Maui, Hawaii Fires, Red Flags, Fundraising and Donations

By Sydney Sullivan

The devasting fires of August 8, 2023 cannot be accurately described in just words.

The array of feelings range from tremendous pain and sorrow, depression, PTSD, and shell-shocked to being too pissed to cry. People want answers and when they don’t get honest or straight answers, the void gets filled with all sorts of chaotic theories – many of which may be real and others just sensational “news” to get views. The truth is, we just don’t know all of the facts yet or reasons for some of the asinine statements or actions from people we’re supposed to trust.

There is a lot to take into consideration here, who, what, where and why??? – and these are not easily answered questions. Maui is a melting pot of cultures and nationalities that love and celebrate each other bringing a whole new meaning to pot luck. The children are some of the most beautiful ever seen.

If you’ve ever lived or visited Lahaina Town on the island of Maui, you know how special it was. Not just its rich history, and incredible mountain to ocean views, but the people on Maui and especially Lahaina are truly special.

Residents have always worked hard, sometimes 2, 3, 4 jobs in order to live here, as over the years it has become so expensive to live in paradise. Tourism has always been our main industry – at least for the last 30 years. Before that, pineapple and sugar cane were employable industries that have since closed and left a void, not only in jobs, but also in the fields they once maintained.

Along with disasters always come scammers and con men. They’re not always easy to spot because the really good ones put on a humanitarian front while providing their own links to donate to. They use victims to further their “views” which exposes them to more unsuspecting sympathetic people who donate without researching the company or “nonprofit” – and think because there is a “.org” or some celebrity is hawking it, that it is a legitimate tax-deductible operation, registered with the state who would oversee that the business operates under the state laws.

Who is going to take the time to research a business before making a $100 donation and the con men depend on that. They often prime their pump with their own monies or from someone in their circle, making it look like they have huge donations. You’ll see them make the rounds on social media, many times on high profile shows which they know will lend them credibility. It’s all part of the con.

Million$ of dollars are raised without accounting or transparency, just a lot of smoke and mirrors. And lots of times, especially in disasters like Lahaina, the state doesn’t get to these guys until it’s too late. The con men and money are gone, off to some non-extradition country.

How can you guard against making a mistake with your hard earned donations? In Hawaii, the first thing we do is a Business Name Search to see if we can find a registered business or nonprofit. No business registration or nonprofit (“.org”) General Excise Tax License should be a Red Flag.

First, watch for charities with names that sound similar to well-known, reputable organizations. Second, make sure to ask how your donation will be used and what percentage is actually going toward the cause. Third, do not pay in cash. Instead, donate by check or by credit card.

The Hawaii Attorney General’s office offers “Things to Consider” before starting a nonprofit that is well worth reading. It may be difficult to deduct your donation if you ultimately got scammed. Legitimate companies and nonprofits operate within the state laws – they don’t attempt to fly under the radar. Hawaii is one of 39 states that require charitable organizations, and those intending to solicit on their behalf, to register with the state in order to solicit contributions, whether they are a Hawaii organization or based out-of-state. 

“Any nonprofit group or organization located in Hawaii, unless exempt, must register with the Hawaii Attorney General. Any non-exempt nonprofit, in any state, intending to solicit in Hawaii must also register, along with anyone intending to solicit in Hawaii on behalf of a nonprofit.” 

Non-exempt nonprofits in Hawaii “might include traditional charitable organizations like the Red Cross or Habitat for Humanity, educational or policy organizations like the American Civil Liberties Union, or issue advocacy groups like the League of Conservation Voters.”

Here we are again, if its a legitimate business it will be registered in the State of Hawaii. Why does it matter? “But I like the videos – so what if he’s not legitimately registered with the state?”

Scammers are like predators. They use others unwittingly to make themselves look genuine. You’ll see some slight expenditures – but no transparent accounting and if they’re not registered with the state you have no leverage to make them open their books – from all their various accounts and con men usually have several donation sites because the more they have the more opportunity for views and to collect monies.

It’s usually not just one donation site, Go Fund Me or Give Send Go – it’s usually several and maybe some international websites and accounts for an even broader reach. These are more Red Flags.

You see where the cons will offer the disaster victim the opportunity to have a Go Fund Me site set up for them. It’s a magnanimous offer – with just one catch. Usually the victims are so distraught they don’t know how to manage the fundraising account, and the con – who set up the page, also set up the passwords that link to the withdrawal of funds.

Scam Examples

Sarah was the victim of a hurricane that destroyed most of her roof and soaked the interior of her house with flood waters. Along comes Charlie Tango and offers to help her with a Go Fund Me account. Sarah was extremely grateful for Charlie’s generosity which had built her trust. Charlie was easy to get a hold of for the first few weeks and when Sarah needed money from the funds raised on her devastating story, Charlie would quickly access the account and give her cash she asked for.

Sarah never bothered to write down the passwords and assumed Charlie would always be there. One day, Sarah couldn’t reach Charlie who was always so thoughtful and prompt at returning her calls. The days turned into weeks and finally Sarah tried to access her Go Fund Me account. She tried to opened the link and her page was missing along with Charlie, and her funds. *FIRST and MOST IMPORTANT LESSON: If someone else creates your fundraising page – immediately change the passwords to your own and give them to no one.

Think about it, if Charlie Tango had a thousand Sarahs who had each raised over $10K in donations, Charlie was sitting on a gold mine. Charlie had set them all up and had created their passwords.

When the donations peaked, Charlie Tango took off and was basically untraceable, and the victims had no money to even try to chase him. In Hawaii, depending upon how the page was set up and worded, a victim could still owe the General Excise Tax.

These scammers operate with grant writings too. Take the story about the local fishermen who were approached by Slick Willie who promised to write a grant for their fishermen’s club. The fishermen didn’t know anything about grant writing or what it meant, but were told it was basically free money that they did not have to pay back. The guys needed new nets and fishing equipment and it sounded like a super opportunity, so they agreed. Slick Willie wrote them a grant and gave them $10,000. Turns out later that the grant was written and processed for $70,000. Luke 8:17.

The Best Things You Can Do For Lahaina (not necessarily in any order)

No. 1 – Best donation to give is to come to Maui for vacation. The Lahaina survivors and the rest of Maui residents all have jobs and most of them are in the visitor industry, as tourism is our economy. We need you to vacation with us and support the finest island in the world. Maui is open for business in Wailea, Kihei, Hana, Kaanapali, Central Valley, Paia, Haiku – all beautiful destinations filled with Aloha.

No. 2 – Make donations to verified, well-known legitimate organizations, preferably where 100% of the funds go to the community, without the organizer taking out fees and/or expenses.

Verified Organizations

  • Maui Strong Fund – Everything from organizing volunteers to deploying financial resources. 100% funds go to the community, no fees taken.
  • Maui Mutual Aid – Funds and support to the displaced disabled, under or uninsured, and elderly ran by volunteers.
  • Maui Food Bank – For every dollar, they’re able to supply 4 meals to the hungry on Maui.
  • Safe Havens – 100% goes to food costs in making 500 meals a day for Maui shelters.  With more donations, they may get to 1000/day!
  • Maui Humane Society – Taking in and caring for displaced animals.
  • Aloha United Way – Donations will go directly to Maui United Way to support Maui victims. Do not confuse other sound-alike fire funds with our Aloha / Maui United Way.
  • King’s Cathedral – Your generous donation will support the affected families 
    and community on Maui.

No. 3 – Pray for Maui. Pray for the Lahaina victims, their families and friends that they find healing and strength to recover from this devastation and rebuild their lives.

Lastly, money is not the only thing needed by the victims, especially those that lost everything. And for most people money to donate is extremely tight these days.

If you have any unused, unopened cosmetics – as we all tend to get extras to test in gift bags when buying our favorite perfume, lipsticks, makeup, sunscreen and moisturizer, consider collecting these unused and unopen products with your friends and family and take or send your unopened collection to, for example King’s Cathedral.
These are everyday items that are generally needed and we don’t immediately think about providing them.

God Bless and Mahalo for reading. Please share this information so that it reaches those folks that may not realize what to look for when donating in Hawaii.

2 thoughts on “Maui, Hawaii Fires, Red Flags, Fundraising and Donations

  1. The first thing you do before setting up fundraising or establishing a nonprofit entity in Hawaii is get a General Excise Tax (GET) license. Very easy. You either register your entity online or walk-in to the tax Maui state tax (all islands have an office), fill out a short form and they give you the GET license on the spot.

    Once you have your nonprofit LEGALLY formed (through the Federal IRS with an EIN) you use that to submit to the state AG with their required forms. As long as you have the GET, it appears you may still accept donations, however – it would have to be accounted for like any other sale and may be subject to GET. It appears as a third-party fundraiser – you may still be subject to GET, with or without a non-profit. The nonprofit status basically allows donors to deduct their donations, but if you’re not legal it appears deductions may be questionable.

    Only if you were trying to skip the oversight of the state, would you fail to establish a GET license. https://tax.hawaii.gov/geninfo/get/

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