Category: Wise Giving Wednesday

As a symbol of achievement in the movie industry and perhaps worldwide, the Oscars are probably one of the most recognized awards given out today. While there is no equivalent in philanthropy, it is interesting to note that one connection to charity in this year’s awards ceremony is the appearance of the blue ribbon, representing support for the American Civil Liberties Union, on the dresses and lapels of many of the celebrities attending the event.  That subtle but visible, cloth attachment quickly communicates with the public about a cause without saying a word. 

Over the years, different color ribbons have become a staple of charity messaging. It is hard to know when it all got started, but in my younger years, I remember Tony Orlando’s 1973 pop hit, “Tie a Yellow Ribbon Round the Old Oak Tree” which many interpreted as a symbol for a loved one who would be welcomed home after a long absence, especially the military. Soon the yellow ribbon became a universal symbol of support for active service members and their families and today, is incorporated for use by many veterans and military service organizations. 

And of course, most of us have seen the pink ribbon, an awareness symbol of the breast cancer cause, that is used by many charities seeking to find a cure or assist those afflicted with this disease.  And, then there is the red ribbon representing HIV/AIDS awareness. Other colors have filled out this ribbon rainbow to bring public attention to various campaigns and I am sure additional ones will be created over time. 

Ribbon awareness can certainly help in charity outreach, but the public needs to be cautious when such symbols appear on retail products without any disclosure indicating how their purchase will benefit the cause. See BBB Charity Standard 19 for information on the recommended disclosures for cause-related marketing. 

Whatever charity ribbon you decide to wear proudly, remember to also take the time to verify if the sponsoring organization also meets the BBB Standards for Charity Accountability. 

On a separate note, as part of our Building Trust Video series, we are pleased to provide a video of Fran Solomon, Founder and President of HealGrief (a BBB Accredited Charity) which offers virtual, online support for bereaved individuals. 

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: 

• Myositis Association
• National Fallen Firefighters Association
• USA Cares 

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 one of the referenced veterans charities that was misleading donors: Healing American Heroes.

Healing American Heroes (which also solicited under the name Help Our Wounded) was a charity located in Round Rock, Texas.  In 2015, this organization raised $2,669,710 by distributing 5 million direct mail appeals nationwide. The office of the Attorney General in Michigan noted that these mailings stated the “urgent” need for phone cards for wounded service members deployed in the middle east and also claimed that all 50,000 soldiers stationed in that region wanted a phone card. Healing American Heroes, however, spent just $5,030 for this purpose and purchased only 1,000 cards. None of these cards were distributed to troops in 2015, they were sent to troops in 2016.

In November 2017, Michigan Attorney General Bill Schuette announced that Healing American Heroes dba Help Our Wounded reached a settlement that resulted in the dissolution of the charity. The settlement was the result of an investigation by the Attorney General that found the charity engaged in deceptive solicitation and the diversion of funds raised to purposes other than the intent stated in appeals. The Office of the Attorney General stated that Under the settlement, Healing American Heroes dissolved and will pay any remaining funds to [two veterans charities specified by the state] …Healing American Heroes’ founder will pay $20,000 and agree never to serve as a charitable fiduciary again.

Prior to the November 2017 state action, BBB WGA issued a report on Healing American Heroes indicating that it sent repeated written requests to Healing American Heroes but the organization 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 William Bloomfield, Assistant Attorney General, Corporate Oversight Division, Office of the Michigan Attorney General, Lansing, Michigan.  He discusses the multi-state action against Healing American Heroes and how his office seeks to protect Illinois 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:

• Children’s Inn at NIH
• Guiding Eyes for the Blind
• National Center for Healthy Housing 

Finally, remember to let us know by going to http://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

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 another look at the announced crackdown on questionable appeals claiming to help veterans or active duty service members.

The list of 100 enforcement actions that was distributed with the FTC press conference announcement includes a variety of cases involving the FTC and various state attorney general offices. Among other things, the action descriptions identify veterans organization deficiencies, including, among other things:

• Appeals that misled the public about providing assistance to veterans or service members
• Robocalls misrepresenting that the message is an appeal from a charity
• Cause-related marketing promotions that sold items with the false promise of providing assistance to service members
• For-profit corporation holding itself out as a charity
• Misleading sweepstakes claims
• Failure to register as a charity with the state government despite repeated requests by the state
• Filing misleading reports to state government agencies

While allegations similar to these have taken place before, the scope of this press conference serves as a warning to others who consider soliciting for this popular cause: the authorities are watching and will take measures to help protect the public from misleading appeals and other misconduct by solicitors raising funds for veterans or service members.

There are steps you can take to help avoid misleading appeals and identify trustworthy veterans organizations that meet 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 Lois Greisman, Associate Director for the Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission. She discusses how her office seeks to protect 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:

• Clinton Foundation
• Homes for Our Troops
• Sandy Hook Promise Foundation

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

On a daily basis, most of us receive charitable appeals of some kind but an increasingly popular one is the request to round up your bill at the supermarket or other store register and agree to donate your change to a specified charity.  A 2015 study completed by Engage for Good (formerly Cause Marketing Forum) shows that checkout charity giving generated $390 million in 2014 by a group of 77 charities.  In turn, a 2015 online study conducted by Catalist showed that 66% of respondents donated at the register within the previous two months.  

But the donation option is expanding far beyond the grocery store. Round-It-Up America offers a platform that enables participating restaurants to offer customers to round up their bill for charity.  As reported in Yahoo! Finance on April 1 ^st, the taxi app Lyft took out a full-page ad in the New York Times to announce its Round Up & Donate program that will enable its customers to contribute to various causes when they pay for their ride.

You are likely to see even more of this change for charities option in the future. In part, this is being fueled by the recent release of various apps that are enabling almost any retailer to offer round up charity giving options when consumers pay for their items or services. Other apps let individuals automatically round up their credit card purchase and contribute the amount to their selected charity without requiring the retailer to be engaged at all.

As the round-up charity options expand, we offer the following tips to help consumers/donors decide whether to participate.

1. Charity round-up options do not operate in the same way. For example, some of the newer apps only enable selected charities to receive the donation. In other instances, the app may only release funds to a charity when  purchases result in a gift that reaches a certain level, such as $5. And, the app may charge fees for the donation transaction as well.
2. Remember that charities still need your direct support through other means, this is just one option. In turn, such transactions often don’t result in the charity being able to follow-up with contributors or develop a longer term relationship. For that, they would need your email, phone or address.  On the other hand, some donors appreciate the anonymity of making a gift by contributing their change.
3. Don’t assume the retailer or the app has vetted the designated charities.  Once again, it is ultimately up to the donor to take the time to verify the trustworthiness of the selected charity.  Visit Give.org to find out if the organization meets the 20 BBB Standards for Charity Accountability.
4. Be wary of excessive pressure to donate, even at the checkout register. Don’t feel obligated to say yes. If interested, you can always donate on your next visit, after you had a chance to find out more.

As part of our Building Trust Video series, we are pleased to provide a video of Rob Butcher, CEO of Swim Across America (a BBB Accredited Charity) which holds open water, pool, and virtual swims across the US in order to raise money to support cancer research, prevention and treatment. 

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 our website search engine. We will do our best to produce one.  

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

In partnership with the Stanford Social Innovation Review (SSIR), the BBB Wise Giving Alliance is producing an article series that calls on the nonprofit sector, and others engaged in philanthropy, to embody a new and pioneering spirit of collaboration. Grounded in trust, these partnerships reach broader audiences, share the risk involved in experimentation and accomplish more than any single organization can do alone. 

Today, May 17 ^th, my entry in the Advancing Collaboration article series, titled “Hacking Collaboration,” is live on SSIR’s website and accessible via the following link:  http://www.give.org/advancingcollaboration/art-taylor/  

After reading this piece, we invite you (charities, businesses or donors) to join the movement by entering your name on the Advancing Collaboration pledge page which demonstrates a commitment to finding more partners with complementary assets to execute a shared vision. Charities, business or other entities engaged in social good, can pledge to operate with a collaborative spirit that fosters joint action to deliver greater value.  Donors can pledge to support collaborative organizations. After signing, you can download a pledge icon to place on your website or social media to encourage others to join as well. 

Additionally, as part of our Building Trust Video series, we are pleased to provide a video of Robin Smalley, Co-Founder and Director of mothers2mothers (a BBB Accredited Charity) which offers support to HIV-positive pregnant women and new mothers in sub-Saharan Africa. 

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: 

• Scholarship America
• TeletonUSA Foundation
• The Trust for Public Land 

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

We give for the benefit of others for many reasons. Among the most powerful is faith. This is certainly true of Islam. According to Islamic Relief USA, (a BBB Accredited Charity), Islam has the concept of zakat as a fundamental tenant. Zakat is Arabic for purification, growth and blessings.  It requires Muslims to donate a percentage of their wealth to those in need: http://irusa.org/zakat/. Yesterday, Muslims around the world began Ramadan, which is a time for fasting and reflection.  The mandatory act of giving to others will be on the minds of many during this period.  

In general, the greater one’s faith the more they give to charity. According to a 2013 study featured in The Chronicle of Philanthropy , people who regularly attend religious services give at a significantly higher rate than those who do not. 

While religion may influence the decision to give, there are certainly many choices for where and how to give. Yet relatively few people, religious or not, actually give with discernment or investigate the charities they support. It may be that the act of giving is enough to satisfy the donor. Whether or not the gift will fully address promised goals may be less important. Ultimately, donors trust that charities will give best efforts to accomplish their aims. The work we do helps to assure that the trust people have in charities is not misplaced. Charities should be purposeful to uphold trust by: 

• Having functioning and independent governing boards,
• Managing and reporting their finances,
• Distributing accurate fundraising appeals and other information, and
• Assessing their performance. 

When charities do this, they enable donors to give with confidence regardless of whether they are driven by religion.  

Video of the Week 

As part of our Building Trust Video Series, we are pleased to provide a video featuring Paul Miles, President & CEO, We Raise Foundation (a BBB Accredited Charity) which provides grants in the Lutheran community that support the initial development of sustainable health and human care ministries. The organization reports having a special interest in nurturing new health and human care ministries developed by local congregations and new faith-based organizations. 

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:

• Coast Guard Foundation
• Friends of the Earth
• Leukemia & Lymphoma Society 

Finally, remember to let us know by going to  https://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

One of the challenges for charities that use direct mail fundraising is to get the recipient to open the envelope. Whether a potential donor gets a large volume of direct mail or just a trickle, a charity has no chance of receiving a donation if the appeal is ignored. One attention-getting technique that has been around for a number of years is attaching a coin to the fundraising letter that can be seen through a window on the envelope. It catches donors’ eyes and makes them wonder: why are they doing this?  These mailings often explain how even small amounts of money – just a few cents per day – can make a difference in achieving the organization’s stated mission and ask donors to consider adding the coin’s face value to the amount they decide to donate.

Donors tell us they are put off by the use of coins in fundraising letters and complain about this practice as a perceived waste of the charity’s money. Donors recognize that charities usually send out a large volume of these types of appeals. Attaching a coin can add up to significant sums of money. While it could be argued that a penny or nickel has low value, the letter may claim otherwise as it seeks to encourage the recipient to make a gift.

Recently, we are seeing direct mail appeals attaching coins with larger values, such as a half-dollar. Charities that do this are taking a significant risk since donors can easily imagine 50 cents adding up to dollars very quickly. In addition, such larger coin amounts have the potential to place pressure on donors to return the money, especially if the direct mail appeal adds the coin’s value to the suggested donation levels.

Of course, as with all fundraising, we encourage donors to look beyond the marketing approach and find out more about the charity before making a gift. Visit Give.org to see if the charity meets the 20 BBB Charity Standards for Charity Accountability .

While some charities may justify this practice based on the appeal’s response rate, we hope they consider coin attachments very carefully, as they might just as easily raise eyebrows as well as funds and could result in losing more donors than they gain.

Video of the Week  

As part of our Building Trust Video Series, we are pleased to provide a video that features an interview with Jaime Berman Matyas, President and Chief Executive Officer ,   Student Conservation Association , (a  BBB Accredited Charity).  They have been involved in building the next generation of conservation leaders and encouraging environmental stewardship since 1957.    

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 Lung Association
• National Audubon Society
• Patient Advocate Foundation  

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