Category: Wise Giving Wednesday

During Monday night’s football game, Damar Hamlin, Buffalo Bill’s safety, suffered a life-threatening event that is generating sympathy across the country. At the time this was posted, he is reported to be in critical condition at the University of Cincinnati hospital. BBB Wise Giving Alliance extends its prayers and hope for his recovery.

After a traumatic event hits the headlines, concerned supporters can respond by contributing to a charity that helps address the issue or donating to a cause favored by the individual(s) cited. For example, sports figures or other celebrities have initiated fundraising drives to help communities impacted by hurricanes. In this case, media reports that a crowdfunding page established by Damar Hamlin in 2020 to raise $2,500 for a toy drive in the community which helped raise him, received over $6.2 million dollars in contributions as of this morning. As stated on the crowdfunding descriptive, the Chasing M’s Foundation, which is sponsoring the drive, also seeks to engage in back-to-school drives, kids camps and other activities.

As the public is motivated to demonstrate its heartfelt get-well wishes by showing its support for this cause, the total amount raised is likely to grow further. We encourage donors to look for further announcements that may be posted about the intended use of funds raised.

Managing sudden and exponential growth can be a learning experience for even well-established charities. Challenges will include navigating legally appropriate state government registrations and managing unprecedented funds transparently and effectively. This can take time and talent. As we remain hopeful that Damar Hamlin’s health will progress for the better, once conditions allow, we encourage the organization to seek assistance to help oversee the large influx of money.

---

Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with one of the BBB Luminare Award for Service winners. In 2022, BBB Wise Giving Alliance partnered with the BBB of Great West & Pacific to honor individuals in the service area of this BBB (Alaska, Central Colorado, Hawaii, Idaho, Montana, Oregon, Washington, and Western Wyoming) who demonstrate compassion, volunteerism, and community leadership. This episode interviews Jeff Thongc, a Digital Solutions Strategist with JLT Web Solutions (a BBB Accredited Business), a local web design and digital marketing company in Kent, Washington, that supports local small businesses.

---

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:

• That Others May Live Foundation
• American Kidney Services
• Mercy For Animals

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.

With only a few days left before midnight strikes on December 31^st, many U.S. donors will make a last-minute gift to their favorite causes so that they can take a deduction on their income tax forms. While charities welcome gifts any time of year, some recognize this tax incentive can be important. With this in mind, we thought it would be helpful to provide some cautions and tips for those generous procrastinators.  

Itemize to Get Charitable Deductions.

During 2020 and 2021, U.S. taxpayers that took the standard deduction and did not itemize on their tax returns could still take a deduction for their charitable contributions (up to $300 for individuals, $600 for married couples). Unfortunately, this special allowance during COVID has expired and was not extended for 2022. The IRS announced that this “above the line” charitable deduction will not be available for 2022 income tax returns. Only taxpayers that itemize their deductions will be able to get a charitable deduction this time.  

Postmark It by December 31^st

If you are mailing a hard-copy check, it must be mailed to the charity and postmarked by December 31st to be eligible as a deduction for 2022. You might want to consider going to the Post Office and using a USPS Priority envelope and keep the receipt as evidence of when you mailed the gift. Alternatively, if you donate online by December 31st, seek to get a dated receipt of your contribution for your records.

Verify Tax-Exempt Status & State Registration.

While there are some exceptions (such as houses of worship), an organization must apply for and receive charitable tax-exempt status under section 501 (c)(3) of the Internal Revenue Code to receive gifts that are deductible for federal income tax purposes. You can verify an organization’s charitable tax-exempt status at this IRS link. Also, about 40 of the 50 states require charities to register with the Attorney General’s office or Secretary of State’s office. You can check the websites of these offices to see if the group is registered. Keep in mind that this tax status or state registration does not mean either the IRS or state government agency recommends or endorses the charity.

Click to Check. 

There is always time to check out the charity before one donates. With a few clicks on the Give.org website, you can verify if your selected charities are BBB Accredited (i.e., if they meet the 20 BBB Standards for Charity Accountability). Don’t succumb to pressure to donate before taking this simple step to help ensure that your generosity goes to trustworthy organizations.

Watch Out for Charity Fraud.

Donors should not let their guard down in making last minute donations. Con artists can strike when people are rushed to plan. Review the fraud awareness tips we previously shared to help avoid potential threats that can take place now or at any time of the year.

For our Canadian friends up north, they can check with the Canada Revenue Agency for information on government registration and tax information. Also, we encourage donors to check the IRS website to find out more about charitable deduction issues. 

---

 Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with one of the BBB Luminare Award for Service winners. In 2022, BBB Wise Giving Alliance partnered with the BBB of Great West & Pacific to honor individuals in the service area of this BBB (Alaska, Central Colorado, Hawaii, Idaho, Montana, Oregon, Washington, and Western Wyoming) who demonstrate compassion, volunteerism, and community leadership. This episode interviews Emily Berliner, the COO/Founder of EBO Consulting, Inc. (a BBB Accredited Business). In hopes of supporting a vital and sustainable business economy in Alaska, she founded EBO Consulting Inc. with the vision of entrepreneurship as a collaborative endeavor to bring great ideas to the community. This service not only helps small businesses, but local nonprofits, municipal corporations, and government agencies.

---

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:

• National Ataxia Foundation
• Seva Foundation
• International Rivers

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.

As this Wise Giving Wednesday is the last one posted in 2020, we want to take this opportunity to thank all those who visited Give.org this year to help them make more informed contribution decisions. In turn, we hope your generosity will extend to us as well as BBB Wise Giving Alliance is a charitable organization itself. Please consider making a donation to support our work.  

Contributions help us accomplish the following, among other things: 

• Public Outreach on Charity Issues: During 2020, we conducted outreach to various media outlets to provide wise giving advice on such things as charities addressing coronavirus, disaster appeals, and alerting both donors and charities to fraudulent communications seeking to take advantage of heartfelt generosity.
• In-Depth Charity Evaluations: The evaluative reports on nationally-soliciting charities produced by BBB Wise Giving Alliance share help donors verify charity trustworthiness by indicating which charities meet our 20 BBB Standards for Charity Accountability. In addition, BBB WGA staff counsels charities on what actions they can take to address concerns we bring to their attention. Many initial report conclusions are amended after the charity implements the recommended changes.
• Revised Give.org Website Launched: A newly designed version of the Give.org website was launched in July 2020 which included new features created to address the needs of three audiences: the donating public, charities and media.
• GiveSafely.io Launched: BBB WGA also launched a new donation platform, GiveSafely.io that provides a safe and transparent space for connecting donors with participating BBB Accredited Charities that were evaluated by BBB WGA. The site enables a donor to contribute to these charities while ensuring that personal information is secured by the blockchain and passed on to charities with donors’ consent.  
• Special Report on Coronavirus and Charitable Sector: In April 2020, BBB WGA distributed survey results that showed the anticipated initial impact on coronavirus on charitable giving. Most charities believed their 2020 revenues would be lower than expected this year while some donors had intentions to give more during 2020.
• Webinars and Intersessions:  This year, BBB WGA produced a series of webinars and virtual meetings (Intersessions) with charities. Among other things, this enabled charity executives to share information on coping strategies with coronavirus and also provided forums to discuss a variety of accountability and related issues to assist their operations.  
• Give.org Donor Trust Survey Study: We issued the third edition of the Give.org Donor Trust Report which further explored giving issues related to the pandemic as well as a three-year retrospective on BBB WGA Donor Trust Surveys. One of the findings was: the importance that donors place on trust before they give to charity has eroded for each of the past three years. Between December 2017 and August 2020, the portion of participants who place “high importance” on trust dropped from 73.0% to 63.6%.
• Sexual Harassment and Charities: We released the results of a special report on Sexual Harassment and the Charitable Sector. The report provides the results of a survey of 2,100 adults across the United States and more than 1,000 adults in Canada, exploring how donors react to allegations of sexual harassment involving a charity or house of worship. Among other things, the survey found that 22% of donors who heard such allegations reported that they no longer contribute to the organization and another 17% reported a reduction of support.
• Podcast Launched:  BBB WGA recently launched a new Podcast Series, the Heart of Giving, that features in-depth interviews with charity leaders and experts including: Judy Belk, President & CEO, California Wellness Foundation; Nancy Brown, CEO of American Heart Association; and Helen Gayle, President & CEO of Chicago Community Trust.
• Advancing Collaboration: The revised Give.org website also included an expanded section on Advancing Collaboration to encourage charities to consider collaborations to help them accomplish more than any single organization can do alone. One new section, Inspiring Collaboration, shares a series of interviews with charity leaders describing their approach to collaboration.

BBB Wise Giving Alliance is tax exempt as a charitable organization under section 501(c)(3) of the Internal Revenue Code. Like other nationally soliciting charities, we register to solicit with the appropriate state government agencies across the country. Here is a link to our state government disclosures as well as our latest annual report and financials. We look forward to accomplishing even more in 2021 and would be grateful for any support you provide.  Please consider donating to the BBB Wise Giving Alliance.

---

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring an interview with Andrea J. O’Neill, Executive Director, Lupus Research Alliance (a BBB Accredited Charity) which seeks to find better treatments and support medical research to ultimately prevent and cure systemic lupus erythematosus (SLE or lupus), a debilitating autoimmune disease.

---

 

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.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance

As donors make their year-end giving choices, households that are short on cash might consider giving alternatives such as donating goods. The recently released 2022 Give.org Donor Trust Report includes a five-year review of trust and giving attitudes by an online survey of over 2,000 adults in the U.S. and more than 1,000 in Canada. When respondents were asked to identify the top three most impactful ways to make a difference, 49% chose donating items like food and clothing. That result has consistently remained the highest result in five years (2017-2021) worth of survey data.

Clothing. Many charities welcome donated used clothing, in good condition, at any time during the year.  Be careful when donating through a metal collection bin. While some bins are maintained by responsible, well-managed charities, others may not be. Keep in mind that in most cases, used clothes are eventually sold in thrift stores. In only rare exceptions are clothes directly distributed to the needy. You can visit the charity’s website to find out more about how they use such contributions. Two well known charities that welcome used clothing donations are Salvation Army and Goodwill Industries. Here are links to our reports on the national offices of these organizations: Salvation Army and Goodwill Industries International. Both of them are BBB Accredited Charities

Nonperishable Food. The donation of nonperishable food, such as canned or boxed foods is another option. To help locate one of the many food banks across the nation, visit the website of Feeding America (a BBB Accredited Charity.)

Toys. There are a number of charities that welcome donated toys to help provide holiday gifts for needy children. Usually, they seek new, unused toys. Probably one of the most well-known charities in this area is the Marine Toys For Tots Foundation (a BBB Accredited Charity.)

Used Cars. Donating a vehicle is a popular end of year giving option. As a growing number of charities accept donated cars, don’t assume the latest car donation promotion is your only option. In most cases, donated cars are sold at auction with the charity receiving just a fixed amount or percentage of the sale. Be sure to review the tips on car donations page on Give.org to learn about precautions and red flags to consider when making such a generous gift. In addition, this IRS publication provides important tax deductibility information.

Before making a choice of which charity will receive your in-kind contribution, please check the evaluative reports that can be found on BBB’s Give.org to make sure the organization is BBB Accredited (i.e., meets the BBB Standards for Charity Accountability.)

---

Video of the Week

In this episode of our Building Trust Series, BBB WGA talks with Jeff Keith, Founder and CEO of Guardian Group (a BBB Accredited Charity.) Guardian Group’s mission is to prevent and disrupt the sex trafficking of women and children while enabling partners to identify victims and predators in the United States. The organization works with former special operations military, law enforcement and intelligence community professionals.

---

Heart of Giving Podcast

In this week’s Heart of Giving Podcast, Art Taylor, President & CEO, BBB Wise Giving Alliance interviews Brian Crimmins and Nathan Chappell. They discuss their new book “Generosity Crisis: The Case for Radical Connection to Solve Humanity’s Greatest Challenges.” The book features insights on the decline in the number of U.S. households that donate to charity and identifies potential solutions to this reduction of giving.

---

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:

• Salvation Army World Service Office
• USO
• Galapagos Conservancy

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.

Last week, we were proud to release the Give.org Donor Trust Report 2022: Five Year Review of Trust and Giving Attitudes. Our annual survey of over 2,000 adults in the U.S. and more than 1,000 in Canada reached its fifth year of production. It once again addressed issues about public trust in the charitable sector and sought to shed light on the relationship between donors and charities, with the goal of strengthening their bond. The top line result was that respondents showed an increase in “highly trusted” charities for 12 out of 13 charity categories. This highlight was featured in articles that appeared in both The NonProfit Times and The Chronicle of Philanthropy. Kathleen Enright, CEO of the Council on Foundations, noted, in the Chronicle article, that trust is a major factor in determining how and when donors decide to give to charity.

In an open-ended question that appeared in the Donor Trust Report, participants identified what makes them trust a charity. Top-of-mind reasons, by order of frequency were: (1) charity finances, (2) charity reputation and (3) honesty and transparency. There were generational differences, however, in how respondents interpreted financial accountability. While older participants are more likely to focus on how much a charity spends on fundraising and management activities, younger generations are more influenced by what the charity will do with the money and if they have clear recent accomplishments. See further details on this issue in the following infographic.   

As stated in the Donor Trust Report’s conclusions, “…public trust is both an asset and a lifeline.” Increased trust can help fuel charity resources but any decline in trust could pose a threat to the well-being of the charitable sector. BBB Wise Giving Alliance will continue to monitor these matters. The five-years’ worth of survey data will serve as a helpful foundation on which to further build a better understanding of public attitudes about trust in charities.

---

Video of the Week

As part of our Building Trust Video Series, BBB Wise Giving Alliance interviews Omoiye Kinney, Chief Marketing Officer of the United Way Worldwide (a BBB Accredited Charity). UWW’s stated purpose is to improve lives by mobilizing the caring power of communities around the world to advance the common good. 

---

Heart of Giving Podcast

This week’s Heart of Giving Podcast is part of the special series “Made by the Bay” sponsored by the Tipping Point Community to feature the work of people in the San Francisco Bay Area, working for the betterment of their community. This week BBB WGA’s guest is Tim Waters, Executive Director of Friends of the Children, SF Bay Area. This organization is engaged in a long-term professional mentoring program for children, seeking to build sustained and nurturing relationships.

---

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:

• American Kidney Services
• Seva Foundation
• One Percent for the Planet

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.

It may be hard to believe but GivingTuesday, the charity event which takes place on the Tuesday after Thanksgiving started ten years ago, in 2012. It evolved into a movement that has helped raise over $1 billion for online charitable giving around the globe and is now promoted by an organization devoted to this cause. To help donors in this spirit of generosity, which takes place on November 29^th this year, BBB Wise Giving Alliance offers the following advice.

Check BBB’s Give.org before contributing. There will be many options and opportunities to donate on GivingTuesday, but our best suggestion is to find out more about a charity before you contribute. Charities can demonstrate they are trustworthy by agreeing to in-depth evaluations in relation to the BBB Standards for Charity Accountability. Get free access to charity reports by visiting Give.org to find out if an organization is BBB Accredited (i.e., meets all 20 BBB Charity Standards.)

Be cautious about name confusion. When charities seek support for the same cause, the names can sometimes appear similar. Before you give, be sure you have the exact name of the charity to avoid a case of mistaken identity.

Understand registration requirements. In the U.S., about 40 states require charities to register with a government agency, usually a division of either the Attorney General’s office or Secretary of State’s office. (In Canada, check with the Canada Revenue Agency.) Keep in mind that registration with a government agency does not mean the government approves, recommends, or endorses the charity.

Consider tax-exempt status. There are over 1 million organizations that have applied for and received charitable tax-exempt status under section 501(c)(3) of the Internal Revenue Code. In part, this means these groups are eligible to receive gifts that are deductible as charitable donations and will file an annual financial form with the IRS. It does not mean the Internal Revenue Service approves, recommends or endorses the charity. The following link provides access to IRS information on charities.

Watch out for overly emotional appeals. If an appeal brings tears to your eyes, make sure it is also clear about what the charity intends to do to address the issues. Visit the charities website for details about their program services.

---

Heart of Giving Podcast

This week’s Heart of Giving Podcast is part of our special series “Made by the Bay” sponsored by the Tipping Point Community to feature the activities of people in the San Francisco Bay Area working for the betterment of their community. This week, our guest is James Walker, Founder & President at Diogenes Community Solutions. Mr. Walker talks about a project that was conceptualized in the wake of George Floyd’s death and committed to raising awareness of historical disparities, empowering disconnected communities, and driving strategies that break cycles of inequality.

---

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:

• KABOOM!
• Soles4Souls 
• TSC Alliance

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.

About BBB Wise Giving Alliance:  BBB Wise Giving Alliance (BBB’s Give.org) is a standards-based charity evaluator that seeks to verify the trustworthiness of nationally soliciting charities by completing rigorous evaluations based on 20 holistic standards that address charity governance, results reporting, finances, fundraising, appeal accuracy and other issues. National charity reports are produced by BBB’s Give.org and local charity reports are produced by local Better Business Bureaus – all reports are available at Give.org.

With 45 days left in the year, now is a great time to make year end giving plans so that you are not rushed at the last minute. There will be many reminders to make donations such as GivingTuesday which takes place on November 29^th and, of course, the holiday season when our thoughts turn to helping others. To assist with your giving choices, BBB Wise Giving Alliance offers the following suggestions.

Alternatives to Cash Contributions. If money is tight due to inflation and other demands, remember there are other ways to help. Consider donating nonperishable food to food banks. Some communities organize donations of warm coats in good condition. And don’t forget a number of charities that welcome donated toys to help needy children. The earlier you help these efforts, the more likely your generosity will do the most good, as soon as possible.

Ukraine Relief. Remember there are international relief organizations that continue to provide help to areas of Ukraine. As the war continues, demands grow for medicines, food and other urgent items. Some groups are continuing to work with local Ukraine charities and houses of worship to help distribute assistance.

Hurricane Fiona and Hurricane Ian Recovery Efforts. The billions of dollars of damage inflicted by theses storms are still being felt in Puerto Rico, West Coast of Florida, and Canada’s Atlantic Coast as they seek to continue cleaning up and work towards rebuilding. These are long term goals that will need additional support to succeed. Remember these areas as you make your end of year giving decisions.

Buffalo, New York and Uvalde, Texas. Consider providing help to charities located in areas that continue to struggle from mass shooting tragedies that shook the nation. The need goes beyond just the families of victims but to the community as a whole which still seeks to recover from this devastating loss of trust and safety.

Favorite Causes: Of course, don’t forget to donate to your favorite organizations as well. But we also recommend you take the time to visit Give.org to verify if the chosen charity meets the 20 BBB Standards for Charity Accountability.

---

Video of the Week

As part of our Building Trust Video Series, we interview Scott Black, Executive Director of the Xerces Society for Invertebrate Conservation (a BBB Accredited Charity). The Xerces Society works to protect the natural world through the conservation of invertebrates and their habitats.

---

Heart of Giving Podcast

This week’s Heart of Giving Podcast is part of our special series “Made by the Bay” sponsored by the Tipping Point Community to feature the activities of people in the San Francisco Bay Area working for the betterment of their community. This week, our guest is Manu Meel, the CEO of BridgeUSA, a youth-led nonprofit organization that creates spaces on high school and college campuses for open discussion between students about political issues.

---

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:

• Bread for the World Institute
• Community Advocates
• Melanoma Research 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.

This Veterans Day (Remembrance Day in Canada), think of the needs of veterans, military service members, and/or their families. BBB Wise Giving Alliance also offers some tips to help contributors make wise giving decisions about charities that address this community.

• Avoid Mistaken Identity. Some veterans charities include the same words in different order or slightly different form. So, be alert and make sure the organization you are considering is the one you want to support.
• Find Out What They Do. Don’t assume what the veterans organization does based on their name alone. Look for a clear description of the organization’s programs in its appeals and on its website.
• Ask How Donated Items Will Be Used. Find out how the charity benefits from the collection and resale of used clothing, cars and other in-kind donations. Sometimes the charity receives only a small portion of the resale price of the item or may have a contractual arrangement with a third-party to get a flat fee for each sale.
• Check Give.org: In addition to charity reports on BBB’s Give.org, check with your state government’s charity registration agency, usually a division of either the Attorney General’s office or Secretary of State’s office. In Canada, check with the Canada Revenue Agency.

For more giving advice and to access a list of BBB Accredited Charities (i.e., meets all 20 BBB Charity Standards) that address veterans and military service issues, see the following link.

---

Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB Wise Giving Alliance introduces a special series “Made by the Bay” sponsored by the Tipping Point Community to feature the work of people in the Bay area, working for the betterment of their community. This week’s guest is LaSaunda Tate, Chief Operating Officer, Homeward Bound of Marin, which provides homeless shelters and services for homeless families and individuals in Marin, California.

---

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:

• Anera
• Wildlife Rescue and Rehabilitation
• PATH

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.

The more we depend on technology, the more vulnerable we can be to cybersecurity issues, unless active steps are taken to avoid potential trouble. For this Wise Giving Wednesday, we focus on basic measures that are relevant to both donors and charities in addressing online security issues.

Powerful Passwords

We have so much to remember in our daily lives that we sometimes cut corners, just to make things a little easier. A simple password might seem practical, but it could put your personal information or organization’s data at serious risk. To be safe, experts recommend using 12 characters, with some combination of lower-case letters, upper-case letters, numbers and two symbols. Although this might require you to keep a written password index or sign up with an app that provides a “safe” for all your passwords, a stronger password is an inexpensive and helpful way of strengthening security. For added protection, organizations also might consider a two-step verification process, for accessing their networks, such as a code number that is sent to an individual’s phone. Periodically change passwords, at least every six months.

Defending Data

Charities and individuals should make sure they individually backup up all their data. The more frequent the backup, the better protected one will be from ransomware attacks or a laptop that gets fried due to a power surge, beverage spill or accident.

Measures Against Malware

Charities and individuals can subscribe to a malware and virus protection service that automatically updates security for all the laptops and computers in use. This will help prevent inappropriate and malicious programs from being accidentally downloaded. Equally important is to watch out for suspicious emails that ask you to click on a link, they can also be in disguise by making it appear they come from an official source or colleague. Sometimes there are clues in the false emails such as misspellings in the message and/or the sender having an odd-looking address.

Respond and Recover

Make a practice cyber incident response plan, so that you know what to do in case a serious problem emerges. For charities, each staff member should know what steps they should automatically take if a breach occurs. For individuals, have an accessible and secure place that stores all your passwords in case you need to change them quickly, you won’t have to search for them. Know which authorities may need to be contacted.

This is just a short list of possible protections, there are other steps that can be taken, but we hope this provides a trusted place to start.

---

Heart of Giving Podcast

This week’s Heart of Giving Podcast includes a detailed interview with Martin “Marty” Rodgers, who serves as Accenture’s market unit lead for the US South and the office managing director for the Washington, D.C. Metro Area. Marty is an outspoken advocate of social responsibility and is committed to inclusion and diversity.

---

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:

• Action Against Hunger
• GoodVision USA
• United States Association for UNHCR

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.

A front-page article in the Sunday sports section of The Washington Post (Stubbs, Roman, Cash Keeps Disappearing from Youth Sports Clubs, 10/16/2022) provides an overview of financial embezzlement allegations about a soccer sports club in Oregon and identifies examples of other circumstances where funds were stolen at clubs in Nebraska, Wisconsin, Michigan, and Virginia. While youth sports can be a unifying force in communities across the country, they unfortunately can fall victim to fraud or poorly managed funds if care is not taken to ensure proper oversight. As the vast majority of these clubs operate as organizations that are tax-exempt as charitable organizations under section 501(c)(3) of the Internal Revenue Code, this edition of Wise Giving Wednesday will offer some tips to help prevent sports club fraud.  Some clubs can be quite large and can range from hundreds of thousands in revenue to over a million dollars or more.

Tax-Exempt Status

Youth sports teams in the U.S. should apply for charitable tax-exempt status from the IRS. Keep in mind that the receipt of such charity status does not mean the IRS endorses, approves or recommends the club. It helps ensure that donations made to the organization are deductible as charitable contributions for federal income tax purposes. If the club is small, and brings in less than $50,000, an IRS 990-N, an electronic postcard, is required to be annually filed by the organization. If total revenue exceeds $50,000, the club will need to annually complete an IRS Form 990-EZ or the IRS Form 990, which involves a more detailed financial report. These financial reports are available for public access by the IRS. (If the sports club operates as a program of a house of worship, it will probably not be required to apply for charitable tax-exempt status or file financial information with the IRS.)

State Government Registration

About 40 of the 50 states in the U.S. require charities to register with the attorney’s general office or secretary of state. The rules vary form state to state and may not require groups to register if they are below a certain size, but requirements usually involve filing an annual form, paying an annual fee, and enclosing financial information such as the IRS Form 990, and, for larger organizations, an audited financial statement. As with the IRS, this registration does not mean the state government approves, endorses or recommends the club. In Canada, check with the Canada Revenue Agency.

Board Oversight

A volunteer board of directors that is actively engaged in oversight of the club’s hired manager is one of the best defenses against fraud. As recommended in BBB Charity Standard 1, the board should provide adequate oversight of operations such as approval of the annual budget, assigning a volunteer director to serve in the role of treasurer, and periodically receiving and reviewing financial reports at meetings. Other measures to provide disbursement controls include avoiding, as best as possible, the direct collection of cash at fundraising events, and adopting and implementing a conflict-of-interest policy. If possible, the board volunteer assigned the role of treasurer should have some experience handling finances as an accountant or business manager, for example.

Background Checks

Before hiring a sports club manager, a background check should be conducted to ensure that the individual does not have a record of mishandling finances at previous positions. If, in the future, the club experiences allegations of potential theft, it should contact government authorities for appropriate action. If a club decides to avoid bad publicity by just dismissing the individual, that might enable the same person to repeat this behavior in other communities.

Internal Financial Controls

Clubs should also implement internal controls to help reduce the potential mishandling of funds. Examples include, requiring at least two signatures for expenditures above a specified amount, reviewing expense reimbursements to employees, and ensuring proper handling of any donor restricted funds. Also, to avoid credit card fraud, there should be a review of monthly credit card invoices and restricted access to the use of the card for club business.

For additional guidance on board responsibilities and other accountability recommendations, see the 20 BBB Standards for Charity Accountability.

---

Heart of Giving Podcast

In this week’s Heart of Giving Podcast, Art Taylor, President & CEO, BBB Wise Giving Alliance, shares his insights on Diversity, Equity, Inclusion, and Accessibility (DEIA) and how the charitable sector can help lead the nation in dealing with some of the challenges in addressing this issue.

---

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:

• Autism Society of America
• Road Runners Club of America
• National Abortion Federation

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.