiries &Company Report Requests ............ 40,868

Reports Accessed from Website .....39,381

Members Receiving eQuotes ................41

Complaints Opened...........................536

Complaints Closed ............................587

Complaints Resolved ....................74.73%

Advertising Reviews Opened ..................6

Advertising Reviews Closed ...................4

SpoTTIng RogueMoveRsBEFoRE ThEy havE youR goodS

Spring is in the air and for sale signs are sprouting up along with crocuses and daf-fodils, as many families prepare to change residences. Those who decide to relocate may opt to leave the moving to profes-sionals instead of doing it themselves. Be warned though, rogue movers are op-erating coast to coast, blending into the crowd of legitimate movers and luring un-suspecting consumers.

The BBB System logged more than 9,000 complaints in 2006 against movers. While there are thousands of reputable moving companies, there are times when the ex-perience is not so positive.

Rogue movers can be hard to spot. They often give low-ball estimates over the phone or Internet without ever visiting your home or seeing the items you want to move. Once your household goods are on their truck, they demand more money before they will deliver or unload them. Consumers tell BBBs that their goods have been held hostage and many have been forced to pay more than the initial estimate they agreed too in order to get

their goods back.

The BBB and the Federal Motor Carrier Safety Administration suggest that your best defense is to recognize a rogue mover before they have your household goods. Here are some “red flags” to look for:

• The mover or broker does not offer or agree to an on-site inspection of your household goods. They only give you an estimate over the phone or Internet. The estimates often sound too-good-to-be-true. In reality, they usually are.

• The moving company’s only form of ac-ceptable payment is cash or a large de-posit before the move.

• The company’s Web site has no local address and no information about licens-ing or insurance.

• The company claims all goods are cov-ered by their insurance.

• The mover does not provide you with a copy of “Your Rights and Responsibilities When You Move,” a booklet movers are

required by Federal regulations to supply to their customers in the planning stages of interstate moves.

• Offices and warehouse are in poor con-dition or nonexistent.

• On moving day a rental truck ar-rives rather than a company-owned and marked fleet truck.

The BBB advises consumers to:

• Obtain a cost estimate in writing, pref-erably after a walk-through of your home or apartment.

• Don’t select a mover based on price alone. In many cases, you get what you pay for.

• If you have a bad feeling about your mover’s tactics or charges, stop the move before your household goods are loaded on the truck; and,

Start planning your move by reviewing BBB business reliability reports at www.bbb.org to help you find trustworthy car-riers before making any hiring decisions or signing any contracts.

New Member CoffeesThe BBB is inviting all members (especially new members) to drop by for a cup of coffee and a tour of the office. This will give you a chance to meet the staff, talk to other BBB members, and learn how to get the most out of your membership. These informal gatherings are held monthly. The next drop-ins are from 8am-9am

on the following Wednesday mornings: May 16 & June 20. All members are welcome! R.S.V.P. 919-277-4208.

2 BusinessLine • April 2007 Better Business Bureau of Eastern North Carolina 7

Continued from page 1 Continued from page 1

BusinessBusinessLineA publicAtion of the better business bureAu of eAstern north cArolinA

If you have unwanted possessions and simply don’t have the time or know-how to sell or auction them on your own, a reputable consignment business might be just what you need. The consignment operation will handle the marketing and sale of your merchandise, and hopefully you will make some money in the process.

Before starting the process, the Better Business Bureau recommends the following tips to ensure your consignment transactions are successful:

Start your search for a trustworthy consignment partner by reviewing BBB business reliability reports at www.bbb.org.

Select several consignment businesses and comparison-shop by contacting the stores and asking a few basic questions, such as, how long the store has been in operation, what are their terms for selling via consignment, and what types

LINE April 2007

Tips ForSelling Through Consignment

In recent years, instances of foreign lottery fraud have continued to rise. Fortunately, more and more consumers across the U.S. and Canada have been contacting the Better Business Bureau to inquire about the legitimacy

of notices they received by mail and/or e-mail announcing they have won substantial sums of money in a foreign lottery. In fact, in 2006, the Better Business Bureau System received nearly 8,200 inquiries from consumers on foreign lottery scams, a 14 percent increase from the previous year.

In many of these fraud cases, the lottery notices are accompanied by a check or money order for several thousand dollars. Recipients are being instructed to deposit the checks and wire transfer all or portions of the money back to the company to pay for fees or taxes in order to receive their winnings.

The BBB does not want to see another honest, trusting person fall prey to a lottery scheme, and cannot stress too emphatically the dangers of responding to these types of correspondence. Even if no money is transferred to these organizations, simply providing an ID or bank account details to an unknown party makes consumers vulnerable to identity theft and fraudulent use of their bank accounts.

IdentifyingForeign Lottery Scams

used car is not in good condition and needs significant repairs, don’t believe promotional promises that claim you will be able to get “top value” for your car donation based on one of the lat-est published guides that show the av-erage regional prices for various used cars. If you are claiming that the car is worth $5,000 or more, you will need to get an official outside appraisal in or-der to substantiate the claimed value for the IRS.

Also, if you are claiming a car dona-tion of $500 or above, you will need to complete and attach IRS Form 8283 to your tax return. For your records, you also will need proof that you made a charitable gift. The best evidence is to transfer the title of the car to the char-ity and keep a copy of this document. This title change also will help you avoid potential problems that can occur if the car is somehow parked illegally by the organization or is involved in an acci-

dent or other mishap before the charity is able to resell the vehicle.

Why all the fuss? For some households, a car donation may be the single larg-est charitable gift made during the year, or ever. This is all the more reason to make sure that the donation is being used for the greatest charitable benefit and that you can take full advantage of any potential tax deduction. The BBB Wise Giving Alliance welcomes readers to contact us about their experiences with car donations. Visit www.give.org or call (703) 276-0100.

Vehicle Donation Checklist

• Verify that the recipient organiza-tion is tax exempt as a charity.

• Make sure the title of the car is transferred to the charity’s name and keep a copy of this record.

• Find out how the charity financially

benefits from the resale of the car.

• For tax records, take a photo of the car and keep copies of current classi-fied ads or guide value estimates for similar vehicles. (For more deductibility information, get a copy of IRS Publica-tion 561, Determining the Value of Do-nated Property.)

• If the car is worth more than $5,000, get a written professional appraisal.

• Find out if the charity is properly registered with the Charitable Solicita-tion Licensing Registry of the NC Secre-tary of State (website: www.secretary.state.nc.us/csl).

• Check out the charity with the Bet-ter Business Bureau.

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Better Business Bureau5540 Munford Rd., Ste. 130Raleigh, NC 27612

Member Line........919-277-4208Raleigh ...............919-277-4222Durham ..............919-688-6143Chapel Hill ...........919-967-0296Other ..................800-222-0950AutoLine .............800-955-5100Fax .....................919-277-4221Website .......... www.bbbenc.org

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Business LINE

8 BusinessLine • April 2007

What’s Inside:Spotting Rogue Movers 2

New Member Coffees 2

Tips on Donating Used Cars 3

More Work, More Scams 4

Avoid Ethics Problems 5

New Members 6

The Numbers 7

Continued from page 3

Continued on page 7 Continued on page 7