Category: Wise Giving Wednesday

  • Wise Giving Wednesday: When is a Related-Party Transaction a Conflict?

    Wise Giving Wednesday: When is a Related-Party Transaction a Conflict?

     

    Most charities today have some type of conflict-of-interest policy that helps them identify the existence of charity transactions with a related party such as a staff or board-related firm. The existence of such a policy, while helpful, does not automatically mean the charity has automatically resolved problems that can take place in such circumstances. This is where a review of the individual circumstances becomes important as no two transactions are exactly alike. These factors include, but are not limited to, the amount of the transaction, whether the interested board member participated in the board vote on this purchase, if competitive bids were taken and whether this was a one-time or ongoing transaction.  Examples of transactions that raise a red-flag of a potential conflict are:

    • An organization hires the same IT services firm for five years while the principal of that firm sits on the governing board.
    • The grants approval committee of the charity’s governing board has decided that almost all of its grants will go to board member affiliated charities.
    • A charity makes a significant financial loan to an executive staff member so he can make major renovations on his home.

    The fifth standard in the BBB Standards for Charity Accountability calls for no transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. This standard is intended to cover related-party transactions ranging from significant charity purchases of goods or services, grants and donations to board-member affiliated charities and loans made to board or staff members. In determining if a charity meets this standard, the BBB WGA will ask the charity what steps were taken to ensure that a related-party transaction is not a conflict. In some instances, however, the transaction may be so significant that it raises concerns with this standard even if measures are taken. 

    When donors place their trust in a charity, they expect the charity’s mission, not personal financial gain, to be the motivation for leadership decisions made by the board of directors and paid staff. In some ways, this is one of the core distinctions between a for-profit business and a not-for-profit organization. So, when this expectation is violated, contributors may feel betrayed or deceived.


    Video of the Week

    As part of our Ukraine Relief Charity Interview Series, BBB WGA is pleased to provide an interview with Jeanne Dillner, CEO of SIGN Fracture Care International (a BBB Accredited Charity) which is engaged in relief efforts in and around Ukraine such as sending orthopaedic supplies to hospitals.
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB WGA interviews Angela Williams, the President and CEO of United Way Worldwide (a BBB Accredited Charity). With more than 30 years of leadership experience in the nonprofit and corporate sectors and named to Forbes’ 2021 List of Women 50 Over 50 Creating Social Change at Scale, Angela Williams brings a long history of purpose-driven work to her new role at United Way.


    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:

    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: School Fundraising

    Wise Giving Wednesday: School Fundraising

     


    Children will begin returning to school starting in August and continuing into September. While parents may be focusing on getting the best deals on school supplies, some may be asked to help raise money for class projects, trips and other activities not covered by existing school finances. These activities can range anywhere from selling chocolates to gift wrapping. Here are some tips for parents to consider in managing such activities:

    • Set specific goals or plans before you start to raise funds. What is the total amount needed and how much time do you have to raise it?
    • Make sure the school informs parents either online or in hard copy with any needed instructions about the campaign.
    • Review the fundraising promotions created to make sure they accurately and adequately explain the nature of the school activities being funded.
    • Identify who will be in charge. Usually, a specified parent or other volunteer will keep track of collecting and recording of donations received.
    • Share information with parents and other volunteers about how much was raised.
    • Appreciate the generosity of contributors by sending thank you notes to them.
    • Create a feedback form that will help identify needed improvements to do even a better job next time.

    There are online giving platforms that help raise money for classroom projects. A school or teacher may consider posting a request on such sites to raise money for a designated need. If so, review the site’s procedures and rules to clearly understand how your support can help. Also, visit Give.org to see if the charity meets the 20 BBB Standards for Charity Accountability.


    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a video interview featuring Jamie Amelio, founder and CEO, Caring for Cambodia (a BBB Accredited Charity) that seeks to educate a generation of Cambodian children today, to make a difference for Cambodia’s tomorrow. CFC reports that it provides education to 6,600 students at 12 preschools, 5 primary schools, 2 junior high schools and 2 senior high schools in Siem Reap, Cambodia. Classrooms are safe, modern and technologically equipped. The organization mentors and professionally trains teaching staff and funds supplies and other tools needed to teach.
     


    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:

    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: Charity Websites 101

    Wise Giving Wednesday: Charity Websites 101

     


    While we encourage potential donors to access charity reports on BBB’s Give.org to verify charity trustworthiness, the content of a charity’s website is also helpful. Among other things, the presence or absence of certain materials can send a signal about the charity’s transparency, and its interest in assisting donors in making an informed choice. With this in mind, here are some things to look for when visiting charity websites.

    • Access to basic facts. A charity website should have basic facts about the charity’s mission, major programs, governance and finances in an accessible area of the website. This recommended content is covered in BBB Charity Standard 17 which calls for charity websites to include the same information you would typically find in an annual report, such as a description of the charities mission and activities in the past year, financial information, and a roster of the governing board. In addition, the website should provide access to the organization’s most recently filed IRS Form 990, the annual financial form filed with the Internal Revenue Service. 
    • Donor privacy. Make sure the charity’s website has a privacy policy that addresses how your personal information is being collected and used as well as what protections are in place to help secure that data. BBB Charity Standard 18 calls for certain information to appear in that policy. Keep in mind that charities may collect personal information beyond the donation form that is provided, such as through emails or other communications they might have with visitors.
    • Finding financial statements. As many donors seek out information on charity finances, most charity websites make it easy to locate those details. If on the other hand, a charity website requires a little bit of hunting to find financial statements, that might be signaling a potential concern. For example, one might be cautious if the website only provides a financial summary but not the latest IRS Form 990 or (if applicable) the complete audited financial statements. Keep in mind, we also urge donors to consider much more than finances when making a giving decision. In addition, if the charity organization is a house of worship or is an affiliated entity of a house of worship, it is not required to file an IRS Form 990.
    • Provide feedback. Charities want to hear from donors and generally encourage feedback on their websites. Take that opportunity to let them know what additional information you would like to see and any recommendations on how the website can be improved. They will value and appreciate your input.

    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a video interview featuring Saleem Zaru, Executive Director, United Palestinian Appeal (a BBB Accredited Charity) that works to assist impoverished Palestinians through its four program areas: community and economic development, education, health and wellness, and outreach. The organization states that it launches its own programs and builds long-term relationships with partners in Palestinian territories, the refugee camps in Lebanon and Jordan, and the world at large.
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB WGA interviews Kimberly Bryant, the Founder of Black Girls CODE, a charity dedicated to “changing the face of technology” by introducing girls of color (ages 7-17) to the field of technology and computer science with a concentration on entrepreneurial concepts. 

    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:

    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: Helping During the Heat Wave

    Wise Giving Wednesday: Helping During the Heat Wave

     


    Unusually high temperatures and humidity continue to blanket much of the United States. Overseas, the United Kingdom, France, Spain, Greece, and Portugal are also experiencing record-breaking heat waves. Some donors may seek to help those who are most vulnerable. BBB Wise Giving Alliance offers the following giving tips.

    1. Food banks welcome your help. As reported by Feeding America (a BBB Accredited Charity) more than 38 million people, including 12 million children in the United States, are food insecure. More families may reach out to their local food banks for support during these times. The heat wave may also put stress on the volunteers available for distribution. Contact your local food bank to help identify their needs.  
    2. Homeless seek relief. When temperatures approach 100 degrees, the homeless become particularly vulnerable. Homeless shelters in your area may provide cooling relief and may be in need of other basic necessities, such as bottled water and sunscreen.
    3. Review heat safety advice. This week the American Red Cross (a BBB Accredited Charity) posted a list of ten heat safety tips to reduce risks of developing heat-related illnesses, especially for older people with chronic medical conditions. Although many of these tips, such as staying hydrated, are common sense, heat strokes can be life-threatening.
    4. Help wildfire first responders. Dry, heated conditions sparked wildfires in North Texas. Parts of California also battle wildfires amid rising temperatures. Relief organizations such as Direct Relief (a BBB Accredited Charity) respond to wildfires each year by, among other things, providing masks, medicines and other resources to health agencies and first responders.
    5. Support environmental groups addressing climate change. Visit Give.org to see if a charity addressing climate change issues meets the 20 BBB Standards for Charity Accountability. These BBB Accredited charities include: Environmental Defense FundNature Conservancy and Sierra Club Foundation

    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a video featuring an interview with Miki Jordan, President & CEO of Wayfinder Family Services (a BBB Accredited Charity), which offers services for individuals of all ages with vision loss and, often, additional disabilities through the organization’s early intervention, education, recreation, mental health, workforce readiness and rehabilitation services.  


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB WGA interviews Taylor Hebble, Chief Marketing Officer, Hope for Haiti. Ms. Hebble is a brand management and social impact professional specializing in public relations, campaign strategy and community engagement.


    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:

    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: Tax-Exempt Status Is Not an Endorsement

    Wise Giving Wednesday: Tax-Exempt Status Is Not an Endorsement

     

    Last week’s Wise Giving Wednesday featured the indictment by the Brooklyn District Attorney along with the New York Office of the Attorney General of a man that allegedly created dozens of fraudulent charities. As part of this scheme, the individual allegedly applied for and received charitable tax-exempt status from the IRS using Form 1023-EZ.  This shorter version of the application for tax-exempt status (3 pages instead of the 28-pages for the regular Form 1023) was initially introduced in 2014 and is used by smaller charities with annual incomes of $50,000 or less. While the initial intention for this EZ version was to lessen application challenges for smaller charities, reduce a backlog of cases by the IRS, and address political controversies, it also received early criticism that it might lead to potential additional abuse and fraud. Although it may be difficult to identify how prevalent such problems are with the 1023-EZ application, it may be helpful to view this IRS issue with a broader lens.

    As noted in the IRS Compliance Guide for 501(c)(3) Public Charities, the focus is on explaining how charities can comply with federal tax law to maintain their tax-exempt status. Although some turn to the Internal Revenue Service when problems emerge with charitable organizations, this agency was never established to serve in this overarching regulatory role. Also, the fact that an organization has received charitable tax-exempt status, does not mean that the IRS approves, endorses or recommends the charity to potential donors. Rather, it demonstrates that they have filed the appropriate application and, when required, annual financial information, to be exempt from paying federal income tax on the revenue it receives. In turn, donors can receive a tax deduction for contributions made to the organization. In terms of potential abuse, the IRS does look into such issues as charity transactions with related parties, unreasonable compensation, and other excess benefit transactions.

    For the most part, state charity regulators (such as state offices of the Attorneys General and the Secretaries of State) serve as the primary regulators of charities. The majority of states require charities to annually register and file financial information if they intend to solicit for charitable donations in that state. And, they are most likely to take action against charities found violating the duties of obedienceloyalty and care in how they manage the assets of the organization. When identified, states also can act on misleading appeals and/or fundraising campaigns that are not properly administered. But, states are also quick to point out that registration with a state agency does not constitute or imply endorsement, approval or recommendation by that state.

    As a standards-based charity evaluator, however, BBB Wise Giving Alliance looks beyond the legal requirements in completing its reports on charities. While some of these issues in the BBB Standards for Charity Accountability overlap with legal requirements, the specific recommendations included in these standards, in many instances, call for practices that stretch beyond what the law can address. The distinction between legal requirements and voluntary recommendations is also reflected in the language used to describe them. One complies with regulations because the law requires it, in contrast one meets a standard if one chooses to follow it. In some ways, BBB Wise Giving Alliance seeks to help fill the trust gap between what charities are required to do by law and what the public expects them to do as good stewards of their generosity.


    Video of the Week

    This week’s Video of the Week revisits a previous interview with Kim Callinan, President & CEO of Compassion & Choices (a BBB Accredited Charity) which works “to improve care, expand options and empower everyone to chart their end-of-life journey.” The organization works across the nation in communities, state legislatures, Congress, courts and medical settings to educate the public about the importance of documenting end-of-life values and priorities and about the full range of available options.
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB WGA interviews Elizabeth Clay Roy. Elizabeth is the CEO of Generation Citizen, which partners with schools to provide 6th-12th grade students with the knowledge and skills they need to actively participate in democracy.

    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:

    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: New York Man Indicted for Fraudulent Appeals

    Wise Giving Wednesday: New York Man Indicted for Fraudulent Appeals

     

    A man from Staten Island, New York was recently indicted by the New York Attorney General’s office “…with grand larceny and related charges for allegedly forming 23 fraudulent charitable entities and collecting at least $152,000 in donations that were never put to any charitable purpose. Many of the charities included the words ‘American Cancer Society’ or ‘United Way’ with added qualifying language to allegedly mislead potential donors.”  These entities had no affiliation with these well-known charitable organizations. In addition, as noted in a July 3rd front page article in The New York Times, this individual allegedly applied for and received 501(c)(3) charitable tax-exempt status from the Internal Revenue Service.

    As these circumstances underscore the need for donors to take active measures to avoid being taken, BBB Wise Giving Alliance offers the following tips:

    • Watch out for cases of mistaken identity. Look at the name carefully. The group soliciting you may not be the one you have in mind.
    • Visit the charity’s website. Go directly to the charity’s website to help identify the organization, verify its physical address, and find out more about its activities, finances, and accomplishments. If the charity name implies or states it is a local affiliate of a larger organization, visit the website of the national office of that entity to confirm its affiliation.  
    • Be wary of excessive pressure to donate. Watch out for appeals that demand an on-the-spot gift decision. This might be a ruse to get you to contribute before you find out more about the group.
    • Is the charity registered with government agencies? About 40 of the 50 states in the U.S. require soliciting charities to register with a state government agency such as the office of the Attorney General or Secretary of State. In Canada, visit the charity registration page at the Canada Revenue Agency.
    • Visit Give.org.  Visit the charity reports on Give.org and at your BBB to verify if a charity meets the BBB Standards for Charity Accountability.

    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a video featuring Lisa Gurwitch, President and CEO of Delivering Good, a BBB Accredited Charity that provides donated essential items such as clothing, books, home goods and toys to serve needy children, families and individuals in all 50 states.
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB WGA interviews Dominic Kalms, the CEO and Co-Founder of B Generous, a platform that helps individuals donate to charitable organizations by enabling them to pay over time without any interest or fees. 

    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:

    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: 2021 Giving Figures and 2022 Cautions

    Wise Giving Wednesday: 2021 Giving Figures and 2022 Cautions

     

    The 2022 edition of the Giving USA Report was published on June 27, 2022, by the Giving USA Foundation and written by the Indiana University Lilly Family School of Philanthropy at IUPUI. Preliminary figures released last week by Giving USA showed that donations in 2021 totaled $484.85 billion which was 4% higher than the previous 2020 total of $466 billion but, after adjusting for inflation, contributions actually went down by 0.7%. Giving by individuals, including bequests, comprised 77% of the 2021 total followed by foundations at 19%, and corporations 4%. Wealthy donors represented a significant part of giving in 2021.  As reported in Barron’s, 10 donors gave away $15 billion last year.

    Here are some highlights from the Giving USA Report, which show some changes between 2020 and 2021 after adjusting for inflation:

    • Total giving by individuals remained relatively flat at a 0.2 percent increase.
    • Giving to public society benefit organizations grew 17.9 percent in 2021.
    • Giving to arts, culture and humanities grew 21.8 percent. The big increase for arts and culture represented a return to previous levels after a significant cutback that took place in 2020.
    • Giving to environmental and animal organizations increased 6.1 percent.

    The Chronicle of Philanthropy notes that an April 2002 an online survey completed by a Texas nonprofit consulting firm reports that 24 percent of U.S. donors who gave more than $20 to charity in the past year said they intend to give less in 2022 and that 63 percent will be more cautious in their 2021 giving. Some attribute these attitudes to worries about inflation and the economy. This contrasts with an alternative survey result in the UK which claims that 46 percent plan on increasing their charitable donations during 2022.

    It is difficult to predict with certainty how donations will fare in 2022. No matter the result, however, we still urge donors to check out charities before they donate and visit Give.org to verify if the organization meets the 20 BBB Standards for Charity Accountability.


    Video of the Week

    As part of our Building Trust Video series, we are pleased to revisit a video interview of Simon Davies, Executive Director, Teen Cancer America (a BBB Accredited Charity) which works to empower and improve the lives of young people with cancer. The organization reports that it creates youth-centered ecosystems that support young people with cancer, their families, and healthcare professionals. 
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, we close out Pride Month with an interview with Brandon Wolf, Press Secretary, Equality Florida (a BBB Accredited Charity.) Mr. Wolf is a nationally recognized LGBTQ civil rights advocate and a survivor of the 2016 shooting at the Pulse Nightclub. Equality Florida is the educational arm of a civil rights organization dedicated to ending discrimination based on sexual orientation and gender identity.


    Recent Reports

    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 – Alzheimer’s and Brain Awareness Month

    Wise Giving Wednesday – Alzheimer’s and Brain Awareness Month

     

    As June is designated as Alzheimer’s and Brain Awareness Month, we thought it would be helpful to dedicate this week’s Wise Giving Wednesday to bring more attention to Alzheimer’s and other diseases and conditions impacting the brain. While Alzheimer’s is often associated with older people, a June 20, 2022 article published by the Harvard Medical School points out that Alzheimer’s disease can develop in people under 65. As stated by Harvard’s Dr. Andrew E. Budson, “Of the more than 55 million people living with dementia worldwide, approximately 60% to 70% of them have Alzheimer’s disease. And of those 33 to 38.5 million people with Alzheimer’s disease, memory loss or other symptoms began before age 65 in 10% of them.”

    Also, keep in mind that there are a number of veterans and military service organizations that address brain related issues. Examples are veterans’ groups such as Wounded Warrior Project and Disabled American Veterans that address Post-Traumatic Stress Disorder (PTSD) which can cause the brain to “be stuck in danger mode” and impact thinking and memory.

    The National Institute of Aging which is affiliated with the National Institutes of Health has a website that identifies 11 Myths About Alzheimer’s Disease. See the article for the full list, but here are some selected excerpts:

    1. Alzheimer’s Disease and dementia are not the same thing.  Dementia refers to impaired memory thinking reasoning and behavior, Alzheimer’s is just one type of dementia.
    2. Just because a biological parent has/had Alzheimer’s does not necessarily mean their children will develop it. A person’s chance of developing Alzheimer’s, however, is higher if they have certain genetic mutations or variations that can be passed down from a parent.
    3. Forgetting things does not mean you have Alzheimer’s. Even though memory problems are typically one of the first signs of Alzheimer’s, not all memory problems mean a person has the disease. Some forgetfulness is a normal part of aging. Of course, see a physician if memory changes are of concern.

    For those seeking BBB Accredited Charities (i.e., organizations that meet the 20 BBB Standards for Charity Accountability) that address Alzheimer’s and/or Brain Awareness 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.

    Alzheimer’s Association

    American Brain Foundation

    Brain & Behavior Research Foundation / NARSAD

    BrightFocus Foundation

    Cure Alzheimer’s Fund

    Disabled American Veterans

    PTSD Foundation of America

    Wounded Warrior Project


    Video of the Week

    As part of the Building Trust Video Series, we interview Bridget Kesner, Director of Philanthropy, Ronald McDonald House Charities of Eastern Wisconsin (a BBB Accredited Charity). This organization works to be a home away from home for families seeking medical care for seriously ill or injured children at partner hospitals.
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, we chat with Lieutenant General James B. Laster, USMC (Ret), President and CEO, Marine Toys for Tots Foundation (a BBB Accredited Charity) about the work being done by Toys for Tots to raise funds to provide toys for needy children.


    Recent Reports

    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: Recognizing Different Donor Experiences

    Wise Giving Wednesday: Recognizing Different Donor Experiences

     

    One year ago, Juneteenth became a federal holiday commemorating the emancipation of enslaved African Americans in the U.S. With its roots on the day marking the end of slavery, this federal holiday invites us to be thoughtful about diversity, equity, and inclusion in our society and sector more broadly.

    Our recently released Give.org Special Donor Trust Report: Diversity, Equity and Inclusion (DEI) explored whether the donating public values DEI in charities. The report showed a complex picture, with some enthusiasm around DEI and more apathy than some would like to see. Still, the report is significant because it introduces the voice of a spectrum of everyday givers – who are the backbone of a healthy and pluralistic charitable sector.

    One of our survey questions asked participants whether they heard about a specific charity having a lack of diversity, equity, or inclusion during the past year. Overall, 22% of respondents said they had. However, younger respondents, people of color, LGBTQ+ participants, and people identifying as Muslim, Mormon, or Jewish were significantly more likely to say that they heard about a specific charity lacking DEI. Specifically, 40% of Gen Zers, 33% of African Americans, 65% of Pansexual participants, and 63% of Muslim participants reported hearing about lack of DEI at a specific charity.  Younger respondents, people of color, and LGBTQ+ participants are also more likely to report positive associations related to a charity having a diverse, equitable and inclusive board and staff; to place high importance in representation on a charity’s board and staff; and to say that demographic information reported by the charity would be “very useful. For a quick look, we invite you to see our infographics about how DEI influences individual giving and how different demographic groups differ in their DEI preferences.

    Recognizing different donor experiences is an important first step in reaching a diverse set of donors and speaking to their distinct preferences.


    Video of the Week

    As part of the Building Trust Video Series, we interview Laura Baerwolf, Chief Operating Officer of the Mona Foundation (a BBB Accredited Charity). This organization works to support grassroots educational initiatives that provide education to all children, increase opportunities for women and girls and emphasize service to the community.
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, we look back and explore some of our past episodes to find out what motivated some of our esteemed guests to embark on their philanthropic journey and the early experiences that made a mark and inspired them along the way.
  • Wise Giving Wednesday: How Do Donors Feel about DEI?

    Wise Giving Wednesday: How Do Donors Feel about DEI?

     

    On Monday, June 6th, BBB Wise Giving Alliance released the Give.org Special Donor Trust Report: Diversity, Equity and Inclusion (DEI). This report provides the results of a survey of 2,100 adults in the U.S. and more than 1,000 in Canada that explores whether the donating public values DEI in charities, whether DEI is a meaningful consideration in their giving process and identifies how demographic groups differ in their responses to DEI issues.

    As we start to hear reactions to the report, some express optimism in learning that most participants (54%) assume that having a diverse, equitable, and inclusive board and staff has a positive effect on how trustworthy the charity is. Others react to the findings with concern for the limited consideration given to diversity, equity, and inclusion in the donating process. Those interested in a quick read, might appreciate the coverage by The Chronicle of Philanthropy or The NonProfit Times.

    For those interested in insights by sector leaders, we invite you to read the contributed responses submitted by Franklin Guerrero (Vice President of Philanthropy , Major Gifts and Gift Planning at AARP Foundation), Jon Bergdoll (Associate Director of Data Partnerships and Lead Statistician for Giving USA), Afshan Paarlberg (Visiting Assistant Professor, Muslim Philanthropy Initiative at IU Lilly Family School of Philanthropy), Michael Martin (President and CEO, Evangelical Council for Financial Accountability) and Erwin de Leon (Chief Diversity Officer, School of Professional Studies and Lecturer in Discipline, Nonprofit Management Program at Columbia University in the City of New York).

    For example, Franklin Guerrero brings forth that philanthropy “should be that fiercely independent, innovative, and equalizing force that the government and private sector can’t forge in response to the constraints of democracy, taxation, or profits.” In turn, Jon Bergdoll reminds us that different demographic groups are likely to have different definitions for terms like “discrimination” or “lack of diversity, equity, and inclusion.” In his previous work, Jon found that “younger people and African Americans (along with single women) typically had more expansive definitions of racial justice causes.”

    We are impressed by the diversity and depth of these reactions and hope you are too.


    Video of the Week

    As part of our Building Trust Series, we interview Brandon Wolf, Press Secretary of Equality Florida (a BBB Accredited Charity). This organization works to end discrimination based on sexual orientation, gender identity and expression, sex, race/ethnicity, national origin, and socioeconomic status.
     


    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB Wise Giving Alliance interviews Elvia Castro, BBB WGA’s Associate Director, Charity Evaluation. She discusses the Give.org Special Donor Trust Report: Diversity, Equity, and Inclusion, which is described above.


    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:

    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.