Category: Wise Giving Wednesday

Yesterday I had the honor of representing the BBB Wise Giving Alliance at a press conference about charity fraud hosted by the Federal Trade Commission and state charity regulators. The unprecedented complaint was brought by the FTC and all 50 states as well as the District of Columbia against four cancer charities engaged in deceptive practices. The fact that three of the charities mentioned in the complaint (Cancer Fund of America, Cancer Support Services and Children’s Cancer Fund of America) chose not to disclose detailed information to BBB WGA after repeated written requests says much about their trustworthiness. Donors coming to our site would have seen a big red exclamation mark giving warning about the lack of transparency of these charities. The fourth charity mentioned in the complaint (Breast Cancer Society) did provide information and was found to not meet several of the BBB Charity Standards, and did not respond to additional questions about their fundraising activities and finances. I characterized the 147 page complaint as chock-full of allegations of deception. One deception involved inflating the value of their in-kind donations (which goes against Generally Accepted Accounting Principles). This enabled the charities to deceive donors into believing more money was going to programs than actually was. The second deception, involving Cancer Support Services, (an entity so closely related to Cancer Fund of America that we included both organizations in the same BBB WGA report), gave donors a false impression of low fundraising at Cancer Fund of America. Cancer Support Services performed fundraising activities on behalf of Cancer Fund of America, which allowed Cancer Fund of America to report lower-than-actual fundraising expenses. The third deception gave donors false impressions of the nature of the charities’ program activities. Appeals referenced services such as hospice care and the shipment of pain medication, oxygen and other life-saving items to cancer patients. The complaint alleges that none of these services were being provided. The final deception dealt with significant failures of governance and management. Each entity’s board included family and compensated members who provided little to no oversight. As a result the public’s trust was violated when the boards failed to provide basic controls such as CEO performance reviews, budget approval, and general financial oversight. What’s saddest of all is that this case can have a chilling effect on giving. I hope it won’t. As donors, we should not be dissuaded but we should investigate before we do. Let this sad case be a constant reminder. 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:

• Comic Relief
• Drug Policy Alliance
• Food for the Poor
• Progressive Agriculture 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

Last week’s Wise Giving Wednesday blog talked about the impact of the U.S. federal government shutdown on federal workers in terms of meeting immediate needs due to loss of pay. News accounts are reporting that food banks and other social service charities are already experiencing increased demands and a local United Way has launched an emergency fund. As BBB Wise Giving Alliance is located in the Washington, DC metro area, we are seeing these effects first hand. For example, Tuesday night, a local supermarket located just blocks from our office was offering free spaghetti dinners to anyone in the community. Businesses in other parts of the country, such as in Denver, are also offering help. We expect to see more of this type of generosity if the shutdown continues.

The impact of the government shutdown on charitable organizations, however, is not just the expected increased demands for their help. Here are some examples of how the situation expands its influence.

Loss of Federal Funding. A number of charities, such as homeless shelters and other social service groups are dependent on federal funding. The loss of this support will likely cause some organizations to cut back on their own staff and activities at a crucial time. Unfortunately, there are insufficient alternative resources to fill those gaps 

Expected Drop in Combined Federal Campaign. As reported on the website of the Office of Personnel Management, this past Friday, January 11^th, was the solicitation deadline for federal employees donating to the Combined Federal Campaign (CFC). This unfortunate timing will likely significantly impact government employee participation in this charitable effort which supports many charities around the nation. While the CFC has experienced a drop in funding in recent years from a high of $282 million in 2009 to a low of $177 million in 2015, this shutdown is likely to result in even further reductions.

[BBB WGA update:  A recent memorandum from the Office of Personnel Management indicated that the January 11^th deadline was extended for 31 days.]

Potential Volunteering Losses. Federal workers not only help charities with the combined campaign mentioned above, but also volunteer their time at a number of charities. It is difficult to judge what impact the shutdown will have on volunteering but some households will understandably be more focused on meeting their own needs while they are not receiving a salary.

While we do not have answers to these emerging problems, concerned donors are encouraged to donate to BBB Accredited Charities that are addressing some aspects these needs.  You can help verify a charity’s trustworthiness by viewing an evaluative report completed by BBB Wise Giving Alliance or a BBB in your area. Visit Give.org.

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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 Janet Mintzer, President & CEO, Pearl S. Buck International (a BBB Accredited Charity) which carries out international exchange programs, cultural appreciation and education programs, child sponsorship, humanitarian aid, public exhibits, and the preservation and interpretation of the Pearl S. Buck House. 

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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:

• Alzheimer’s Association
• National Breast Cancer Foundation
• Organization for Autism Research

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

 

Memorial Day reminds us to honor and mourn for those who gave the ultimate sacrifice while serving in the U.S. Armed Forces. To show respect for this federal holiday, some will choose to contribute to charities that address a variety of issues and needs facing veterans, military service members and/or their families. BBB Wise Giving Alliance offers the following advice to help donors make wise giving decisions to such organizations:

• Watch Out for Name Confusion. Some veterans charities include the same words in different order or slightly different form. So, be alert and make sure the organization you are considering is the one you want to support.
• Identify What They Do. Don’t assume what the veterans organization does based on their name alone. Look for a clear description of the organization’s programs in its appeals and on its website.
• Be Cautious on Phone Appeals. If not managed properly, some telemarketing campaigns for veterans organizations can be an expensive way to raise funds with very little going to the organization. If called, do not hesitate to ask for written information or visit the group’s website to find out about its programs and finances before making a giving decision.
• Be Wary of Excessive Pressure.  Don’t be pressured to make an immediate on-the-spot donation to a veterans organization. Charities will welcome your gift whenever you want to send it.
• Learn How Donated Items Will Be Used. Find out how the charity benefits from the collection and resale of used clothing and other in-kind gifts. Sometimes the charity receives only a small portion of the resale price of the item or may have a contractual arrangement to get a flat fee for every household pick-up, no matter what the contents.
• Check Outside Sources Before Giving: In addition to charity reports on BBB’s Give.org, check with your state government’s charity registration agency, usually a division of either the Attorney General’s office or Secretary of State’s office.

The following organizations meet all 20 of the BBB Standards for Charity Accountability (i.e., BBB Accredited Charities.) See the reports in the respective links.

America’s VetDogs – The Veteran’s K-9 Corps
Armed Services YMCA of the USA
Blinded Veterans Association
Boot Campaign
Boulder Crest Retreat Foundation
Children of Fallen Patriots Foundation
Coalition to Salute America’s Heroes Foundation
Code of Support Foundation
Corporate America Supports You
Disabled American Veterans
EOD Warrior Foundation
Gary Sinise Foundation
Homes for Our Troops
Honor Flight Network
K9s for Warriors
Marine Corps Scholarship Foundation
Military Spouse Corporate Career Network
Military with PTSD
Operation Gratitude
Soldiers’ Angels
Team Red, White & Blue
Travis Manion Foundation
USO
Veterans of Foreign Wars National Home for Children
VFW Foundation
Wounded Warrior Project
Wounded Warrior Family Support

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Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video interview with Debra Kloeppel, Founder and President of Military Spouse Corporate Career Network, a BBB Accredited Charity that provides targeted employment assistance, vocational training, and one-on-one job placement services for military spouses, caregivers of war wounded, and military family members at no-cost to the job-seeker.

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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:

• Elizabeth Glaser Pediatric AIDS Foundation
• Give Kids the World
• Penny Appeal USA

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

 

 

From time to time, we are asked to provide tips on crowdfunding sites. As a result, we wanted to once again share our top tips on making donations through these platforms.

The guidance below is focused on donation-based crowdfunding, where people and/or organizations are asking for support of a cause or a personal need. This guidance is not intended for rewards-based crowdfunding where someone raises money to make a product with the promise participants will get a sample, or equity-based crowdfunding which operates like an investment where you are promised shares and/or a portion of profits for a business that is being established.

In turn donation-based crowdfunding platforms can be broken down into for-profit sites as well as crowdfunding platforms that are run by charitable organizations themselves such as GlobalGiving Foundation and DonorsChoose. Below are tips to keep in mind for donation-based crowdfunding sites.

Give to people and organizations 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. If that is not possible, the next best circumstance is to find out if the funds collected by a posting are going to be forwarded and distributed by an established charitable organization. In that case, the organization can be checked out and the involvement of a third-party organization can provide an additional level of oversight and assurance.

Not all crowdfunding sites operate alike.  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. For example, if a posting is claiming to be raising funds to help a victim and/or their family after a tragedy or disaster one site holds the funds collected and distributes them directly to the identified family. For other sites, the giver is relying on the individual to follow through on their promised assistance.

See if the posting describes how funds will be used. Vague descriptions of how the collected funds will be used should also be a yellow caution light? Thoughtful collections will take the added step of identifying and verifying needs before money is raised.

Don’t assume pictures represent an official connection to the person or family identified.  Unfortunately, some crowdfunding postings may be using pictures of victims without the permission of their families. As a result, you can’t assume the poster has an official connection. Again, each site has different rules on what they allow. As a donor, it is up to you to approach with caution, especially after a tragedy or disaster.

Your contribution may not be deductible as a charitable gift. 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. See IRS Publication 526, page 6 for more information on this subject.  On the other hand, if you are giving to a charitable organization that is helping a group of individuals and you are not restricting your gift to a specific person, then you can take a deduction. Additional factors should also be considered such as whether the crowdfunding site is being run by a charity or a for-profit firm. See a previous Wise Giving Guide article for more information about how this might impact deductibility.

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Video of the Week

This week, we have an interview featuring Miki Farris, Executive Director of Infant Crisis Services (a BBB Accredited Charity) about how COVID-19 is impacting their programs and the communities they serve.

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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:

• Global FoodBanking Network
• Share Our Strength
• Wounded Warrior Project

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

If you received an email that appeared to be from the CEO of your organization asking if you were at your desk, would you respond? Not surprisingly, many of us would. Next, you would likely receive a follow-up email asking you to urgently obtain and forward some gift cards or some other immediate financial request.

This is an example of an email scam known as business email compromise fraud. Attempts just like the one described happened more than once at the BBB Wise Giving Alliance in the past year and are probably also taking place at charities across the country. What signals some recipients that something is amiss is the part that asks you to forward something of immediate value (gift cards), unusual (tax information on employees) or urgent manner.

This email fraud can also take a variety of forms. The subject line might be “follow-up,” “urgent/important” or some other topic that gets your attention. So, how can organizations protect themselves from this scam?

• Hover over the name in the “from” section of the email to see if the address is actually originating from the organization’s executives. Keep in mind that some scammers might create an email address that looks awfully similar to the actual one being used.

• If the request sounds odd, verify by calling your boss or send a separate email, typing their correct email address on your own, and ask if they know anything about the request you received.

• For all internal emails in your organization (i.e., staff members communicating with each other), use a secret code, such as the number 456, in all your internal email subject headings so that other staff members know this is an actual email originating within the office itself. Do not share or display that code with anyone outside the office.  Periodically change the code.

• Develop and distribute protocols for the security of personal data on employees and how any transfer of funds is to be completed.

• Should a breach take place, set up a procedure, in advance, about how to handle the circumstances and prevent others from being taken by a similar approach.

For additional advice on this subject, see the following Better Business Bureau article: BBB.org/BECscams

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Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring Fred Puffenberger, Executive Director of the VFW National Home for Children (a BBB Accredited Charity), an organization that works to provide children and families of active-duty soldiers and war veterans with resources and housing for up to four years at no cost to the families.

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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:

• Food for the Hungry
• PKD Foundation
• We Raise Foundation

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

Twenty-five years ago, charity transparency was often viewed as the availability of charity financial information such as the IRS Form 990, the annual financial form filed by U.S. charities. (In Canada, charities complete Form T3010 with Canada Revenue Agency.) Back then, the Form 990 was not easily accessible on the internet, and one had to either request a copy from the charity itself or approach a government source (such as the IRS or one of the U.S. state government agencies that regulate charities.) Today, however, the IRS Form 990 is easily available on either the charity’s own website or by visiting the websites of GuideStar (now Candid), government agencies and other sources. 

In contrast, BBB Wise Giving Alliance has always viewed transparency as being much more than access to a financial statement. The 20 BBB Standards for Charity Accountability cover a variety of issues including governance, results reporting, appeal accuracy, donor privacy as well financial issues. Provisions of these standards call for charities to make other disclosures on its website and materials. This broad view is not a new approach to transparency but one that has been part of our charity reporting legacy for over a century.

It is difficult to know with certainty how charity transparency will evolve in the future. But if current internet trends continue, it can be summed up in five words: more information in real time. Donors are likely to expect access to more charity information to be made quickly available and at their fingertips. This expectation has been influenced by a number of developments such as crowdfunding sites that display a changed tote board number with each additional donation made and news about natural disasters and tragedies being available in seconds rather than hours.

Our best advice to donors is that no matter what trends emerge, remember the importance of verifying charity trustworthiness before a contribution is made. This additional step, such as visiting Give.org to access BBB Charity Reports, will help you avoid disappointment and encourage your generosity.

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Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring an interview with Andrea J. O’Neill, Executive Director, Lupus Research Alliance (a BBB Accredited Charity) which seeks to find better treatments and support medical research to ultimately prevent and cure systemic lupus erythematosus (SLE or lupus), a debilitating autoimmune disease.

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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:

• Children with Hair Loss
• Mennonite Central Committee
• Rise Against Hunger

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 and CEO
BBB Wise Giving Alliance

The holiday giving season is the most generous time for donors. Since 2012, however, it has become even more so with the emergence and growth of GivingTuesday which was started by the New York-based 92Y in collaboration with United Nations Foundation. Taking place on the Tuesday after Thanksgiving in the U.S., this movement has cumulatively help generate over $1 billion for online charitable giving worldwide. While this movement initially operated as a program of 92Y, in the past year GivingTuesday has become a separate charitable organization. For more information on GivingTuesday and other giving days, see the cover story of the latest edition of the Wise Giving Guide.

If you participate on GivingTuesday on December 3^rd, BBB’s Give.org urges donors to research charities before giving to ensure their generous contributions are going to trustworthy organizations. “The evaluations we provide give donors insight into charity trustworthiness, helping them make wiser giving decisions,” remarks Art Taylor, president and CEO of BBB WGA. ”Holiday donations can make a real impact. Therefore, it’s critical that donors’ hard-earned dollars go to charities that operate ethically.”

BBB WGA is sharing five tips to help donors give wisely and make the most of their generosity this holiday season. 

1. Watch out for name similarities. When charities seek support for the same cause, their names are often similar. Before you give, be sure you have the exact name of the charity to avoid a case of mistaken identity.
2. Avoid on-the-spot donation decisions from unfamiliar organizations. The holidays bring a higher frequency of donation requests outside public locations. Don’t succumb to pressure to make an immediate giving decision. Responsible organizations will welcome your gift tomorrow as much as they do today.
3. Be wary of emotional appeals. Marketers have been known to exploit the holidays to make emotional pleas to donors. Always research to verify that your selected charity operates ethically.
4. Avoid charities that don’t disclose. Although participation is voluntary, charities that don’t disclose any of the requested information to BBB WGA raise a critical red flag for donors. Visit Give.org to find out if your selected charity is nondisclosure.
5. Rely on standards-based evaluations. Charities can demonstrate they are trustworthy by agreeing to in-depth evaluations such as the 20 BBB Standards for Charity Accountability. Get free access to charity reports at Give.org.

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Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring H. Art Taylor, President and CEO, BBB Wise Giving Alliance. Mr. Taylor provides tips on making wise giving decisions on GivingTuesday.

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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:

• American Autoimmune Related Diseases Association
• Osteogenesis Imperfecta Foundation
• Young Life

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 and CEO
BBB Wise Giving Alliance

As we approach Mother’s Day this coming Sunday, many mothers will receive flowers, cards, gifts, dinner invitations and other expressions of love from their family members. It’s a time to celebrate and show appreciation. Mom always knows best and through her nurturing and care, she taught many of us about the importance of helping others, especially those in need. So as we seek to thank mom on this special day, also consider the option of contributing to charity to honor her and demonstrate that her lessons on philanthropy were heartfelt.

Below are several BBB Accredited Charities (i.e., meets the 20 BBB Standards for Charity Accountability) that reference mother in their names:

Every Mother Counts (a BBB Accredited Charity) that works to inform, engage, and mobilize audiences to take actions and raise funds that support maternal health programs around the world. The organization reports that since 2010 it has sought to raise public awareness of maternal health through storytelling, filmmaking and research. It also invests in community-based programs seeking to improve quality maternity care. Several years ago, the organization introduced the orange rose as a symbol of maternal health and launched its first orange rose campaign.

Mothers Against Drunk Driving (a BBB Accredited Charity) works to protect families from drunk driving and underage drinking. The organization reports that the Campaign to Eliminate Drunk Driving aims to end this danger on Americas roads, and that PowerTalk 21 is a national day for parents to talk with their kids about alcohol. Bereaved families and injured survivors can call MADD’s 24-hour victim help line to reach a victim advocate. 

mothers2mother International (a BBB Accredited Charity) works with governments, local partners and communities to provide comprehensive support to HIV-positive pregnant women and new mothers in sub-Saharan Africa. The organization’s Mentor Mother program trains and employs HIV-positive mothers as frontline healthcare workers to help women access essential services and medical care by promoting HIV counseling, testing, and reducing the stigma about HIV through peer support.

There are many other charitable organizations engaged in addressing issues of concern impacting mothers. We encourage you to consider them as well and, as always, remind donors to seek out charities that meet the BBB Charity Standards.

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Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring Jeff Eastman, Chief Executive President, Remote Area Medical (a BBB Accredited Charity) which  operates mobile medical clinics throughout the world, with the majority occurring in the United States. At the organization’s mobile medical clinics, licensed volunteer practitioners treat patients by providing dental, vision, and medical services. RAM operates one to five-day clinics, with the majority being two-day clinics. In 2017, the organization reports that it delivered $13,000,000 in free care to more than 41,000 individuals.

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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:

• Fund for Animals
• Grassroots International
• National Space Society

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