Category: Wise Giving Wednesday

Since 1994, GuideStar has been most known for providing access to the annual federal financial forms filed by charities and other tax-exempt nonprofit organizations, the IRS Form 990.  A few weeks ago, GuideStar announced a new format for their organization profiles.  We thought we would alert readers to some features that can be of particular interest to charity donors. 

Free Access to IRS Form 990s: Those who are familiar with GuideStar can be assured that the IRS Form 990 continues to be accessible at no charge. In fact, three years worth of 990’s can be accessed – just look at the right side of an organization’s profile and click on the green button marked “Forms 990.”  (For first-time visitors to the site, please note that GuideStar requires registration to access a certain portion of information on its site but that registration is free.)   

Charting Impact : Back in 2010, BBB WGA engaged in a collaboration with both Independent Sector and GuideStar to produce Charting Impact, a reporting framework that consists of five (5) questions that charities can answer to help produce a report on their goals, strategies, capabilities, progress and accomplishments. Completing this reporting framework is also a means to help charities meet BBB Charity Standard 7.  We are pleased to note that GuideStar’s new organizational profiles place a significant spotlight on Charting Impact by placing this information at the beginning of the profile. This also helps donors avoid potential donor over-emphasis on charity financial information. Charities seeking to complete Charting Impact can access the following GuideStar link. 

In addition to the above, GuideStar profiles provide information on operations, interactive graphs that show finances over a period of time, and board leadership and diversity information. 

BBB Wise Giving Alliance believes that the more information that is available to donors, the better informed they are in making their contribution decisions. 

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Shawn Sweeney, Sr., Director of Community Engagement of the Jane Goodall Institute for Wildlife, Research, Education and Conservation (a BBB Accredited Charity).  The Jane Goodall Institute works to promote understanding and protection of great apes and their habitat on the legacy of Dr. Jane Goodall, its founder, and to inspire individual action by young people to help animals and to protect the environment. 

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:  

• Episcopal Relief and Development
• Feeding America
• National Audubon Society 

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

Strong earthquakes are frightening, devastating and immediately pull on our heartstrings. Nepal’s earthquake is no exception.  BBB Wise Giving Alliance encourages donors to respond but also be mindful of the giving tips in this link, which also includes a list of BBB Accredited Charities (i.e., charities that meet all 20 BBB Charity Standards) that are raising funds for various Nepal relief efforts. 

Media headlines about the Nepal earthquake and other disasters grab our attention.  The pictures are wrenching and the stories move us.   However, it is important to recognize that disasters are not fully resolved after the initial fund raising frenzy is over. It’s actually a long term effort that will involve different charities at various stages of development:  Emergency response, Disaster relief and Recovery. 

At the Emergency Response stage, the focus is on search and rescue, saving lives, and providing immediate medical attention.  This stage can last for five to ten days or more as relief workers sift through rubble, seeking trapped individuals, and helping others who were seriously hurt in the quake. This is the stage where the pictures and media cameras show us the horrible tragedy up close and motivate many of us to open our hearts and wallets to assist.  Keep in mind that not every Nepal relief charity is engaged in emergency response activities. Visit the charity’s website to find out what their specific activities will be. 

The Disaster Relief stage will involve the first month or more as the surviving population seeks temporary shelter, clothing, food and other essentials.  Relief charities often remind donors not to send packages of donated clothing and canned goods.  Although well intentioned, such efforts can create delivery challenges and other problems. Established charities prefer cash donations so that they can more easily get the items closest to the actual disaster in the quantities and types that are needed. 

The Recovery stage can last for a year or more and will involve rebuilding homes and communities to help restore areas to their previous level of functionality. This takes proper planning and careful coordination with the impacted population.  

So remember, the relief needs and activities don’t disappear when the headlines do. There are many opportunities to help and charities are counting on donors to think of them throughout the year as Nepal works its way from emergency response to recovery.  

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

• Crohn’s & Colitis Foundation of America
• InterVarsity Christian Fellowship/USA
• Livestrong Foundation
• SIGN Fracture Care International
• WaterAid America

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

Back in February, BBB Wise Giving Alliance alerted the charitable community about a fake-check overpayment scam.  It appears this scam is continuing using different names and affiliations, but the same scenario.  Charities receive an email from an individual expressing interest in making a five-figure donation and then sends the gift using overnight mail. Next, the scammer informs the charity he/she made an error and sent too much and asks the charity to immediately return a portion of the donation (several thousand dollars or more) to cover some type of medical emergency.  The charity returns the requested money, through a wire transfer or other quick method. The charity later discovers the original donation check is fake, and the organization has lost the amount it sent back to the individual.  

If a charity receives an email as described, we encourage the organization to post a notice on BBB Scam Tracker, a free interactive tool for individuals in the United States and Canada to report scams and fraud while warning others of malicious or suspicious activity.  BBB also collaborates and shares scam report data with law enforcement agencies. 

On a separate note, as part of our Building Trust Video Series, we are pleased to provide a video that features Jean Knaack, Executive Director of Road Runners Club of America (a BBB Accredited Charity) which promotes the development and growth of running clubs and running events, and supports the interests of recreational runners. 

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: 

• RISE International
• Robert F. Kennedy Human Rights
• Swim Across America 

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

There were many ceremonies and remembrances honoring the 15^th anniversary of September 11^th which took place this past Sunday. This also brings to mind what we experienced 15 years ago. Among other things, BBB Wise Giving Alliance received an unprecedented degree of media interest about fundraising efforts which were taking place in the wake of that terrorist attack. I joined the BBB Wise Giving Alliance staff just a few months earlier but never anticipated that the organization would face such a unique and demanding challenge in terms of helping donors give thoughtfully. 

A study released in 2003 by the Education and Research Foundation of the Better Business Bureau of Metropolitan New York contacted over 500 organizations from 37 states and 2 countries that were raising funds for some aspect of assistance regarding September 11^th victims, their families and/or other relief purposes. It is not surprising that this volume of activity led to some confusion among donors and those seeking help. A GAO (U.S. Government Accountability Office) report issued in December 2002 indicated that an estimated $2.7 billion was raised and made the keen observation that “more effective collaboration could enhance charitable organizations’ contributions in disasters.” This collaboration lesson is one that continues to grow in importance today, not just for disaster relief, but for all types of charitable organizations. 

Another key lesson learned is the importance of communicating accurately to the public about charity activities and how collected funds will be used, both in the immediate aftermath and longer-term, when vital disaster-related needs often emerge.  In some past cases, vague announcements about raising funds to help victims have led to donor misperceptions concerning what programs their contributions would support or how quickly those funds would be distributed or used.  While some of the larger relief-focused charities received a lot of scrutiny and attention and collected the bulk of funds raised, there were also a significant number of newly-created entities as well as charities without any experience in relief assistance that were collecting funds as well.  Sometimes these well-intentioned smaller efforts had no initial plans for how they would spend the amounts raised, which probably made it hard for them to issue clear fundraising appeals.   

This communication challenge is complicated by the nature of the disaster, which may disable telephone and internet connections at charities, businesses, and first responder groups, making it extremely difficult to coordinate relief activities.  Transportation and electrical facilities can also be disrupted in the wake of a major disaster.  In turn, staff may be unable to report to work at charities at a point in time when their services are needed the most; and staff members may themselves be disaster victims.  This can make it difficult to quickly identify the specific assistance that is needed and where it needs to be delivered. Another September 11^th lesson is that it can take time and be problematic to identify genuine victims, which further adds to delays in providing help. 

Nevertheless, charities on the scene with relevant expertise are sometimes able to identify unserved needs, stretch resources and provide help much faster than federal, state or local government agencies.  Government disaster relief funders are often burdened by procedures and paperwork that they are required to follow.  Some private funders choose to wait until government aid is finalized so that they can avoid duplication of effort; this may leave early-responding charities without needed funding streams at a critical time. It can be a Catch 22 scenario, but today funders and charities are more aware of these problems and are joining forces to try to anticipate such dilemmas and manage them more effectively with disaster plans.     

Some donors unrealistically expect charities to spend disaster funds as quickly as they are raised, which may be problematic and even inadvisable, given the circumstances. Even so, in the case of 9/11, most funds raised were quickly disbursed to meet urgent needs.  The mentioned study completed by BBB Foundation of Metro New York showed that by early 2003, 74% of all reported September 11^th contributions had been used and four of the most-well known groups had spent 95 percent of their donations.  Some charities raised funds for longer-term needs (e.g., reconstruction, scholarships, etc.) which will continue long after the headlines are gone.  Of course, when this is the case, it needs to be disclosed fully at the moment of solicitation. 

Providing an accounting of how funds are used is especially important for organizations engaging in disaster or tragedy-based fund raising. For example, charities can be transparent as events are unfolding by providing website updates about amounts raised and how they are being used. Today’s relief assistance donors eagerly seek information about how their contributions are taking effect, and may not want to wait until the audited financial statements and IRS Form 990 are available a year later. 

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Jim Stofan, Chief Operating Officer of Defenders of Wildlife (a BBB Accredited Charity) works to protect and restore imperiled species throughout North America by transforming policies and institutions and promoting solutions. Defenders promotes the conservation and restoration of North America’s vulnerable species through habitat preservation and restoration on public lands, securing greater wildlife conservation funding and defending and strengthening wildlife and public land management laws and policies.

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 Diabetes Association
• National Parks Conservation Association
• United Spinal Association  

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 its role as a standards-based charity evaluator, the BBB Wise Giving Alliance shares some common interests with federal and state government regulators of charities. In part, both are seeking to help identify bad actors and help the donating public in making wise giving decisions. Different tools, however, are being used to accomplish this objective. 

For government agencies, the monitoring of a charity’s compliance with laws and regulations covering charitable solicitations and fundraising companies provide a basis for correcting abuses in the philanthropic marketplace. For the BBB Wise Giving Alliance, the 20 BBB Standards for Charity Accountability enable us to complete comprehensive evaluations that address such issues as charity governance, results reporting, finances, appeal accuracy and donor privacy.

There are some key distinctions in the application of these different monitoring methods. Government agencies can require charities to submit requested materials through annual charity registration and, if needed, issue subpoenas for additional information to complete investigations. In contrast, BBB WGA relies on charities to voluntarily furnish information to trained and experienced analysts and complete an extensive online questionnaire to complete its standards assessment.

Another key difference is that while some of the BBB Standards for Charity Accountability capture elements of fundamental malfeasance such as deceptive appeals or self-dealing, our standards also address broader trust issues involving board oversight, website content or results reporting that go beyond legal requirements.

Both government agencies and BBB WGA hope to strengthen the public’s trust in philanthropy and help ensure that contributions are used for the purposes for which they are solicited.

Video of the Week  

As part of our Building Trust Video Series, we are pleased to provide a video featuring Michael Roberts, President and CEO,  First Nations Development Institute  (a  BBB Accredited Charity ) which works to improve economic conditions for Native Americans through technical assistance and training, advocacy and policy, and direct financial grants.    

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:

• CaringBridge
• Global AIDS Interfaith Alliance
• Opportunity International  

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

The Financial Accounting Standards Board (FASB) is an independent organization that establishes and improves standards for financial accounting for both for-profit and not-for-profit entities in the United States.  On April 22, 2015 the FASB announced proposed changes for all not-for-profit financial statements. It’s been quite some time since the audited financial statements of charities and other not-for-profits have been the subject of significant proposed changes.  Here at the BBB Wise Giving Alliance, we are especially interested in helping nonprofit leaders understand the potential impact of the updates proposed by FASB. BBB WGA has always focused on a charity’s audited financial statements (as opposed to the IRS Form 990) as part of its review.  While finances are addressed in just a portion of the 20 BBB Standards for Charitable Accountability, they understandably get a great deal of donor attention.  

Some of FASB’s proposed changes in the audited financial statements of charities include increased disclosures about financial asset liquidity (i.e., what portion of assets is available now), the sources and uses of a charity’s cash, and donor restrictions on the use of funds. To assist charity executives and others in understanding these changes, the BBB Wise Giving Alliance and the Metro New York BBB Education and Research Foundation are jointly offering a no-cost webinar on May 21, 2015 at 1pm EDT.  The webinar is generously sponsored by EisnerAmper LLP.  The two presenters will be Julie Floch and Candice Meth, both distinguished partners in not-for-profit practice at this well-known, BBB Accredited accounting firm.  While the webinar can accommodate up to 1,000 registrants, we encourage interested participants to sign up while there is still room. To learn more about the webinar and register visit: www.go.bbb.org/ny-fasbchanges 

Wise Giving Wednesday readers who are interested in providing FASB comments on their proposed accounting changes will have until August 20, 2015 to send comments to them.  For additional details, visit fasb.org.   Feedback can be provided to FASB directly through an electronic response form.  

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:    

• Help the Afghan Children 
• Mothers Against Drunk Driving 
• Oceana 
• Soldiers’ Angels 

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

Those who attended our June 12^th conference on “Advancing trust in the Charitable Sector” benefited from the expertise of a variety of experts and thought leaders who provided a broad overview of accountably and trust issues facing charities in the United States and abroad.  While I intend to produce future blogs on some of the discussions that took place, I want to share a few highlights for those who were unable to join us. 

Security & Privacy: Alison Lefrak of the Federal Trade Commission (Senior Attorney, Division of Privacy and Identity Theft Protection) explained how the FTC plays a leading role in addressing online privacy and security protections for consumers and that it supported proposed data security legislation that would give FTC jurisdiction to bring cases against nonprofits as well.

Cultural Differences that Influence Trust: Representatives from the Taiwan NPO Self Regulation Alliance and DZI (Germany’s charity monitoring organization) explained how they report on charities in their respective countries and the significance of their work in strengthening donor trust.

ALS Association & Ice Bucket Challenge:  Carrie Martin Munk, Chief Communications and Marketing Officer, ALS Association, gave a fascinating summary of how ALS Association handled the large volume of donations they received and described their ice bucket plans for 2015. 

Gaining Trust of New Generations:  Derrick Feldmann, President & Founder of Achieve, talked about how charities have sought to engage Millennials and noted that he is working on a revised study on Millennials and charities.

Communicating Charity Value & Inspiring Trust:  Andrew Watt, President & CEO, Association of Fundraising Professionals, underscored the significant role of ethical standards in ensuring a trustworthy charitable sector and reminded everyone that true change takes time and continuing effort to achieve and is not quickly accomplished.

The audience appreciated the observations and insights provided by these and other speakers and had an opportunity to raise additional points during the Q&A session after each panel.

We thank all the presenters and participants and will be providing links to slides and other information from this conference.

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

It’s September, and the kids are back in school across the country. And many parents out there know that this also signifies  not just the three r’s of Reading, wRiting and aRithmetic, but also the “fourth” R of raising funds. Yes, at many schools, families may be asked to help raise funds for school funding gaps, playground equipment or perhaps a special class project.  This can range anywhere from bake sales to book sales. To help ensure success, parent groups would be wise to make sure they have specific plans and goals in place that include stock letters to be sent to parents to introduce the fundraiser, keeping tracks of volunteer leaders for the event, being transparent during the campaign in terms of how much of the collected funds will go to the designated activity and maintaining paper trails to ensure donations are recorded, tracked and thank you notices are sent to contributors. 

Teachers seeking assistance for class projects might consider posting a request on DonorsChoose.org, a BBB Accredited Charity, that helps teachers across America post classroom project requests so individuals can provide funding. 

School fundraisers are not the only philanthropy to consider during the school year. In many areas of the country, high school seniors will be required to complete a specified minimum number of hours of community service in order to graduate.  To avoid the end of school year rush, the time to start identifying and making such volunteer arrangements for teens is now. Take the time to check out the charity before a teenager starts volunteering his or her time.  Make sure this is a cause and work environment that you are comfortable with before they start.  Among other things, see if there is a BBB report on the group and find out if the charity is properly registered with the state charity registration office (In the U.S. this is usually a division of the office of the Attorney General. In Canada, check out the Canada Revenue Agency.) 

And remember, the care and respect that you demonstrate in both funding and volunteering activities provides students with philanthropic lessons that will last a lifetime. 

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Mark Bergel, Ph.D., Founder and Executive Director of A Wider Circle (a BBB Accredited Charity).  A Wider Circle is an organization that works to end poverty for individuals and families by collecting and distributing donated goods, providing professional attire, job preparedness courses, and a well-baby program.  

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: 

• America’s Charities
• Parents Television Council
• Worldwide Foundation for Credit Unions 

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