Category: Wise Giving Wednesday

A helpful component of board planning activities involves a consideration of the organization’s performance and effectiveness in addressing its mission. As called for in BBB Standards 6 and 7, some type of “results reporting” should be shared in a written report provided to the charity’s governing board. In our view, a report to the governing board about the charity’s effectiveness would more likely include a candid analysis (about lessons learned as well as achievements) than a public document. The temptation to water down findings to make the charity appealing to media, funders and competitors is stronger when the report is for all eyes to see.

In a few days my good friend Kevin Washington, CEO of the YMCA USA and I will be delivering a luncheon address in New Orleans at the upcoming BoardSource Leadership Forum. This is the 15 ^th year that BoardSource has held this convening of nonprofit board leaders for a two-day conference on strengthening nonprofit leadership. I am looking forward to providing comments on governance related matters at this forum and am pleased to have another opportunity to share the BBB Wise Giving Alliance perspective on charity accountability.

On a separate note, as part of our Building Trust Video Series, we are pleased to provide the following video that features Eskinder Negash, Senior Vice President for Global Engagement, U.S. Committee for Refugees and Immigrants (a BBB Accredited Charity), a national refugee resettlement and immigration organization that specializes in providing services to foreign born populations of forced migrants in the United States.



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 Multiple Sclerosis Society
• Resist
• St. Baldrick’s Foundation

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ 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

For many charities, especially the nationally soliciting charities evaluated by BBB Wise Giving Alliance, the future may belong to the Internet, but direct mail fundraising is still king.  While online giving and social media made significant strides in raising charity dollars in the philanthropic marketplace, recent statistics show that online giving accounted for just 6.4% of overall fundraising revenue in 2013, excluding grants (Blackbaud’s Charitable Giving Report). 

I raise this to build on my previous blog about our donor privacy standard (BBB WGA Standard 18). The focus here is on direct mail fundraising and how charities acquire names and addresses of people to send mail.  The majority of the nationally soliciting charities evaluated by BBB WGA state that they do not rent, exchange or share their donor mailing lists with others. If so, this provision does not apply to them.  For the rest, BBB WGA Standard 18 asks charities to periodically provide a means (such as a check-off box) for both new and continuing direct mail donors to inform the charity that they do not want their name and address shared outside the organization.  This is what those in the privacy world call the “Opt Out” option.   

Paper is derived from trees, but mailing lists don’t grow on them, they have to be developed somewhere.  So, if a charity is seeking to acquire new donors by renting lists for one-time use from a variety of outside sources, those names and addresses do not belong to the charity until they become a donor.  As a result, unless the mail recipient makes a donation, the charity can’t promise them anything about what will happen to their information.  Hence, the reason for not requiring this “opt out” provision to be in every charity mailing sent.   But, at a minimum, every single current donor must be provided the opt-out option at least annually to meet Standard 18. Of course it’s preferable that this occur in all mailings to previous donors. 

It’s possible for charities to adopt more restrictive donor mailing list policies.  For brand new or smaller charities seeking to build a donor base, however, renting donor mailing lists may be their only way to get direct mail donors.  If donor mailing lists were not available, they would need to find alternatives (an animal welfare charity might use a list comprised of pet product purchasers) that could result in fewer donors than a mailing list of animal charity contributors of other groups. 

The bottom line is that mailing lists, when properly used, can serve as the oxygen that help charity fundraising work.  Without them, many charities would have difficulty starting, growing or raising funds.  BBB WGA strongly believes in the importance of donor privacy protections, and Standard 18 continues to address donor concerns without impacting the ability of charities to raise funds using the mail, which continues to be the main fundraising method for charities evaluated by BBB WGA. 

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

• Warm Blankets Children’s Foundation
• Elizabeth Glaser Pediatric AIDS Foundation
• American Partnership for Eosinophilic Disorders
• Compassionate Friends

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ 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

The National Cancer Institute of the U.S. Department of Health and Human Services estimates there will be 252,710 new cases of breast cancer in 2017 in the United States and that there were 3,327,552 women living with breast cancer in 2014. Clearly this devastating disease is a national concern that impacts a significant portion of the population. In view of these statistics, it is not surprising to learn that there are over 1,200 nonprofit organizations tax-exempt as charities in the U.S. with the words “breast cancer” as part of their name.  And, if you also consider, that many other cancer-focused charities address some aspect of this illness, the number of potential choices for those wishing to support breast cancer organizations during the month of October – Breast Cancer Awareness of Month  − could double that total. 

So, what’s a donor to do?  How can one make an informed choice about breast cancer charities among so many possible choices?  Well, it is highly unlikely that anyone will be solicited by all of these groups. For most of us, we generally consider just those charities that ask us for support. In that more limited universe, there are some basic steps one can take to help ensure that a donation is going to a trusted group. 

Don’t be confused by name similarity.  As noted above, many organizations have “breast cancer” as part of their name, so that fact alone does not reveal an intent to deceive. It just reflects the common practice of charities specifying their purpose in their titles. But you still need to be careful since the organization soliciting you may not necessarily be the one that you have in mind. 

Read the appeal carefully. The appeal you receive from a breast-cancer charity should clearly describe the nature of the activities you are being asked to support. Be wary of solicitations that seek to strike an emotional cord without identifying the charity’s main program services. 

What’s more important: research, treatment, or education? A breast-cancer charity may focus on one, all three, or other activities addressing breast cancer. It is a matter of personal choice as to which you might consider to be the most important to fund at this time.  There is no right or wrong on this decision. Just be sure you are aware of what activities your generosity will address. 

Verify the organization’s trustworthiness. One way of verifying the trustworthiness of a breast-cancer organization is to visit Give.org to find out 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 provide a video that features Mary Vivo, Executive Director, Hope Lives! The Lydia Dody Breast Cancer Support Center (a BBB Accredited Charity) which was evaluated by the Better Business Bureau serving Fort Collins, Colorado. This local organization supports women currently in breast cancer treatment who reside in Northern Colorado or are receiving cancer treatment in Northern Colorado.  The program is designed to manage the emotional and physical side effects throughout treatment at no cost to clients.

Highlighted Reports 

Continuing the theme of Breast Cancer Awareness Month, the following is a list of Accredited nationally soliciting charities whose primary focus is breast cancer. 

• Breast Cancer Prevention Partners
• Casting for Recovery
• Dr. Susan Love Research Foundation
• National Breast Cancer Coalition
• Sharsheret
• Susan G. Komen
• Young Survival Coalition

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ 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

Ariana Grande’s benefit concert on June 4th, One Love Manchester, helped raise over $3 million for the British Red Cross to benefit the victims of the terrorist bombing at the Manchester Arena in England. This concert received worldwide attention and featured a variety of famous performers including Katy Perry, Miley Cyrus, Black Eyed Peas, Pharrell, Coldplay and others. The event also demonstrates how quickly people of concern can come together to help those in need. 

We are also reminded that not all charity concerts are conducted in response to major tragedies. During the spring, summer and extending into early fall, some cities and towns draw crowds for other music festivals to benefit charity. They have become quite commonplace not only to raise funds for specified charities but to also increase awareness of causes. But before you go online to purchase concert tickets for an upcoming charity event, we offer the following advice to keep in mind: 

• Find out about the benefiting charity. While some concerts will help well-recognized organizations, others may assist groups that are less familiar to you. Visit the charity’s website to learn more about the programs and activities funds will support. 

• Be alert to ticket scalpers. If inflated ticket prices are being charged, don’t assume that will result in more money going to the charity. Scalpers recognize that some purchasers will not question the price if the event is organized for charity. 

• Merchandise sales may not help. You can’t assume, however, that all t-shirts and other items sold at a charity concert will benefit the named organization unless they are authorized to do so and specify that connection. 

• Verify charity trustworthiness by visiting Give.org to see if the organization meets the 20 BBB Standards for Charity Accountability . 

• Even if you are not able to attend, there may be other opportunities to help the featured organization(s) by either making online donations via their websites or participating in text-to-give campaigns that may take place during the concert. 

As part of our Building Trust Video series, we are pleased to provide a video of Elena Davis, Founder of I Am Waters Foundation (a BBB Accredited Charity) I Am Waters works to provide access to clean drinking water to the homeless population.

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:

• HOPE worldwide
• Ronald McDonald House Charities
• SIGN Fracture Care International 

Finally, remember to let us know by going to  https://www.give.org/ask-us-about-a-charity1/ 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

Last week, I joined 21 other organizational leaders in signing a letter that was sent to 1400 foundations. You may be aware of it. The aim of the letter was simple: we want foundations to invest 1% of their grant budgets in organizations that work to improve the performance of the non-profit sector. These organizations in part make up what is commonly referred to as the non-profit infrastructure. 

They support effective management, collection of data, measure performance, educate boards, enable efficient and professional fundraising, and in our case, educate charities and donors about what is required for trustworthiness. These organizations are vital to the success of non-profit work but are often neglected by funders when it comes to supporting their financial needs. Funders make an assumption that this work will somehow continue at a high level without their support. 

The sector needs more foundations to fund non-profit infrastructure. The challenge is that many foundations have set up funding guidelines that preclude them from supporting infrastructure organizations. We hope that where this is the case, that foundation executives and board members will consider amending those guidelines to enable them to support the important services non-profit infrastructure organizations deliver. 

If you are a charity and have a chance to speak with a foundation leader, mention the letter to them and ask them to consider setting aside funds for infrastructure. If you are a grant maker, I hope this will stimulate a dialogue in your foundation that leads to greater support for these organizations. 

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video featuring Scott Jackson, President & CEO of Global Impact (a BBB Accredited Charity) which works with approximately 450 public and private sector workplace giving campaigns to generate funding for more than 120 international charities. Global Impact also serves as administrator for the Combined Federal Campaign-Overseas 

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: 

• International Aid
• Save the Children Federation
• World Vision 

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ 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 we return from the July 4 ^th holiday weekend of celebrations of USA’s birthday, I am reminded not only of the freedoms all of us cherish but also of the wide diversity and liberty experienced by charitable organizations. The recognition of the unique inclination of Americans to create various associations and organizations was recognized about 185 years ago during a nine-month visit by a French civil servant, Alexis de Tocquevelle, who later published a book about this experience, Democracy in America which states that, “In the United States, as soon as several inhabitants have taken an opinion or idea they wish to promote in society, they seek each other out and unite together once they have made contact. From that moment, they are no longer isolated but have become a power seen from afar whose activities serve as an example and whose words are heeded.” 

I suspect that even de Tocqueville would be astonished that in 2016 there were 1,237,094 organizations tax-exempt as charities under section 501(c)(3) of the Internal Revenue Code (Source: 2016 IRS Data Book.)  And that total does not include all of the 350,000 houses of worship that are not required to apply for this tax-exempt status. No other country comes close to this volume of organizations.  But in fairness, that statistic also reflects the broad definition of charity as described in section 501(c)(3) and that fact that the vast majority of these organizations are very small. Only about 350,000 of the 501(c)(3) groups file either the IRS Form 990 or IRS Form 990-EZ. Charities (except houses of worship) with revenue $50,000 or more must complete one of these 990 forms. 

With this philanthropic freedom also comes the recognition of responsibility. In addition to sharing the same tax-exempt status, charities also share a recognition of the importance of transparency and trust. In part, the BBB Standards for Charity Accountability seek to help charities identify the minimum threshold behaviors (addressing governance, results reporting, finances and appeals) that donors expect them to follow.    

As part of our Building Trust Video series, we are pleased to provide a video that features Kevin Washington, President and CEO of the YMCA of the USA (a BBB Accredited Charity), the national office that assists local YMCAs in delivering and strengthening programs that engage people of all ages in improving their health and well-being through initiatives that include youth development, healthy living and social responsibility. 

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:

• Military Officers Association of America Scholarship Fund
• National Center for Missing & Exploited Children
• Ronald McDonald House Charities 

Finally, remember to let us know by going to  https://www.give.org/ask-us-about-a-charity1/ 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

In our continuing Wise Giving Wednesday series about the “Donate With Honor” press conference held at the Washington DC office of the Federal Trade Commission (FTC) along with state Attorneys General and state charity regulators, we take a closer look at another one of the referenced veterans charities that was the subject of government action: National Vietnam Veterans Foundation. This organization was accused of mismanagement and misspending funds.

National Vietnam Veterans Foundation (which also solicited under the name American Veteran Support Foundation) was a charity formed in Washington DC in 1992.  The organization operated primarily out of the Alexandria, Virginia home of its president and founder who also served as the chair of the charity’s three-member Board of Directors. In 2014, this organization raised $8,657,816 from nationwide campaigns using telemarketing and direct mail. Professional fundraising companies received $7,736,171 or 89% of the total amount received. The New York Attorney General’s office found that the amount that was left over for the Foundation was used inappropriately. For example, the president allegedly used funds for personal use such as expensive food and drink at top restaurants, visits to night clubs, parking for two private automobiles in downtown Washington, DC, foreign travel, home security services, and expense reimbursements for fictitious meetings.

In November 2016, then New York Attorney General Eric T. Schneiderman took action against the National Vietnam Veterans Foundation that resulted in the organization being permanently closed.  As part of the settlement, the former president paid $100,000 to the Attorney General, most of which was to be re-directed to charities actually helping veterans.  He also repaid his severance pay received from NVVF; will cooperate with ongoing investigations into others associated with NVVF and its fundraisers; and will also be subject to a permanent nationwide ban on access to charitable assets or decision-making.

Prior to the November 2016 state action, BBB WGA issued a report on National Vietnam Veterans Foundation which indicated that the organization was sent repeated written requests but did not disclose any of the requested information.

There are steps donors can take to avoid being taken by misleading appeals. One is to verify if the charity meets the 20 BBB Standards for Charity Accountability. See this link to a previous blog for a list of 26 veterans and military service charities that meet these standards.

Video of the Week

To give further insight into these veterans organization issues, this week’s video features an interview with Yael Fuchs, Co-Chief, Enforcement Section, Charities Bureau, New York State Office of the Attorney General.  She discusses New York’s actions against National Vietnam Veterans Foundation and one other entity and how her office seeks to protect New York donors from deceptive appeals.

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:

• Church World Service
• Friendship Force International
• Outreach Aid to the Americas

Finally, remember to let us know by going to 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