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Power of Trust: Why Charities Should Disclose

 

No Charge for Accountability Assessment

Disclosing governance, financial, results and fundraising information is the first step in the process of becoming a BBB Accredited Charity ─ which means the charity meets all 20 of the BBB Standards for Charity Accountability. There is no charge for this accountability assessment.

Improve Practices, Identify Deficiencies

While not all charities that disclose are able to initially meet all of the BBB Charity Standards, BBB Wise Giving Alliance works with organizations to help address issues raised in these evaluations. This assessment provides value to each organization as it receives personal attention based on the facts and circumstances that it brings to the BBB Wise Giving Alliance’s attention. The result is a confirmation of existing strengths and/or the identification of existing deficiencies that can be addressed to further improve the charity’s practices.

Helping Donors Make Wise Giving Decisions

For over a century, donors have been coming to BBB for information on charities and today’s charitable marketplace makes that objective even more challenging in view of the continuing growth in the number of charities. Participating in the BBB WGA charity evaluation process enables donors to have access to basic facts about a charity while also verifying a charity’s trustworthiness.

Trust is a Necessity for the Charitable Sector

Trust is one of the most valuable components of the charitable sector. Without trust, donors would hesitate in their funding, projects would get less community support, and organizations will likely have a harder time reaching objectives. Given its value and significance, a charity would be wise to consider what proactive steps it has taken to strengthen the public’s trust. BBB WGA believes that the accountability assessments it completes can help charities address this vital element of charity stewardship.

Accountability is More Than Just Finances

Charities that are unfamiliar with our reporting, may mistakenly believe that BBB WGA’s approach to accountability is confined to just financial ratios. That has never been the case and unfortunately that myth is sometimes used as an excuse by charities to not participate in the reporting process. BBB WGA has always recognized that a comprehensive assessment provides a more complete picture of a charity’s accountability.

RESEARCH DEMONSTRATES THE VALUE OF MEETING STANDARDS

Research has indicated that meeting all 20 BBB Standards for Charitable Accountability is associated with an 8 percent increase in fundraising revenue for nationally-soliciting charities. The 2013 study was completed by Professor Greg Chen of the Baruch College School of Public Affairs, City University of New York. Read more about this research at the following link: Accreditation Study

Want to view additional discussion about the disclosure issue? For a more detailed discussion of the value of disclosure, see the following past cover story form the Wise Giving Guide: click here

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