Category: Wise Giving Wednesday

While I have written previous blogs on the subject of donor privacy, I would like to bring to your attention that our upcoming charity conference will include an outstanding panel discussion that addresses this issue even further. 

One of the panel discussions at our June 12^th meeting (Advancing Trust in the Charitable Sector) is on the subject of Charity Data Security & Privacy.  Senior privacy officials from two prominent nonprofits will discuss the unique privacy and security challenges their organizations face in today’s dynamic online environment, and will offer their insights on how to manage and protect sensitive personal information entrusted to charities by donors and others.  We will also hear from an FTC representative about the role of the regulator in  enforcing privacy and data protection laws as and promoting best practices at the state and federal level.  We lined up a great selection of speakers:

• Allison LeFrak,  Senior Attorney, Division of Privacy and Identify Protection, Federal Trade Commission
• William Karazsia, Assistant General Counsel and Chief Privacy Officer, National Student Clearinghouse
• Ellen Willmott, General Counsel, Susan G. Komen 

Each of these speakers will bring a unique and important perspective about the challenges charities face as they seek to protect their donors and other contacts from unauthorized access to data charities maintain about them.  This  issue is more than just protecting credit card information when making online gifts but extends to all forms of private information that a charity may handle as a routine part of its interactions with the public and other users.

We hope that you may be able to join us on June 12^th.  Registration is still open.  If not, we intend to share some of the highlights of this meeting in a future posting.     

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:     

• Foundation for Peace
• Pediatric Cancer Foundation
• Spina Bifida Association of 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

Following the outpouring of public shock and concern over the events in Charlottesville, Virginia, many are seeking to assist the victims of violence directed at those protesting the white supremacist rally. As with other tragedies, bad fundraising actors are more likely to strike when emotions run high. The Office of the Attorney General in Virginia issued a press release yesterday urging donors to exercise caution as they consider donating money to assist victims in their recovery. BBB Wise Giving Alliance also shares the following tips to assist contributors.

1. Wise Giving. Don’t assume the first contribution request is the best choice. Take the time to find trusted charities that are providing assistance.
2. Crowdfunding Cautions. Questionable solicitors may set up a crowdfunding page but have no official connection to the victims and/or their families, or to any charitable organization. While some crowdfunding sites have implemented procedures to help prevent fraudulent efforts, especially after a tragedy, others don’t. Also, crowdfunding sites vary in terms of fees charged for transactions and when collected donations are released to the fundraiser.
3. Respecting Victims and Their Families. Organizations or individuals raising funds should get permission from the victims and/or their families to use either the names of the victims and/or any photographs of them.
4. How Will Donations Be Used? Watch out for vague appeals that don’t identify the intended use of funds. For example, how will the donations help victims and/or their families? Also, unless told otherwise, donors will assume that funds collected quickly in the wake of a tragedy will be spent just as quickly. See if the appeal identifies when the collected funds will be used.
5. What if a Family Sets Up Its Own Assistance Fund? Some victims and/or their families may decide to set up their own assistance funds. Be mindful that such funds may not be set up as charities. Also, if collected monies are administered by a third party such as a bank, CPA or lawyer, this will help provide oversight and ensure the collected funds are used appropriately (e.g., paying for medical expenses, counseling, and other tragedy-related needs.)

For additional information about making informed giving decisions, visit Give.org.

As part of our Building Trust Video series, we are pleased to provide a video that features Rabbi Yechiel Eckstein, Founder and President of the International Fellowship of Christians and Jews (a BBB Accredited Charity) which seeks to promote understanding and cooperation between Jews and Christians and to build broad support for Israel and other shared concerns.  

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 Red Cross
•   SADD
•   World Monuments Fund 

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

For a number of years, the Internal Revenue Service has come out with its annual “ Dirty Dozen” list of tax scams to help people avoid schemes that may impact them during tax filing season. This year “fake charities” came up as number five, moving up one notch from last year’s entry. As stated in an IRS press release featuring IRS Commissioner John Koskinen, “Fake charities set up by scam artists to steal your money or personal information are a recurring problem. Taxpayers should take the time to research charities before giving their hard-earned money.” 

If a donor is claiming a charitable deduction on their federal income tax, it is important to make sure that the subject organization is eligible to receive gifts that are deductible as charitable gifts.  One can verify this by using the IRS Exempt Organization Select Check directory which identifies organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code. When using this directly, it is important to have the exact official name of the organization or, if available, the organization’s Employer Identification Number (EIN.)  

Even experienced contributors can make a mistake, by giving to a questionable appeal, especially following a major disaster, when donors might give with their hearts without using their heads. While it is unlikely for someone to recover such lost contributions, one can at least avoid doubling the error by claiming a charitable deduction for a fake charity that can lead to an incorrect tax return and potential further trouble. 

BBB Wise Giving Alliance also encourages donors to verify that the subject charity is registered to solicit charitable contributions in their state. About 40 states have a state government charity registration agency that is usually a division of the state’s office of the Attorney General or the Secretary of State. 

One caveat to remember is that houses of worship are not required to apply to the IRS for charitable tax exempt status and are also exempt from registering with state government agencies.  So, don’t dismay if your church around the corner does not appear in the IRS Select Check directory. 

In addition, in this time of rising cyber security concerns, one should be especially watchful for any appeal that requests personal information such as Social Security numbers, passwords, or other data that could be used to steal identities. 

Of course, we also remind donors they can help verify charity trustworthiness by visiting Give.org to see if the subject charity meets the 20 BBB Standards for Charity Accountability. 

On a separate note, as part of our Building Trust Video series, we are pleased to provide a video of Nadine Dehgan, Chief Executive Officer, Hearing Health Foundation (a BBB Accredited Charity) which seeks to prevent and cure hearing loss by funding research and promoting hearing health. 

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: 

• African Wildlife Foundation
• National 4-H Council
• Young Life 

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