Category: Wise Giving Wednesday

Julia Louis-Dreyfus, Angelina Jolie and Wanda Sykes. These are just a few of the celebrities that have brought significant attention to the cause of breast cancer awareness.  As we continue our series of blogs for Breast Cancer Awareness Month, we wanted to recognize well-known personalities that have helped countless individuals recognize the importance of testing, treatment options, research and the need to support charities that address some aspect of this devastating disease. 

For donors, however, we also share the interest in making sure a celebrity’s appeal results in support for a trusted charity. Famous entertainers can reach us about the importance of a cause, but it’s up to us to make sure we put our donations to good use. While the amount of time celebrities have devoted to this cause reflects their generous spirit, in donation decisions, it is the charity that needs to gain your trust. 

To verify the trustworthiness of a breast-cancer organization, visit Give.org to find out if the charity meets the 20 BBB Standard for Charity Accountability. These standards address a variety of issues such as charity governance, finances, results reporting, appeal accuracy, transparency, and cause-related marketing disclosures.

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Video of the Week

As part of our Building Trust Video series, we are pleased to provide a video that features Lynda Houk, Executive Director, Vera Bradley Foundation for Breast Cancer (a BBB Accredited Charity evaluated by the Better Business Bureau serving Northern Indiana.)  This organization raises funds for the Vera Bradley Foundation for Breast Cancer Research Laboratories at the Indiana University Bren Simon Cancer Center in Indianapolis, Indiana. 

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Recent Reports 

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

• Community Health Charities
• National Kidney Foundation
• Prison Fellowship Ministries 

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 recent months, concerns were raised about the impact of U.S. tax law changes in 2018 since, among other things, the increase in the standard deduction to $12,000 per individual or $24,000 per couple, could reduce the incentive for some households to get a charitable deduction since fewer tax filers would itemize on their returns. While it is too early to tell if this fear will materialize, those claiming charitable deductions on their 2017 income taxes, should still keep in mind the following fundamentals. 

One can claim a charitable deduction for contributions made to organizations tax exempt as charities under section 501(c)(3) of the Internal Revenue Code and to veterans organizations tax-exempt under section 501(c)(19) of the Internal Revenue Code.  Contributions to other tax-exempt entities are generally not deductible as charitable gifts. To verify a group’s tax-exempt status visit the following IRS web page: https://www.irs.gov/charities-non-profits/exempt-organizations-select-check 

If the charity sends you something of value in response to your gift (for example, a stuffed animal, book, or concert tickets) only the portion of your donation above the fair market value of what you receive would be deductible. The charity will usually remind you about this in their acknowledgement or thank you message. 

Direct contributions to needy individuals, are generally not deductible as charitable gifts. While it is clear that one can’t deduct handouts made to the homeless, the deductibility of gifts made to crowdfunding postings can be a bit cloudy depending on the fact circumstances. 

If a donor contributes to a charitable project that has been posted to a crowdfunding site that is owned and managed by a 501(c)(3) charity, the donation generally will be deductible. If, however, one contributes to a charitable project on a crowdfunding site that is owned and managed by a for-profit company, one needs to be cautious since the deductibility can be impacted by whether the payment platform used by the site sends the gift directly to the specified charity. If the crowdfunding posting, however, is to help a specific named individual (for example to fund a dream overseas trip) there is little chance for donors to claim a deduction. 

Finally, the value of volunteer time or services to a charity is not deductible. Out of pocket expenses, such as gas and travel expenses directly related to the volunteer service will usually be deductible. 

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Video of the Week 

As part of our Building Trust Video Series, we are pleased to provide a video featuring Julie Throckmorton, Manager, Strategic Communications, HAS HAITI aka Hopital Albert Schweitzer Haiti (a BBB Accredited Charity) which operates a full-service hospital serving more than 350,000 people in Artibonite Valley in Haiti. HAS states that its key hospital-based services includes: trauma care, orthopedic surgery, high-risk maternity care, pediatrics, neonatal care and malnutrition rehabilitation, and internal medicine. 

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Recent Reports 

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

• Christopher and Dana Reeve Foundation
• Pencils of Promise
• Wildlife Rescue & Rehabilitation 

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

Would you parachute out of an airplane to raise money for charity? My guess is most of us would not. While the proposed action exceeds our risk comfort level, the question does get your attention because it sounds daring and different. On the other hand, taking chances for the greater good is what some charities do every day in order to carry out their work. Whether it’s providing essential needs to refugees in a war-torn area of the world or battling the spread of contagious diseases, some organizations are engaged in challenging efforts due to the very nature of their missions.

There is another type of risk, however, that is essential to the success of philanthropy, in my view.  It is the risk of attempting new ways to address the problems a charity is seeking to solve and the important role that trust can play in that journey. Charities, like people, can sometimes become averse to risk taking because it shakes their comfort level.  Organizations can fall into routines that have proven track records but may be reaching a plateau that cannot be exceeded with the current resources available – for example, the number of families helped by a food assistance program. New approaches to delivering the program and perhaps new ways of raising additional funds can lead to expansion possibilities but that can involve taking a chance that is not guaranteed.  To that end, here are some tips for donors and charities to consider in assessing charity risk taking.

Be risky, not reckless. Taking risks on new approaches to problems needs trust building. Organizations need to build confidence from supporters as well as board members by experimenting on a small level before devoting significant resources to an unproven methodology. Think small before you go big.

Diversify. As the old adage goes, don’t put all your eggs in one basket. Risk taking should enable a charity to take chances without placing the entire organization in jeopardy. For example, it doesn’t make sense for a charity to choose a new method of fundraising and devote all its development efforts in that one approach. An organization can attempt several new development activities on a trial basis and diversifytheir revenue streams as best as possible, not relying on any one method for all its needs.  The same goes with experimenting on the program services side of a charity.

Measure and Monitor.   A charity should incorporate an accurate way to measure the results of new efforts taking into account all the variables that can impact its success. Some activities have clear measures (such as dollars raised in fund raising) but others can be more challenging to quantify (like the success of an advocacy campaign).

Consider Collaboration. Charities don’t have to do everything on their own, they can seek out potential partners (sometimes other charities) that might help them achieve a desired result that could not be accomplished by a single group.  Both organizations can benefit but partners should be checked out to help verify their trustworthiness. Third party evaluations such as those completed by BBB WGA can help.

Be Transparent. If a charity is transparent with donors about the risks involved, it will encourage support and donor trust but will also help in overcoming concerns when things don’t go as well as planned.

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On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Angel Aloma, Executive Director, Food for the Poor, a BBB Accredited Charity, which conducts relief and development programs in the Caribbean (Haiti, Jamaica and Guyana), Central America (Nicaragua and Guatemala) and the United States. Assistance is provided in the form of cash and gifts-in-kind, to churches and charitable organizations operating in these areas of need, as well as conducting some of its own programs. 

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

Arlington, VA – With nearly two dozen dead and more than 1,200 homes destroyed, the floods in West Virginia are among the most deadly ever to hit the United States. As always with a natural disaster, generous individuals are looking for ways to help the injured and those who have lost their homes. BBB Wise Giving Alliance, however, advises donors to be wary of questionable solicitations and to avoid donating to poorly managed relief efforts. 

“Many people want to help in any way they can,” said Frank Cilona, president and CEO of BBB Serving Canton Region and Greater West Virginia. “Unfortunately, scam artists also strike during these tragedies. Please check with BBB before donating to causes that claim they are helping the victims of West Virginia.”

“Everyone would like their donations to go where they can do the most good,” said H. Art Taylor, president and CEO of BBB Wise Giving Alliance (BBB WGA). “To make sure your gifts go to those who need them most, donors need to follow some key rules about supporting disaster relief.”

BBB WGA suggests that before you choose a charity to give to, read its Disaster Relief Donations tips (below) and remember to check out the charity on Give.org. BBB WGA has a list of nationally soliciting charities that have been accredited by BBB WGA (i.e., meet all 20 BBB Standard for Charity Accountability), and indicate that they are collecting contributions to assist West Virginia relief efforts. The list, which will be updated as more charities join the efforts, is available at bbb.org/WVfloods. BBB Wise Giving Alliance offers donors these tips for disaster relief giving:

Be cautious when giving online. Be cautious about spam messages and emails that claim to link to a relief organization. If you want to give to a charity involved in relief efforts, go directly to the charity’s website.

Understand crowdfunding. Keep in mind that some crowdfunding sites do very little vetting of individuals who decide to post for assistance after a disaster, and it is often difficult for donors to verify trustworthiness of crowdfunding requests for support. In contrast, some of the crowdfunding sites run by charitable organizations, such as GlobalGiving.org, have a defined verification procedure.

Rely on expert opinion when it comes to evaluating a charity. Be cautious when relying on third-party recommendations such as bloggers or other websites, as they may not have fully researched the relief organizations they list. The public can go to Give.org to research relief organizations and other charities to verify that they are accredited by the BBB which means they meet the 20 BBB Standards for Charity Accountability.

Be wary of claims that 100 percent of donations will assist relief victims. Despite what an organization might claim, charities have fund raising and administrative costs. Even a credit card donation will involve, at a minimum, a processing fee. If a charity claims 100 percent of collected funds will be assisting disaster victims, the truth is that the organization is still probably incurring fund raising and administrative expenses. It may use some of its other funds to pay these costs, but the expenses will still be incurred.

Find out if the charity has an on-the-ground presence in the impacted areas. Unless the charity already has staff in the affected areas, it may be difficult to bring in new aid workers to provide assistance quickly. See if the charity’s website clearly describes what the charity can do to address immediate needs.

Find out if the charity is providing direct aid or raising money for other groups. Some charities may be raising money to pass along to relief organizations. If so, you may want to consider “avoiding the middleman” and giving directly to those that have a presence in the region. Or, at a minimum, check out the ultimate recipients of these donations to see whether they are equipped to provide aid effectively.

Gifts of clothing, food or other in-kind donations. In-kind drives for food and clothing, while well intentioned, may not necessarily be the quickest way to help those in need – unless the organization has the staff and infrastructure to distribute such aid properly. Ask the charity about its transportation and distribution plans. Be wary of those who are not experienced in disaster relief assistance.

West Virginia Secretary of State Natalie E. Tennant has issued a similar warning about emergency giving and asks anyone who comes across a potentially fraudulent charity to contact the Investigations Office at 304-558-6000.

ABOUT BBB WGA:
BBB Wise Giving Alliance (BBB WGA) 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 the BBB WGA and local charity reports are produced by local Better Business Bureaus – all reports are available at Give.org.

ABOUT BBB:
For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2015, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation.

Today, we are told the Megamillions Jackpot in the U.S. has risen to a half-billion dollars. Who doesn’t love the idea of winning a mountain of money for a ticket that costs a couple of bucks?  The odds of course are low – about one in 250 million.  But we also know you are more likely to be struck by lightning (about 1 in a million odds) than win the big booty. 

But what if someone were to tell you that you can skip the low lottery odds and get an unrestricted U.S. government “grant” ranging from $5,000 to $15,000?  All you have to do is make a payment of a few hundred dollars and the money is yours!  Yes, this is a scam offer, but I am saddened to report people across the U.S. are falling for this proposal which is made over the phone by telemarketing con artists.  People are asked to send payments ranging from $300 to $900 and to accomplish this transfer in an odd way. While some are asked to provide their credit card or banking information, the con artists know that many are reluctant to share this information. Instead they ask call recipients to buy a gift card in the requested amount such as an iTunes, Apple, Walmart gift card or a Green Dot Debit Card and then call back the scammer with the codes for the purchased cards. 

In the past few weeks, the BBB Wise Giving Alliance has received a significant volume of calls from people who received such scam offers.  About half of them recognize the offer is too good to be true while the others tell us they have already done what the scammer has asked.  We urge them to immediately contact their banks or the purchased gift card sources and inform them, to contact their state’s office of the Attorney General, and to report the incident on BBB Scam Tracker. 

The sad irony about government grants is that in many communities, charities are struggling due to cutbacks in state and local government grants that in some cases provide the majority of the charity’s revenues to carry out their missions.  While these charities struggle to seek other sources of revenue to continue their work, con artists are fooling people into believing that government grants are being given to anyone who wants them.    

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On a separate note, as part of our Building Trust Video Series we are pleased to provide a video featuring  Dr. Michael Jacobsen, Executive Director of Center for Science in the Public Interest, (a BBB Accredited Charity). The Center seeks to conduct research and advocacy programs in health and nutrition, and to provide consumers with current, useful information about their health and well-being. 

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

• Last Chance for Animals
• National Trust for Historic Preservation in the United States
• Near East 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

As the school year ends and summer vacation begins for youth across America, teenagers will engage in a variety of activities ranging from summer jobs to camps.  One additional option for parents to consider is to encourage them to engage in philanthropy-related activities.  It is never too early to educate youth about the important role that charity should have in their lives.  There are a variety of options, including but not limited to: 

Volunteering – Some organizations have volunteering opportunities for youth. To identify options, there are online volunteer match sites that could help. Or, one might contact the local United Way to see if they have recommendations. 

Philanthropy Camps – Some areas have specialty youth camps that focus on philanthropy through instruction, field trips, and games. 

Volunteer Vacations – In an earlier blog, we addressed the issue of volunteer vacations as a means of adults to engage in philanthropy. In some instances, families may be able to bring their children as well to participate as a group. 

Giving Kids a Charity Budget – Under appropriate supervision, parents might encourage philanthropy skills by proving children with a charity budget, asking them to conduct research and identify potential charities to support, and help them follow through by distributing those funds.   

No matter what options that are considered for youth engagement, we urge parents to take the time to check out the charity on Give.org.  Verify the charity’s  trustworthiness and see if they meet the 20 holistic BBB Charity Standards. 

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On a related note, as part of our Building Trust Video Series we are pleased to provide a video featuring Jaime Berman Matyas, President and Chief Executive Officer, Student Conservation Association (a BBB Accredited Charity.) This organization has been involved in building the next generation of conservation leaders and encouraging environmental stewardship since 1957. Among other things, it provides college and high school-aged members with hands-on conservation service opportunities in several fields. 

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

• Coptic Orphans Support Association
• Islamic Relief USA
• National Alliance to End Homelessness 

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

Fleeing an area of conflict with just the clothes on your back and what you can carry is a nightmare none of us ever want to experience.  So when media attention is drawn to refugees from Syria pouring into other countries, it is not surprising this has prompted many to make donations to assist those in need.  To help contributors identify relief organizations that are addressing various health, nutrition and related needs of refuges, BBB Wise Giving Alliance has complied a list of such relief organizations that meet all 20 of the BBB Standards for Charity Accountability. We urge donors to exercise caution in responding to online giving requests or solicitations from unfamiliar organizations.  For additional advice, see the press release we sent out yesterday. Sadly, this refugee problem did not emerge overnight but has been building over a number of years.  In turn, the needs won’t disappear when the stories are no longer in the headlines.  So keep in mind there will be continuing opportunities to provide help in the months to come. On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Jennifer Windsor, CEO of Women to Women International (a BBB Accredited Charity).  This organization was founded twenty years to help the most marginalized of women in conflict affected countries to rebuild their lives.  The heart of their program is a 12-month training program that helps provide basic skills such as economic, literacy and knowledge of health and basic rights.

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