The offer of a reward may spark or renew media interest in reporting on your missing child, “or might be what it takes to persuade someone who knows something to speak up,” says Yvonne Ambrose. However, rewards do not always produce the right leads or anticipated results. There are important considerations for managing donations and rewards.
As for other financial considerations, monetary donations and pledges can help finance the reward and ancillary search costs, and also provide support for your family if you are unable to work. But donations, if not managed properly, can result in legal and financial issues that add to the stress concerning your child’s case. The following are some important considerations for managing donations, rewards, and funds.
Checklist: Offering rewards and accepting monetary donations
Because legal and technical issues can arise from a reward offer, have a knowledgeable attorney, financial advisor, or banker with a fiduciary responsibility provide you with accurate information. Your primary law enforcement contact, banker, or parents of missing children who have successfully established a reward fund can also point you in the right direction. Ensure that those who give you advice have firsthand experience or qualifications in this area.
Some law enforcement agencies disapprove of reward offers because they can result in a torrent of false tips. If you decide to offer a reward, discuss cost-benefit considerations with them, emphasizing the importance of doing everything possible to generate information about the case. It may only take one solid lead to recover your child.
As you set up and activate your reward information using websites, QR codes, fliers, or special accounts, update your primary law enforcement contact on financial activity or decisions. This will help them advocate for and protect your family while investigating leads generated from the reward, or provide the press with answers about finances related to the case.
Decide what you want the reward to accomplish, then make sure its purpose is well defined in the offer. For example, make your child’s safe return a written condition of the reward. Providing thorough details about the reward can prevent disputes over whether someone complied with its terms. Unclear language can result in serious legal problems. Seek an attorney who may be able to offer free (pro bono) services to review and finalize the reward’s terms and conditions.
If a person meets your reward’s requirement, they may be legally entitled to the reward and can sue to claim it. Also refrain from using your own money for the reward. Based on the offer’s terms and conditions, you may be liable for the reward payment, and thus be sued for it. This problem can be exacerbated if your finances are drained because you need to take a leave of absence, resign from your job, or are out of work during the search for your child.
Do not offer more money than you can afford to pay. Decide on the amount of the reward and stick to it. If people think you might raise the amount later, they may wait for a more lucrative offer before calling in a lead.
Sometimes state and local agencies, as well as the FBI, have funds available for a reward in cases involving a predatory abduction. Ask your law enforcement contact about the availability of such funds.
The main goal of a reward is to generate immediate results so your child can be found as soon as possible. Initially, you may want to keep the time limit short. You could tie it to a significant event, such as your child’s birthday, which may help generate substantial public interest. Avoid open-ended rewards that can result in liability years later. If needed, you can renew the reward for a longer period.
It is much easier to persuade people to pledge money toward a reward than to donate cash. You cannot be sure a pledge will be honored when the time comes to pay the reward. If you decide to accept pledges, obtain them in writing, pay attention to their expiration dates, and plan to dedicate significant time to making sure all pledges are (and remain) legitimate.
Checklist: Managing monetary donations
Donations can be used for a variety of purposes, depending upon need. Ask that they be earmarked for a specific fund – such as the reward, the search, or family support. If a fund is not noted, ask one of your volunteers to call the donor and confirm where it should be applied.
Have both a lawyer and banker help you establish separate trusts or accounts, and oversee disbursements. Creating a trust fund – or at least establishing safeguards, such as requiring dual signatures on checks and maintaining accurate records – is crucial.
Do not solicit funds yourself; use volunteers for this purpose. Also, do not have signatory control over the funds. There have been instances in which individuals have attempted to extort reward money from parents by force. Protect yourself by giving a trustworthy source – such as an accountant or attorney – sole access to the funds.
Individuals with signature authority over the funds should keep proper records on income and expenditures. A list of donors should be maintained so thank-you letters can be sent. Copies of receipts for all expenditures should be retained in case questions arise. Ask a banker or accountant for pro bono help in establishing proper accounting procedures.
Be prepared for questions, which can turn into accusations, concerning the use of donated funds. Designate one person – either yourself or a trusted friend or family member – to answer questions about how funds are being spent. Also, never release information to the media about the amount of funds donated.
Ensure there are written procedures for how the money will be dispensed if not used for the reward. For example, you could specify that all donations over a certain amount will be returned (if the donor is traceable), or that unused funds will be donated to an organization or agency that helped with the search. Excess funds from the reward should never be used for the family’s personal expenses, since that was not the fund’s purpose. Have an attorney help you determine how to best handle this issue.
Being aware of extortion scams
In May 2021, the FBI warned of a trend involving scammers seeking to extort family members of missing persons. The scammers identify missing persons through social media posts, then gather information about the missing person and the family to legitimize their demands for ransom without ever having physical contact with the missing person. The extortionist obtains the family’s contact information online and manipulates the family into believing their loved one has been abducted, is at risk of abduction, or is in imminent danger. They then demand a quick, untraceable ransom payment (via Bitcoin or other electronic transaction), with the amount often ranging between $5,000 and $10,000.
If you find yourself the target of an extortion attempt related to your missing child:
- Immediately contact your local law enforcement agency or your local FBI field office (fbi.gov).
- File a complaint online with the FBI's Internet Crime Complaint Center at IC3.gov.
- Keep all original documentation, emails, text messages, and communication logs with the subject. Do not delete anything before law enforcement can review or retain it for investigation.
- Tell law enforcement everything about the online encounters, despite how embarrassing they may seem. Specifically, you will need to provide them with:
- The name and/or username of the subject.
- Email addresses and telephone numbers used by the subject.
- Websites used by the subject.
- A description of all interactions you have had with the subject.
Handling family finances in the midst of a missing child case
As an employee, your supervisor or manager may be understanding at first, but later require that you return to work or be let go so your position can be filled. It can be equally difficult if you are a business owner, or are self-employed, as you try to balance the needs of the search with your daily work. For most families of missing children, mounting financial concerns are inevitable. Consider the following:
- Victim compensation funds. Contact the U.S. Department of Justice’s Office for Victims of Crime or your state attorney general’s office to inquire about victim compensation funds. Such funds can cover lost wages and other crime-related expenses. More information is available in chapter 7.
- Extended leave. If you need to take a leave of absence from work, talk with your employer to find out what programs may be available to assist you. Some employers allow employees to donate excess leave time to a colleague in need. Ask a family member, close friend, or a religious/spiritual advisor to speak with your employer on your behalf, if needed.
- Bill payment extensions. Talk to mortgage and utility companies, as well as other creditors, to see if you can be granted extra time to pay your bills.
- Budgeting. Ask a friend or an accountant to help you rebudget your finances or assist you in restructuring your debt, such as consolidating payments and/or refinancing your house.
- Financial assistance. Ask your state missing child/persons clearinghouse about local resources such as social services and emergency financial assistance funds that might provide short- or long-term support.
Starting a nonprofit organization
As time passes in the search for your child, you may become frustrated and want to increase your level of activity. Some parents in this position establish a nonprofit organization (NPO). This can be a difficult
and complicated process, so it is important to determine if there are existing NPOs in your community dedicated to issues involving missing children. If NCMEC has a regional office in your community, they may be able to assist you.
A nonprofit organization must have a broad public purpose (that is, it cannot be devoted to a single child). Although state regulations vary, federal regulations are in place to assure the public that contributions are well managed and used for the organization’s stated purpose.
The following should be considered when establishing a tax-exempt NPO:
- You need a purpose or mission statement, articles of incorporation, bylaws, an operating budget, and a board of directors. You also will need to file necessary documentation with appropriate state and federal agencies.
- You must know the differences between for-profit and nonprofit organizations to maintain the NPO’s programmatic and fiscal health.
- You must keep meticulous files, including financial and corporate records, and understand that the files will be accessible to the public. You may also have to meet the standards of charitable watchdog agencies.
- You will need to develop a program that attracts enough interest and financial support for it to be sustainable.
- Consider using an existing NPO to serve as your fiscal agent.
A WORD OF CAUTION FROM PARENTS OF MISSING CHILDREN
Imagine undergoing the worst possible trauma and deciding that then would be a perfect time to start a new business. The startup and maintenance of a nonprofit organization can be incredibly challenging. Make sure you are surrounded by trusted friends or family who can do most of the work, especially at the beginning.