$749 Million Contributed at the Checkout in 2022

Last week, the NonProfit Times brought attention to the release of America’s Checkout Champions a biennial report issued by Engage for Good. This report shows that in 2022, American retailers raised more than $749 million for charities at various point-of-sale campaigns such as consumers rounding up their purchase to the nearest dollar with the overage going to charity. This was the sixth time Engage for Good has issued this report. This latest edition focused on 77 campaigns that each raised $1 million or more for charity. Examples of retailers mentioned in this report include eBay, Albertsons Companies, Walgreens, Costco Wholesale, and Walmart. The cumulative amount donated represented a 24% increase over what was raised in 2020.

Engage for Good also notes that 67% of the campaigns they researched consisted of enabling consumers to round off their purchases. While the most popular category of charity was children’s health, a variety of other causes were also featured such as hunger relief, needs in Ukraine, and disaster assistance. In addition, 43% of the companies featured were not part of the roster of participants they reviewed two years earlier, demonstrating a different mix of retailers was now engaged in these $1 million and above fundraising efforts.

In addition to the rounding up at the register donations, other campaign approaches include purchasing a paper icon for a fixed dollar amount that is displayed in the store, asking for a specified donation amount to be added to the amount paid by the consumer or a canister or similar coin collection device placed at the point of purchase.

BBB Wise Giving Alliance provides the following tips for consumers/donors invited to donate at the checkout:

Look for clarity in the ask. See if the retailer specifies which charities will receive the collected funds. If the campaign just references a cause, such as breast cancer, this may make it more difficult to find out how your donation will be used.

Don’t assume the charity has been vetted. If a specific charity has been named, we encourage potential donors to take the time to verify the trustworthiness of the selected charity. Visit Give.org to see the if the organization is a BBB Accredited Charity (i.e., meets the 20 BBB Charity Standards.)

If unsure, don’t be pressured to donate immediately. Be wary of excessive pressure to donate, even at the register. If interested, you can always donate at your next visit, after you’ve had a chance to find out more.

In turn, BBB WGA advises retailers to consider the following:

Make charity arrangements in writing. For various reasons, a company should have a written agreement with the specified charity giving the company permission to use the charity’s name and/or logo, specifying arrangements for when funds will be sent, and confirming that the charity will approve the disclosures made to consumers/donors in the campaign.

Verify accuracy of disclosures. Campaign transparency will be appreciated by customers but remember that they generally are the ones making the donation. The company usually serves as a go-between and forwards the cumulative funds that have been donated for the charity recipient(s). In 2022 a lawsuit was filed against a major retailer by a consumer who alleged the language used in a point-of sale charity campaign misled them.

Check out potential charity participants. Before engaging in a point-of-sale donation option, visit Give.org to find out if the potential charity partner meets the BBB Charity Standards.

Given its history and growth, BBB Wise Giving Alliance anticipates this form of fundraising will continue to grow in popularity both at brick and mortar retail locations as well as online.

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Video of the Week

As part of the Building Trust Video series, BBB WGA is pleased to provide an interview with Robin Van Etten, Global Chief Operating Officer of the International Fellowship of Christians and Jews (a BBB Accredited Charity) which funds humanitarian assistance in Israel and around the world, provides aid to victims of war and terror and funds security programs, and helps Jews escape poverty and anti-Semitism by immigrating to Israel. 

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Heart of Giving Podcast

This week’s Heart of Giving Podcast provides an interview with Nancy Brown, Executive Director and CEO, American Heart Association (a BBB Accredited Charity). Ms. Brown discusses her career and covers what kept her engaged and motivated to keep working with American Heart Association’s mission to spread awareness about heart disease and stroke.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Mercy Medical Angels
• Robert F. Kennedy Human Rights
• Atlanta BeltLine Partnership 

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

 

Wise Giving Wednesday: Introduces a Special New Series on Ukraine

BBB Wise Giving Alliance is proud to release the first entry in a new series of posts by Kateryna (Katya) Zhuk. Katya heads a Ukraine charity monitoring organization, Charity Tuner. This organization, along with BBB Wise Giving Alliance, are members of an association of standards-based charity monitors from around the world which recently held its annual meeting in Madrid, Spain.

Katya’s first post discusses her experiences as a Ukraine refugee in Warsaw, Poland and shares information about challenges being faced by Ukrainians that have fled to other nations as well as internally displaced people within Ukraine. Among other things, she describes the trauma and mental health struggles of these displaced populations.

This special series on Ukraine will consist of two new entries each month. To access Katya’s first article, click here.

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Video of the Week

As part of the Building Trust Video series, BBB WGA is pleased to provide an interview with Michael Wilson, Executive Director, VFW National Home (Veterans of Foreign Wars National Home for Children), a BBB Accredited Charity, which works to provide children and families of active-duty soldiers and war veterans with opportunities for growth in a nurturing community. The organization is located on a 629-acre campus and provides direct resources to approximately 140 residents at any given time.
 

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Heart of Giving Podcast

This week’s Heart of Giving Podcast provides Part II of a detailed interview with Darren Isom, Partner, The Bridgspan Group, San Francisco. Mr. Isom advises mission-driven organizations and philanthropic foundations in support of equity and justice. He also supports the firm’s work with arts and cultural organization.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• SAT-7 North America
• Kars4Kids
• Population Media Center

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

 

Police, Firefighter, or Veterans Groups that are “527 Political Organizations”

BBB Wise Giving Alliance and regional BBB organizations produce evaluative reports on charities. Generally, these are organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code. As a matter of long-standing practice, we do not seek to report on political parties or other entities raising funds for political candidates. Tuesday’s print edition of the New York Times, however, had a front-page story (“Tugging Hearts to Raise $89 Million, but Sending A Scant 1% to the Causes”) that identified several political organizations tax exempt under section 527 of the Internal Revenue Code that reportedly raised millions of dollars using robocalls for “building political support for police officers, veterans and firefighters…But just spent 1 percent of the money they raised to help candidates via donations, ads or targeted get out the votes messages….”

As in every category in the fundraising marketplace, there are well managed and sincere efforts as well as those that unfortunately take advantage of generosity for popular causes. While many donors may be familiar with police, firefighter and veterans groups that have raised charitable funds over the phone, they may not be aware that 527 political organizations also may be soliciting for groups that include the words police, firefighter or veterans in their name.

As a result, we provide the following tips to help individuals make more informed giving decisions:

Be Alert to Possible Name Confusion

The use of the words “police,” “firefighter” or “veterans” in the name of the organization does not necessarily mean that local law enforcement, firefighters or veterans are involved with the organization. The activities described in appeals can sometimes be vague. When in doubt, ask for written information to be sent to you or visit the organization’s website.

Donations May Not Be Tax Deductible

Contributions to police, firefighter or veterans organizations that are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code are deductible as charitable donations for federal income tax purposes. But not all such groups are charities. Some are tax exempt as fraternal organizations, benevolent life insurance associations or in the above new instance, a 527 political organization. Unless the organization is a charity, a contribution will probably not be deductible.  

Don’t Succumb to Pressure to Give

No matter which organization is calling, don’t be pressured into making an immediate donation decision. Honest efforts will welcome your donation at any time and will encourage uncertain call recipients to check them out.

Telemarketing Costs Can be Significant

Like all forms of fundraising, telemarketing can be managed well but it can also result in high expense. This is especially true for “cold” calls that solicit people who have not previously contributed. Those types of efforts can result in less than 20% of what is collected going to the named organization. Visit the latest financial statements that can be found on the group’s website. If the site does not provide access to financial information, that lack of transparency is a red flag. You can also go to the IRS website to access the latest IRS Form 990, the financial form annually filed by most nonprofit organizations. In Canada, visit the Revenue Canada website.

We recommend giving to charities that meet all 20 of the BBB Standards for Charity Accountability. Visit BBB’s Give.org to access free evaluative reports on charities.

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Video of the Week

As part of the Building Trust Video series, BBB WGA is pleased to provide an interview with Lynette Johnston, Executive Director, Society of St. Andrew (a BBB Accredited Charity) which develops community-based grassroots gleaning networks, where volunteers labor to pick, dig, or gather fresh produce remaining in fields after commercial harvest to reduce food waste and provide food to needy populations and food banks. The organization also acts as a consultant to churches and other nonprofit organizations and groups with a shared mission to implement best practices and effective programs. It also provides support, education, and religious edification to those in need.

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Heart of Giving Podcast

This week’s Heart of Giving Podcast provides a detailed interview with Darren Isom, Partner, The Bridgspan Group, San Francisco. Mr. Isom advises mission-driven organizations and philanthropic foundations in support of equity and justuice. He also supports the firm’s work with arts and cultural organization.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• The Pink Fund
• United Breast Cancer Foundation
• Mercy Corps

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

 

Misleading Appeals for Ohio Train Derailment

Earlier in the year, the news featured images of the tragic derailment of the Norfolk Southern trains in East Palestine, Ohio, that spewed toxic chemicals into the atmosphere and surrounding area. Many residents were forced to leave their homes. It is quite common that fundraising usually follows such disasters to help provide resources for those in need. Unfortunately, it can also attract those who seek to take advantage of the emotional reactions of generous donors.

Last month, the Office of the Attorney General in Ohio sued the Ohio Clean Water Fund for allegedly misrepresenting it was “…soliciting on behalf of the Second Harvest Food Bank of the Mahoning Valley to provide residents with emergency aid and bottled water.” Instead, the Attorney General claimed organizers “…pocketed at least $131,000 of the roughly $141,000 raised from more than 3,000 donors.”  The referenced food bank claimed this organization was not authorized to raise money on its behalf.  Additional details can be found in this link to the Motion for Temporary Restraining Order and Preliminary Injunction filed on April 10, 2023.

This circumstance helps underscore the importance of taking precautions when responding to charitable appeals in the wake of any type of disaster.

Typically, BBB Wise Giving Alliance urges donors to do the following, among other things:

Support experienced relief organizations. Charities with experience in addressing immediate emergency needs stand ready to provide quick and effective assistance. Donors should be cautious of newly formed efforts. Even if well intentioned, they may not be able to follow through on their promised goals.

Give directly to the charity doing the relief work. To help ensure that funds can be put to immediate use, it makes sense to give directly to the charity conducting the relief work rather than to another organization that distributes funds to others. That can add another level of unnecessary administrative expense.

Needs change over the course of a crisis. As the specific emergency needs of a community will evolve after a disaster, look at relief appeals carefully. For example, in East Palestine, initially food and clothing were sought by those in need. Later, water became a central cause of concern. The charity’s website should update potential donors about what they are currently addressing.

Verify the charity’s trustworthiness.  Rely on expert opinion when it comes to evaluating a charity. We recommend giving to charities that meet all 20 BBB Standards for Charity Accountability, found at BBB’s Give.org.

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Video of the Week

As part of the Building Trust Video series, BBB WGA interviews Hannah Bryeans, Director of Finance and Operations, Atlas Free (a BBB Accredited Charity) that seeks to provide a holistic approach to combat sexual exploitation and sex trafficking in 21 countries through a network of 27 local partners. The organization addresses key root causes of sexual slavery including poverty and social issues in vulnerable communities through outreach, education, vocational training, awareness, intervention, restoration and empowerment.

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Heart of Giving Podcast

For this week’s Heart of Giving Podcast, BBB WGA offers Part II of a conversation with Mari Kuraishi, the President of the Jessie Ball duPont Fund, a private foundation located in Jacksonville, Florida. Mari Kuraishi leads the Fund’s efforts to create communities of belonging by fostering inclusive growth and reducing structural and systemic barriers to resources and opportunity.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• BrightFocus Foundation
• National Council on U.S. – Arab Relations
• Pulmonary Fibrosis Foundation

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

 

Recognizes Mental Health Awareness Month

This edition of Wise Giving Wednesday recognizes Mental Health Awareness Month. Over the past few weeks, the news contained stories about shooting incidents, many of which were horrendous reactions to innocent activities. It would not be surprising to learn that some of us experience increased stress and anxiety from hearing about these circumstances. Those who are having stress symptoms should seek help and be open with their primary physician about the potential need for professional assistance, if warranted.

For those seeking BBB Accredited Charities (i.e., organizations that meet the 20 BBB Standards for Charity Accountability) that address mental health issues, here are some to consider. Keep in mind that as organizations address these issues in different ways, we encourage potential donors to review the program descriptions appearing on their websites.

Brain & Behavior Research Foundation (aka NARSAD) operates a grant program that funds scientific research into the causes, treatments, cures and prevention of chronic and severe mental illnesses including depression, schizophrenia, anxiety, autism, bipolar disorder, obsessive-compulsive disorder and post-traumatic stress disorder.

Mental Health America works to promote mental health as a part of overall wellness. Mental wellness includes prevention services, early identification and intervention, and integrated care services through advocacy, education, and research. The organization states that it collaborates with its 169 affiliates, supporters, and policymakers to advance federal legislation, regulations, and agency activities that promote its policy statements.

NAMI seeks to build better lives for Americans affected by mental illness through advocacy, awareness, education, and support. The organization’s trained volunteers oversee free peer-led education programs, skills training, and support sessions to community members.

Also, there are a number of veterans and military service organizations that address mental health issues. Some of the veterans’ groups, such as Wounded Warrior Project address Post-Traumatic Stress Disorder (PTSD). 

If you or someone you know is at risk for suicide, seek help immediately. Call the National Suicide Prevention Hotline at 800-273-TALK (8255) or visit suicidepreventionlifeline.org which is funded by the federal Substance Abuse and Mental Health Services Administration (SAMHSA).

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Heart of Giving Podcast

For this week’s Heart of Giving Podcast, BBB WGA offers Part I of a conversation with Mari Kuraishi, the President of the Jessie Ball duPont Fund, a private foundation located in Jacksonville, Florida. Mari Kuraishi leads the Fund’s efforts to create communities of belonging by fostering inclusive growth and reducing structural and systemic barriers to resources and opportunity.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Children International
• Girl Scouts of the USA
• National Geographic Society

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

 

New Colorado Privacy Regulations Take Effect July 1st

A recent article that appeared in the NonProfit Times reminds charities that a new Colorado Privacy Act (CPA) takes effect on July 1, 2023 and, unlike other similar legislation in other states, this law has no exception for nonprofits. Highlights of the rule appear in the Colorado Attorney General’s press release and additional details are available here.

Among other things, nonprofits and businesses will be required to:

• Confirm whether or not they process individuals’ personal data and provide them access to that information. 
• Enable individuals to opt out of the processing of their personal information. 
• Provide individuals the right to correct inaccurate personal information. 
• Provide individuals the right to have personal information deleted.
• Provide a meaningful privacy notice to individuals detailing their various rights.

Fortunately, BBB Accredited Charities (i.e., those that are found to meet all 20 BBB Charity Standards) already address these bullet points. BBB Charity Standards 18 (b), which addresses privacy concerns, requires charity websites to have a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

While Standard 18(b) was introduced as a voluntary standard to help protect donor privacy, we are encouraged that a state government appears to agree with these recommendations. This demonstrates that our standards accurately predicted some fundamental privacy principles that will become a required practice for many organizations starting this summer.

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Video of the Week

As part of the Building Trust Video series, BBB WGA interviews Mike Horak, Development Director, Denver Children’s Home (a BBB Accredited Charity) which serves as an educational and mental health treatment facility to help both children and families. The organization seeks to help children and families develop coping skills and tools to help them move past their trauma, find strength and value in themselves and pursue a successful future.

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Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with Shawnee Benton Gibson, CEO, Spirit of A Woman (S.O.W.) Leadership Development Institute and the Co-Founder of the ARIAH Foundation. Ms. Benton Gibson is the subject of a documentary called “Aftershock” which follows her and her family’s advocacy on reproductive issues.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• For All Seasons
• Polar Bears International
• Operation USA

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

 

Decline in Charity Volunteering

In a previous Wise Giving Wednesday post, we noted that 60.7 million people volunteered between September 2020 and 2021, comprising 23.2 percent of the U.S. population. As estimated by AmeriCorps, this represents 4.1 billion hours with an economic value of $122.9 billion. This total number of volunteers, however, reflected a 7 percent drop from the previous year which had a 30% volunteer rate. COVID-19 was blamed for that decrease in participation.

This week’s Chronicle of Philanthropy features a story about the continuing declining numbers of volunteers at charities, particularly Florida, where 23% of residents donated their time in 2017 that has now dropped to 16%. This drop has also been attributed to the pandemic which was particularly hard on older Americans which made up a sizable portion of those who volunteered in that state. The one exception has been Wyoming where volunteer participation increased from 33% in 2017 to almost 40% today.

The overall drop in volunteers was anticipated by charities. In March 2020, Give.org issued a Special COVID-19 Donor Trust Report that involved a survey of charitable organizations. At that time, 49.5% of charities said they were very or somewhat concerned about losing volunteers during the pandemic. In addition to this statistic on charity opinions, a separate survey of the general public revealed a declining perceived value of volunteering. When asked to identify the top three most impactful ways to make a difference with charities, 45% of the public said, “volunteering your time,” the second most popular answer in December 2018. This percentage dropped to 38%, third place, when that Donor Trust Report survey question was revisited in December 2021.

Volunteers make up a vital part of how charities achieve greater results with a small number of paid staff. Over time, charities will seek to rebuild this essential component of their operations. One lesson learned during the pandemic is the importance of maintaining communications with previous volunteers to help prepare them to transition back to participating with the charity when times improve. As donors consider their future volunteer options, we encourage them to also verify the charity’s trustworthiness by accessing the evaluative charity reports on Give.org.

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Heart of Giving Podcast

For this week’s Heart of Giving Podcast, BBB WGA shares Part II of its interview with Kateryna Zhuk, co-founder of Charity Turner, a Ukraine charity monitoring organization. She talks about the current situation in Ukraine, what charities are doing, and how we can contribute to help the people of Ukraine.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Refugees International
• Every Child Ministries
• National Down Syndrome Society

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

 

Online Giving is 12% of Total Fundraising

As websites, social media and other online communications continue to take a growing part of our daily lives, many assume that charity fundraising is also dominated by online transactions. While it is likely that technology will eventually lead to that result, the current reality is far from it. The Blackbaud Institute, which is associated with a cloud software and services company that works with nonprofits, has been measuring online giving for over 20 years. An analysis of 4,535 organizations by this group showed that in 2021, online giving was only 12% of total fundraising.

This 12% statistic, however, incorporates a significant diversity of circumstances. For example, smaller organizations with less that $1 million had 17.8% of their funds raised online during 2021. In contrast, larger nonprofits of $10 million or more completed 11.1% of their fundraising online. There are also different experiences depending on the type or charity. Religious organizations raised 16.8% online while environmental groups raised 5.1% online during 2021.

Also, the prevalence of smart phones has impacted online giving as a growing part of online donations. Back in 2015, 14% of online donations were made on mobile devices. In 2021, 28% of these gifts were made on mobile.

For now, direct mail, fundraising events, and other fundraising methods, particularly for nationally soliciting charities, still dominate. While donors should not expect that to change overnight, the online giving trend will continue to pick up speed as younger generations of givers are more likely to make their transactions online. At the same time, charities might help encourage more growth if more charity websites were optimized for mobile devices to make it easier for donors to contribute using their phones.

There are other influences that could help grow online fundraising even faster. As reported in the NonProfit Times, new postal rate increases might loom due in part to the drop in U.S. mail volume.

No matter how one chooses to contribute, we encourage donors to make sure the chosen charity meets the 20 BBB Standards for Charity Accountability.

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Heart of Giving Podcast

For this week’s Heart of Giving Podcast, BBB WGA interviews Kateryna Zhuk, co-founder of Charity Turner, a Ukraine charity monitoring organization. She talks about the current situation in Ukraine, what charities are doing, and how we can contribute to help the people of Ukraine.

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We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Urban Alliance 
• Fonkoze USA
• ICNA Relief USA

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

For those seeking to help the victims and families of the elementary school shooting in Nashville, Tennessee, the BBB offers the following tips to consider.

Does the solicitation respect the families of victims?
As charitable organizations and/or crowdfunding posts raise funds to help, they should obtain permission from the families to use either the names of the victims and/or any photographs of them. Don’t assume there is an official connection if photos are displayed.

Is there a description of the use of donations?
Be cautious about vague appeals that don’t identify the intended use of funds. For example, is money being collected for funeral expenses or other family needs? Also, unless told otherwise, donors will assume that contributed funds quickly collected after a tragedy will be distributed or spent just as quickly. Be mindful of public announcements that describe family assistance to help avoid donating to duplicative efforts.

Are donations tax deductible?
Contributions that are donor-restricted to help a specific individual/family are not deductible in the U.S. as charitable donations, even if the recipient organization is a charity. See IRS Publication 526, page 7, for more information on this subject.  

What should be considered in crowdfunding requests?
It is not unusual for fundraising to start within hours after a tragedy has occurred. Please keep in mind that while some crowdfunding sites take precautions in carefully screening, vetting, and managing postings after a tragedy, others might not. If you are unsure, review the posting procedures described on the crowdfunding site and find out about transaction fees and other specifics.

How can you verify a charity’s accountability?
Tragedies can generate donation requests from a variety of organizations seeking to help victims of violence or advocate on related issues. As always, we remind donors to check out charities by visiting Give.org to verify if the charity meets the 20 BBB Standards for Charity Accountability (i.e., a BBB Accredited Charity). Be cautious about newly created groups that will be difficult to check out.

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Video of the Week

As part of the Building Trust Video series, BBB Wise Giving Alliance interviews Sharif Aly, CEO of Islamic Relief USA (a BBB Accredited Charity.) Mr. Aly talks about the organization’s relief efforts in Turkey and Syria after the devastating earthquake.

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Heart of Giving Podcast

In this week’s program, BBB Wise Giving Alliance interviews Aimee Gilbreath, President of PetSmart Charities, (a BBB Accredited Charity) that grants funds to nonprofits aligned with its mission and partners with shelters to find forever homes for pets. Ms. Gilbreath discusses her love for animals and and what PetSmart Charities is doing in the animal welfare space.

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Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Make-A-Wish Foundation of America
• National Breast Cancer Coalition Fund
• Nonviolent Peaceforce

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

Virtually all small businesses receive contribution requests from charities addressing a variety of causes. For example, youth sports teams, health charities, disaster appeals and/or requests from police and firefighter organizations. While most organizations are carrying out their activities in a responsible manner, there are some charities that do not. Small businesses, unfortunately, may not have specialized staff or resources to manage donation requests and, as a result, can sometimes be more vulnerable than larger companies.

To help small businesses avoid questionable contribution circumstances, BBB Wise Giving Alliance offers the following advice.

Check with BBB.  For a variety of reasons, small business customers and clients will probably assume that any charity that is permitted to solicit on their property will have been verified by them. This is all the more motivation to not let them down. A small business should visit BBB.org or Give.org to see if they have a report that indicates the charity meets the 20 BBB Standards for Charity Accountability (i.e., a BBB Accredited Charity.)

Charity Registration with Government Agencies.  About 40 of the 50 states in the United States require charities to register, usually with the office of the attorney general or secretary of state. In Canada, businesses can check with the Canada Revenue Agency. Keep in mind that registration does not mean the government agency endorses, approves, or recommends the charity. It does, however, usually signal that the organization has at least completed the necessary paperwork, paid applicable fees, and has submitted necessary financial information to the applicable agency.

Clothing Donation Bins. If a business is approached about placing a metal clothing donation box near their parking lot or other publicly accessible area, make sure that the name of the charity is clearly identified on the bin along with a statement about how to get additional information, such as a phone number and/or website. The small business owner should ask the charity how the clothing donations will be used. One cannot assume they will be given to the needy. Some donations may be sold to thrift stores, turned into rag bond paper, or a combination of these possibilities. One should also ask how often the bin will be emptied and who can be contacted if the bin is not maintained in an orderly manner. 

Police and Firefighter Organizations. A small business should not assume that the words “police” or “firefighter” in an organization’s name means the local police force or fire department is involved. Also, watch out for a solicitor’s suggestion (it’s illegal) that your donation will give you “special treatment” from police or firefighters. For more tips on these groups, visit this link.

Excessive Pressure. Businesses should not succumb to excessive pressure to make an immediate donation. Well-run charities will welcome you to find out more about them so you might be motivated to make an even larger gift.  

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Video of the Week

As part of the Building Trust Video series, BBB Wise Giving Alliance interviews Michelle DeLaune, President & CEO, National Center for Missing and Exploited Children (a BBB Accredited Charity) which seeks “to operate a national clearinghouse on missing and sexually exploited children; assist efforts to find missing children and reduce child sexual exploitation.”

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Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with Mark Shamley, Vice President of Community Impact, Lift Orlando, which serves to strengthen the historic neighborhoods around Camping World Stadium in Orlando, Florida. Mr. Shamley is also a former Chair of the BBB Wise Giving Alliance Board of Directors.

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Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Central Asia Institute
• Human Rights Watch
• Preeclampsia Foundation

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.