On Monday, October 5th, I was part of a panel discussion about emerging trends in disaster fundraising at the Washington DC annual meeting of the National Association of State Charity Officials (NASCO) which is held in conjunction with the National Association of Attorneys General. This topic is on our minds this week in the wake of the horrific flooding that occurred in South Carolina. I began my presentation discussing how mobile text to give campaigns (for example, the Mobile Giving Foundation) which began as a means to support disaster relief efforts, have since become integrated as part of general giving campaigns. However, the online environment for disaster giving has further evolved into various alternative platforms that enable charities to quickly organize fundraising campaigns on new online payment platforms. Some of these platforms such as the crowdfunding activities conducted by the GlobalGiving Foundation (a BBB Accredited Charity) carefully vet all of the projects funded through their website, while others do not. In addition, some of the new giving platforms are run by start-up, for-profit companies that may be harder to check out due to the lack of a track record. In turn, lesser known payment platforms, especially in the disaster giving environment, create new challenges for both government regulators and monitoring groups in terms of keeping track of the latest giving activities and calling out problem practices.
My fellow panelist at the NASCO conference was Bob Ottenhoff, President and CEO of the Center for Disaster Philanthropy which seeks to increase the effectiveness of contributions given to disasters. Among other things, Bob pointed out how media coverage drives disaster giving, which is mostly reactive to these events. He also talked about the importance of disaster relief charities providing a financial and activity report after a disaster and monitoring restricted funds that are established for specific disasters.
As part of our Building Trust Video Series we are pleased to provide a video that features Mari Kuraishi, one of the founders and the current President of GlobalGiving. Under her leadership, the organization has raised over $188 million since 2002 from over 475,000 donors and funded 12,500 projects around the world.
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 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
With total revenues of about $3 billion, more than 450 chapters in all 50 states, over 25,000 paid staff members, 400,000 volunteers and responding to nearly 70,000 disasters large and small each year, the American Red Cross is one of the largest American charities in existence and one of the most recognized charity brands. By any measure, the management and oversight of such a huge institution can appear daunting. To strengthen its ability to meet this challenge, the Red Cross embarked on a major reorganization in recent years that changed its structure and relationship with local affiliates.
Prior to 2008, the Red Cross had as many as 3,500 chapters each with its own board of directors, accounting systems, bank accounts, email platforms and purchasing. The local executive reported to his/her own local board and there was little resource sharing among chapters as each raised funds to meet their own budgets. Five years later, after a major consolidation that was completed in 2013, the Red Cross became a single managed institution with just one board of directors at the national level, chapter consolidation, centralization of IT functions, marketing, finances and back office operations and a change in focus at the local level which was able to devote more attention to the communities being served. The changes implemented provided more flexibility in addressing local needs as a result of this greater coordination, among other things.
With this background, we are pleased to provide the following video of an interview with Gail McGovern, President & CEO of the American Red Cross. Ms. McGovern helped lead the reorganization described above and continues to oversee one of America’s largest charities.
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 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
On June 12th, the BBB Wise Giving Alliance will be hosting a charity conference in Washington DC. While we hold a conference each year for BBB Accredited Charities that participate in our charity seal program, this gathering is special. Another organization, the International Committee of Fundraising Organizations (ICFO) is partnering with us to produce this event. ICFO, is an international association of national charity monitoring organizations. Their members are standards-based charity reporting organizations that report on charities in other countries as we do in the United States. Each year an ICFO member hosts their annual meeting in their home country, this time it is our turn.
As a result we are opening up the conference to a wider charity audience and inviting any organization with an interest in charity accountability issues to register for this one-day event. The agenda will include a discussion of a variety of topics related to trust issues:
Donor Trust in Charity Data Security & Privacy
Cultural Differences that Influence Trust in Charities & Fundraising Strategies
Gaining Donor Trust of New Generations
Communicating Charity Value and Inspiring Trust
In addition, our keynote luncheon speaker, Carrie Martin Munk, the Chief Communications & Marketing Officer, ALS Association, will talk about the Ice Bucket Challenge.
We hope charity executives and others interested in the mentioned topics will be able to join us for this gathering. It will be a wonderful opportunity to not only learn from thought leaders on these subjects but also to meet monitoring groups from around the world who face many of the same accountability challenges as the BBB Wise Giving Alliance.
With today’s technology, global issues are impacting charitable organizations with greater frequency. Whether it be tragedies such as the devastating earthquake in Nepal or internet privacy and security threats, charitable organizations are recognizing they are part of an ever expanding community that seeks to maintain donor trust and strengthen accountability.
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:
With Artic air dipping into Canada and the United States this first week
of 2018, many areas are experiencing sub-zero temperatures. The frigid
weather also reminds us of the hardships experienced by the homeless
seeking relief from the cold. Some shelters are likely to fill to
capacity during such dangerous drops in temperature, especially in major
cities. For those seeking to help the homeless during this difficult
weather season, we offer the following advice and suggestions.
Supporting Shelters: Homeless shelters need
support, especially this time of year, and would greatly appreciate
being remembered in your contribution activities. Most cities have
a number shelters that provide assistance, but need continuing support
as other charities. If a BBB charity report is not available, BBB WGA
recommends checking out the organization’s website for additional
details about its services and needs.
Financial Information: If you are seeking out
financial information on a homeless shelter, transparent organizations
will include website access to their latest financial statements. Even
small organizations should have some type of available financial
statements. Except for those shelters run by houses of worship,
charities that bring in $50,000 or more are required to annually
complete the IRS Form 990 EZ or the full IRS Form 990 if their gross
receipts exceed $200,000.
In-Kind Donations: It is best to check with a
shelter before making an in-kind donation of food, hygiene products,
blankets, clothing or coats. This will help you identify what gifts
would be most appreciated. Keep in mind that some shelters deal with a
large volume of homeless individuals. Also, travel size soaps, shampoos
and similar items are usually very helpful for distribution.
Volunteering: It is quite common for the volume of
volunteers to exceed paid staff at many shelters. Those interested in
helping out, however, should be willing to undergo a background check as
organizations seek to ensure the safety of their clients. Also, some
homeless organizations conduct outreach to those homeless that are
reluctant to seek shelter in order to provide blankets, food or other
necessities directly to where they are located.
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a
video that features Natasha Museles, Executive Director, Children’s Cancer
Foundation (a BBB
Accredited Charity). which supports facilities treating children
with cancer and researchers and programs designed to assist children or
families facing a diagnosis of cancer in Maryland, D.C., and Northern
Virginia.
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 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
A quote attributed to the late, great American actor, Spencer Tracy, provides a reminder of the importance of managing finances: “There were times my pants were so thin I could sit on a dime and tell you if it was heads or tails.” During the last quarter of the year, many charities are seeking to finalize their budgets for next year.
In terms of charity financial reporting, the public’s attention is usually focused on either the annual financial form filed with Internal Revenue Service (the IRS Form 990) and/or the charity’s audited financial statements which is prepared by an outside CPA firm. These items are looking backwards in time by showing users how the charity spent its funds in the past fiscal year. They are historical documents, not future forecasts.
A charity’s budget, however, shows how the charity plans to spend its funds in the current or coming year. Depending on the circumstances, it might reference new services, programs or priorities that won’t be found elsewhere. When properly prepared and produced, a budget can provide a valuable planning tool that is essential to good financial stewardship.
One of the BBB Standards for Charity Accountability (Standard 14) calls for charities to have a board-approved budget that includes certain information. It should identify the projected total amounts to be spent on program activities, fund raising and administration. Such an expense breakdown will help the board gain a better understanding of how the charity’s resources will be used. While a table of budgeted expenses in natural categories such as salaries, postage, travel, etc. provides essential detail, the recommended allocation totals helps complete the financial picture.
In addition, the budget should be periodically reviewed and updated to reflect any changes in circumstances that has come to the charity’s attention. Good budgeting practices help a charity track its finances and potentially avoid financial shortfalls that could cause it to worry where the next dime will come from.
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a video featuring Rachel Laser, President and CEO of Americans United for Separation of Church and State (a BBB Accredited Charity), an organization that works to preserve the separation of church and state through litigation, advocacy and education efforts. This includes initiating and supporting lawsuits, providing legal counsel, as well as producing a monthly magazine, issue papers and legislative alerts.
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.
H. Art Taylor, President & CEO
BBB Wise Giving Alliance
The Association of Fraud Examiners released a report summarizing an analysis of 2,504 cases of fraud taking place from January 2018 to September 2019. While this is not intended to capture all fraud that takes place, it provides a detailed analysis of the costs and methods of occupational fraud as investigated by certified fraud examiners from around the world. Of this total, there were 191 cases that involved nonprofit organizations. Here are some highlights of the nonprofit data:
The median loss was $75,000 with the average loss being $639,000
74% of the cases involved either executives or managers/supervisors
The top three types of fraud experienced at nonprofits were: corruption, billing and expense reimbursements.
40% of these frauds were detected by tips or complaints, 17% were found by internal audits
As stated in the study, “Nonprofit organizations can be more susceptible to fraud due to having fewer resources available to help prevent and recover from a fraud loss.” Among other things, the report concludes that a lack of internal controls and less oversight contributed to fraud at nonprofits.
In part, the lessons learned from this data is that while no organization can be immune to the possibility of criminal behavior, steps can be taken to help reduce its occurrence or help detect it quickly to avoid significant loss. Actions such as fraud education, hotlines and/or whistleblower complaint policies, and data monitoring can help.
BBB Wise Giving Alliance believes these fraud cases also point to the importance of having audited financial statements, especially when gross revenue exceeds $1 million, as called for by BBB Charity Standard #11. These statements are more reliable and complete than an IRS Form 990 and will usually include a management letter for the board of directors advising them of any recommended changes to strengthen practices. Finances alone, however, are not the only issue that needs to be verified as demonstrated by the broad nature of the BBB Standards for Charity Accountability which also address charity governance, results reporting and accurate and transparent communications.
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a video interview with Mabel Valdivia, Executive Director of Fonkoze USA, a BBB Accredited Charity that provides microfinance loans, skills training, and health products and services to the poor in Haiti. The organization reports that it serves as Haiti’s largest microfinance institution, with 96% of its borrowers being women starting or expanding small businesses.
Recent Reports
We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:
Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.
H. Art Taylor, President & CEO
BBB Wise Giving Alliance
Last week, an article on
InsideHigherEd.com got my attention. It told the tale of a frugal staff member at the University of New Hampshire
library who passed away in 2015 and left a sizable bequest worth $4 million to the University. He was also a 1963
graduate of the school. The University
announced it would spend $2.5 million on a career center, $100,000 for the library, and $1 million for a video
scoreboard for its football stadium. The $100,000 library expenditure was allegedly the only specified restriction
on the gift. Although the librarian was reported to be a University of New Hampshire football fan during the
last year of his life, the school received criticism of the decision to fund the video scoreboard. Although almost
all of the gift was unrestricted, some complained the planned scoreboard expenditure did not show respect for the
donor and his decades of devotion to the school. The school disagrees with this assessment and claims they
received positive feedback on the gift.
While I am not making a judgment on this circumstance, the story does provide a valuable lesson for those making planned
gifts. While charities are probably best served by unrestricted gifts, that can be directed to where they deem
most needed, donors would be wise to consider specifying some direction for the potential use of the contribution,
if they want their legacy to help achieve a certain type of result. If so, it would be helpful to have a discussion
with the recipient organization before finalizing the bequest language, so that when the time comes, the charity
can best serve the donor’s true intent while also addressing the organization’s needs.
On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features John Walter,
President & CEO,
Alliance for Cancer Gene Therapy, a
BBB Accredited Charity, which strives to build alliances between philanthropic individuals and organizations,
and medical and academic institutions, to promote cell and gene therapy research in order to combat cancer.
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
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 reported in the New York Timeson May 28, “federal government weather forecasters logged preliminary reports of more than 500 tornadoes in the United States in a 30-day period.” That remarkable total also underscores the damage and devastation these horrible storms have left in their wake. Multiple tornadoes struck Ohio during the night on May 27th, devastating homes and businesses in cities, such as Celina, Dayton, Trotwood and Beavercreek.
Oklahoma has also experienced extreme weather. Due to tornadoes, flooding and severe storms, the Oklahoma Department of Emergency Management has declared that all of Oklahoma is under a state of emergency.
BBB Wise Giving Alliance continues to recommend contributing to experienced relief organizations that meet the 20 BBB Standards for Charity Accountability, particularly in the wake of natural disasters. Visit BBB’s Give.org to access reports on these and other charities. Experienced relief organizations are more likely to provide quick and effective assistance.
If you are also considering crowdfunding sites, we offer the following additional advice:
Donate to People You Know. While charities can be vetted, it is much more difficult to assess the trustworthiness of individuals who have posted a request for assistance. As a result, it is safest to give to crowdfunding postings of people you personally know.
Review Crowdfunding Procedures. Crowdfunding platforms are not all the same. Some do a better job of vetting postings and projects that appear on their site than others. Review the site’s description of its oversight procedures before you participate. If you can’t easily find this description, visit a site that is more transparent.
Pictures May Not Be Authorized. Some crowdfunding postings may be using pictures of impacted families without their permission. As a result, don’t assume a photo confirms an official connection. Again, each site has different rules and verifications.
Your gift may not be deductible. If a crowdfunding posting is claiming to be helping a specific named individual or family, donors in the U.S. generally cannot claim a federal income tax deduction as a charitable gift, even if the individual or family is in need. See IRS Publication 526, page 6, for more information on this subject.
How funds will be used? Vague descriptions of how the collected funds will be used should also be a yellow caution light. For example, will the funds be used to assist medical expenses, reconstruction, funerals or other activities? Thoughtful requests for funding will take the added step of identifying and verifying needs before money is raised.
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a video featuring an interview with Beth MacNairn, Deputy Director, Health Volunteers Overseas (a BBB Accredited Charity) that works to address the global health workforce crisis by implementing programs that meet the needs of the host country and institutions, are sustainable, and build local capacity. The organization states that its volunteers provide clinical and didactic education through continuing education and degree granting programs, faculty and staff training, mentoring, education material development, and professional collaboration.
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.
H. Art Taylor, President & CEO
BBB Wise Giving Alliance
Many donors are motivated to give in response to the protest movement addressing racial justice issues. So, we thought we would provide tips to help you make wise giving decisions regarding charities addressing civil rights, free speech, legal rights and related topics. We also have included a starter list of BBB Accredited Charities (i.e., charities that meet all 20 of the BBB Standards for Charity Accountability) that appear to work in such areas. We hope these tips will help you give with greater confidence to charities of your choice.
Find if they have a clear plan
Consider looking beyond the organization’s name and website graphics and find out if they are clear about their planned use for solicited funds. Be careful about organizations that provide detailed descriptions of problems or set high financial goals “we want to raise $10 million” but provide vague or spare explanations about how they will address the issues.
Look for details when appeals are highly emotional
Almost all charity appeals have an emotional component that inspires donors to give. Use caution, however, if you find the heart-wrenching approach is used to an excessive extent and the content has a lack of details about the organization plans to address its mission. Before reacting, look for additional information about how the charity will carry out is programs and services.
Review the track record of experienced charities
Charities with significant experience in addressing civil rights and related matters can provide an additional degree of assurance. They have a track record that you can review such as annual reports, financial statements and the financial form filed with the IRS – Form 990. They also may have developed skills and activities that have proven to be effective. If you don’t see a charity report on Give.org or BBB.org, information such as a charity’s tax status and IRS Form 990 may be available at apps.irs.gov/app/eos
Newly established groups are more difficult to vet
Charities that are newly established can provide an element of excitement and potential for creative ideas, but they are harder to check out, especially if have not completed their first full fiscal year. A financial statement or annual report will not yet be available. If a donor wants to consider supporting a new group, see if their website includes: (a) a clear description of their program service activities, (b) a plan that identifies how much they want to raise and explains how they plan to spend it, and (c) a board roster that identifies the professional affiliations of board members. A donor in the U.S. also may want to ask to see a copy of their IRS Form 1023, the application form for their charity tax-exempt status.
Check their social media
Review the charity’s social media to get up to date information on their activities, especially if you are interested in how they are responding to current issues.
Direct support or redistribution
Some charities raise funds for activities that they will carry out directly. Others may be collecting funds with the intention of re-distributing money to other organizations that will carry out the work. While you can support either organization, you may want to verify the type of charity you are considering. You always have the option of “cutting out the middle man” by directly supporting charities “with boots on the ground.”
Check with state charity officials
In about 40 states, charities are required to register before soliciting, usually with either the office of the attorney general or office of the secretary of state.
Not all soliciting groups are charities
Not all nonprofit organizations that are soliciting you for donations about civil rights and related matters are charities, tax exempt under section 501(c)(3) of the Internal Revenue Code. It is okay to support other groups with the understanding that your contribution may not be deductible as a charitable donation for federal income tax purposes.
Crowdfunding cautions
While charities can be vetted, it is much more difficult to assess the trustworthiness of individuals who have posted a request for assistance. As a result, it is safest to give to crowdfunding postings of people you personally know. Some crowdfunding platforms do a better job of vetting postings and projects that appear on their site than others. Review the site’s description of its procedures. If they do take precautions, they generally announce that fact loudly to help encourage giving. If a crowdfunding posting is claiming to be helping a specific named individual or family, donors in the U.S. generally cannot take a federal income tax deduction, even if the individual or family is in need. Vague descriptions of how the collected funds will be used should also be a yellow caution light.
BBB Accredited Charities addressing racial justice as well as other civil rights, free speech, and/or legal issues
Below is a list of soliciting charities that meet the 20 BBB Standards for Charity Accountability (i.e.,, are BBB Accredited.) Some of them are nationally soliciting charities evaluated by the BBB Wise Giving Alliance. Others are regionally-soliciting charities evaluated by the BBB Foundation of Metropolitan New York. There is no charge to charities for the accreditation assessment and reports are available to the public on Give.org or BBB.org.
Canadian-based charities: If you are considering donating to a Canadian-based charity, there is a list of Registered Charities provided by the Government of Canada, which can be found here. While the registration with this government agency does not mean the government is recommending or endorsing the charity, it does signify that the group has filed the appropriate paperwork with this agency.
Video of the Week
The BBB Wise Giving Alliance is proud of our network of trusted accredited charities, which are rising to the challenge of dealing with the COVID-19 pandemic in innovative ways to safely serve us all. Art Taylor speaks with Claire Babineaux-Fontenot, CEO of Feeding America (a BBB Accredited Charity), about delivering programs during this challenging time.
Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.
H. Art Taylor, President & CEO
BBB Wise Giving Alliance
42 percent of nationally-soliciting charities that did not meet one or more of the BBB Standards for Charity Accountability in the past year either did not produce an annual report or had a report that did not include all of the recommended information (mission, program service accomplishments, board roster and finances.) To meet the financial information section of this standard, the annual report could include either the full financial statements or, at a minimum, total income, total expenses broken out by programs, fundraising and administration and ending net assets.
BBB Charity Standard 16 calls for charities to have an annual report available to all on request. The objective is to ensure that donors have access to certain basis facts in a single document. Such a report does not have to be a fancy, expensive printed publication — it can be a simple word processed document or a page on the charity’s website that can be printed out for those seeking a hard copy. It should describe what the charity does in clear, layman’s terms, which is why we consider it such a valuable tool — it’s a simple way to get a very good idea of the charity’s work.
We believe the contributing public deserves this type of understandable and accessible transparency. Although the IRS Form 990, the annual information return that most charities are required to file, has become quite accessible on the web, not all donors can easily understand this format. Another limitation is that, in many cases, the program service description included in the IRS Form 990 lacks sufficient detail about the charities activities in the past year.
Those who recognize the potential value of an annual report also know the marketing opportunity it provides to help the charity tell its story.
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a video featuring Cheryl Crazy Bull, President and CEO, American Indian College Fund, (a BBB Accredited Charity) which works to help all Native people meet their potential by providing them with access to a higher education. In the 2016 fiscal year, the organization provided approximately 4,100 scholarships to students seeking to better their lives through higher education. AICF also provides financial and programmatic support for the needs of 34 accredited tribal colleges and universities, ranging from capital support to cultural preservation curricula.
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.
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
On June 12th, the BBB Wise Giving Alliance will be hosting a 
