Can You Trust Second Life Charity?

At the foundation, we are interested in Second Life. For those who are not familiar, Second Life is a virtual 3D world that allows for users to create custom content, communicate with others in a virtual world and buy and sell items in a virtual currency. What makes it unique is that the virtual currency can be converted into real cash, allow for the conversion between the virtual and the real.

Commercial activities have evolved over the past year or so in Second Life to include things like virtual real estate, virtual products, etc. In the past little while, charities have started doing virtual fundraising by having virtual walkathons, virtual campaigns, etc. in Second Life. The virtual currency they raise they then convert to real dollars to help real people.

So here is the basic question - how do you ensure a trusted conversion between the fantasy and the real? In the case where a Second Life user is buying a virtual good, then there is no real issue - they pay virtual money and instantly get a virtual hat, a virtual house, etc. But if you donate virtual money to a virtual charity, how do you know that its really going to the charity? This is true for commercial conversions as well, e.g. if you pay in virtual currency for a physical good, how do ensure that the vendor is legitimate?

The number one objective for a fundraiser is raising money for their respective cause. But a very close number two is ensuring the maintenance of its brand, reputation and trust with its donors. Its critically important because its the only long term asset a fundraiser has at their disposal (in the same way as Nike, Sony, or Coca Cola).

There are a couple potential ways you can verify that a charity asking for money is legitimate and sanctioned:

• Check the charities web site. For example, the American Cancer Society publicizes its Second Life Relay for Life and provides instructions on how to get involved.
  
• Call the charity. If the person asking for money is legitimate, they'll be registered in some way as an event organizer.
  
• Ask the person in Second Life basic questions like: do you have a contact I can talk to, how do I verify that you work for the charity, do you have a tax number, etc. The person should have a way to give you information that can be verified - at least that shows the person has some basic knowledge of the charity they are promoting.

There are some people in Second Life who may be asking for donations and legitimately giving the money to a charity. However, without some way to verify it I would suggest you're better off donating directly to the charity.

If you cannot verify, I would not donate a single L$ as you have no way to ensure the money is actually going to charity.