New Colorado Privacy Regulations Take Effect July 1st

A recent article that appeared in the NonProfit Times reminds charities that a new Colorado Privacy Act (CPA) takes effect on July 1, 2023 and, unlike other similar legislation in other states, this law has no exception for nonprofits. Highlights of the rule appear in the Colorado Attorney General’s press release and additional details are available here.

Among other things, nonprofits and businesses will be required to:

• Confirm whether or not they process individuals’ personal data and provide them access to that information. 
• Enable individuals to opt out of the processing of their personal information. 
• Provide individuals the right to correct inaccurate personal information. 
• Provide individuals the right to have personal information deleted.
• Provide a meaningful privacy notice to individuals detailing their various rights.

Fortunately, BBB Accredited Charities (i.e., those that are found to meet all 20 BBB Charity Standards) already address these bullet points. BBB Charity Standards 18 (b), which addresses privacy concerns, requires charity websites to have a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

While Standard 18(b) was introduced as a voluntary standard to help protect donor privacy, we are encouraged that a state government appears to agree with these recommendations. This demonstrates that our standards accurately predicted some fundamental privacy principles that will become a required practice for many organizations starting this summer.

Video of the Week

As part of the Building Trust Video series, BBB WGA interviews Mike Horak, Development Director, Denver Children’s Home (a BBB Accredited Charity) which serves as an educational and mental health treatment facility to help both children and families. The organization seeks to help children and families develop coping skills and tools to help them move past their trauma, find strength and value in themselves and pursue a successful future.

Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with Shawnee Benton Gibson, CEO, Spirit of A Woman (S.O.W.) Leadership Development Institute and the Co-Founder of the ARIAH Foundation. Ms. Benton Gibson is the subject of a documentary called “Aftershock” which follows her and her family’s advocacy on reproductive issues.

• For All Seasons
• Polar Bears International
• Operation USA

Decline in Charity Volunteering

In a previous Wise Giving Wednesday post, we noted that 60.7 million people volunteered between September 2020 and 2021, comprising 23.2 percent of the U.S. population. As estimated by AmeriCorps, this represents 4.1 billion hours with an economic value of $122.9 billion. This total number of volunteers, however, reflected a 7 percent drop from the previous year which had a 30% volunteer rate. COVID-19 was blamed for that decrease in participation.

This week’s Chronicle of Philanthropy features a story about the continuing declining numbers of volunteers at charities, particularly Florida, where 23% of residents donated their time in 2017 that has now dropped to 16%. This drop has also been attributed to the pandemic which was particularly hard on older Americans which made up a sizable portion of those who volunteered in that state. The one exception has been Wyoming where volunteer participation increased from 33% in 2017 to almost 40% today.

The overall drop in volunteers was anticipated by charities. In March 2020, Give.org issued a Special COVID-19 Donor Trust Report that involved a survey of charitable organizations. At that time, 49.5% of charities said they were very or somewhat concerned about losing volunteers during the pandemic. In addition to this statistic on charity opinions, a separate survey of the general public revealed a declining perceived value of volunteering. When asked to identify the top three most impactful ways to make a difference with charities, 45% of the public said, “volunteering your time,” the second most popular answer in December 2018. This percentage dropped to 38%, third place, when that Donor Trust Report survey question was revisited in December 2021.

Volunteers make up a vital part of how charities achieve greater results with a small number of paid staff. Over time, charities will seek to rebuild this essential component of their operations. One lesson learned during the pandemic is the importance of maintaining communications with previous volunteers to help prepare them to transition back to participating with the charity when times improve. As donors consider their future volunteer options, we encourage them to also verify the charity’s trustworthiness by accessing the evaluative charity reports on Give.org.

Heart of Giving Podcast

For this week’s Heart of Giving Podcast, BBB WGA shares Part II of its interview with Kateryna Zhuk, co-founder of Charity Turner, a Ukraine charity monitoring organization. She talks about the current situation in Ukraine, what charities are doing, and how we can contribute to help the people of Ukraine.

• Refugees International
• Every Child Ministries
• National Down Syndrome Society

Online Giving is 12% of Total Fundraising

As websites, social media and other online communications continue to take a growing part of our daily lives, many assume that charity fundraising is also dominated by online transactions. While it is likely that technology will eventually lead to that result, the current reality is far from it. The Blackbaud Institute, which is associated with a cloud software and services company that works with nonprofits, has been measuring online giving for over 20 years. An analysis of 4,535 organizations by this group showed that in 2021, online giving was only 12% of total fundraising.

This 12% statistic, however, incorporates a significant diversity of circumstances. For example, smaller organizations with less that $1 million had 17.8% of their funds raised online during 2021. In contrast, larger nonprofits of $10 million or more completed 11.1% of their fundraising online. There are also different experiences depending on the type or charity. Religious organizations raised 16.8% online while environmental groups raised 5.1% online during 2021.

Also, the prevalence of smart phones has impacted online giving as a growing part of online donations. Back in 2015, 14% of online donations were made on mobile devices. In 2021, 28% of these gifts were made on mobile.

For now, direct mail, fundraising events, and other fundraising methods, particularly for nationally soliciting charities, still dominate. While donors should not expect that to change overnight, the online giving trend will continue to pick up speed as younger generations of givers are more likely to make their transactions online. At the same time, charities might help encourage more growth if more charity websites were optimized for mobile devices to make it easier for donors to contribute using their phones.

There are other influences that could help grow online fundraising even faster. As reported in the NonProfit Times, new postal rate increases might loom due in part to the drop in U.S. mail volume.

No matter how one chooses to contribute, we encourage donors to make sure the chosen charity meets the 20 BBB Standards for Charity Accountability.

Heart of Giving Podcast

For this week’s Heart of Giving Podcast, BBB WGA interviews Kateryna Zhuk, co-founder of Charity Turner, a Ukraine charity monitoring organization. She talks about the current situation in Ukraine, what charities are doing, and how we can contribute to help the people of Ukraine.

• Urban Alliance 
• Fonkoze USA
• ICNA Relief USA

For those seeking to help the victims and families of the elementary school shooting in Nashville, Tennessee, the BBB offers the following tips to consider.

Does the solicitation respect the families of victims?
As charitable organizations and/or crowdfunding posts raise funds to help, they should obtain permission from the families to use either the names of the victims and/or any photographs of them. Don’t assume there is an official connection if photos are displayed.

Is there a description of the use of donations?
Be cautious about vague appeals that don’t identify the intended use of funds. For example, is money being collected for funeral expenses or other family needs? Also, unless told otherwise, donors will assume that contributed funds quickly collected after a tragedy will be distributed or spent just as quickly. Be mindful of public announcements that describe family assistance to help avoid donating to duplicative efforts.

Are donations tax deductible?
Contributions that are donor-restricted to help a specific individual/family are not deductible in the U.S. as charitable donations, even if the recipient organization is a charity. See IRS Publication 526, page 7, for more information on this subject.  

What should be considered in crowdfunding requests?
It is not unusual for fundraising to start within hours after a tragedy has occurred. Please keep in mind that while some crowdfunding sites take precautions in carefully screening, vetting, and managing postings after a tragedy, others might not. If you are unsure, review the posting procedures described on the crowdfunding site and find out about transaction fees and other specifics.

How can you verify a charity’s accountability?
Tragedies can generate donation requests from a variety of organizations seeking to help victims of violence or advocate on related issues. As always, we remind donors to check out charities by visiting Give.org to verify if the charity meets the 20 BBB Standards for Charity Accountability (i.e., a BBB Accredited Charity). Be cautious about newly created groups that will be difficult to check out.

Video of the Week

As part of the Building Trust Video series, BBB Wise Giving Alliance interviews Sharif Aly, CEO of Islamic Relief USA (a BBB Accredited Charity.) Mr. Aly talks about the organization’s relief efforts in Turkey and Syria after the devastating earthquake.

Heart of Giving Podcast

In this week’s program, BBB Wise Giving Alliance interviews Aimee Gilbreath, President of PetSmart Charities, (a BBB Accredited Charity) that grants funds to nonprofits aligned with its mission and partners with shelters to find forever homes for pets. Ms. Gilbreath discusses her love for animals and and what PetSmart Charities is doing in the animal welfare space.

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:

• Make-A-Wish Foundation of America
• National Breast Cancer Coalition Fund
• Nonviolent Peaceforce

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.

Virtually all small businesses receive contribution requests from charities addressing a variety of causes. For example, youth sports teams, health charities, disaster appeals and/or requests from police and firefighter organizations. While most organizations are carrying out their activities in a responsible manner, there are some charities that do not. Small businesses, unfortunately, may not have specialized staff or resources to manage donation requests and, as a result, can sometimes be more vulnerable than larger companies.

To help small businesses avoid questionable contribution circumstances, BBB Wise Giving Alliance offers the following advice.

Check with BBB.  For a variety of reasons, small business customers and clients will probably assume that any charity that is permitted to solicit on their property will have been verified by them. This is all the more motivation to not let them down. A small business should visit BBB.org or Give.org to see if they have a report that indicates the charity meets the 20 BBB Standards for Charity Accountability (i.e., a BBB Accredited Charity.)

Charity Registration with Government Agencies.  About 40 of the 50 states in the United States require charities to register, usually with the office of the attorney general or secretary of state. In Canada, businesses can check with the Canada Revenue Agency. Keep in mind that registration does not mean the government agency endorses, approves, or recommends the charity. It does, however, usually signal that the organization has at least completed the necessary paperwork, paid applicable fees, and has submitted necessary financial information to the applicable agency.

Clothing Donation Bins. If a business is approached about placing a metal clothing donation box near their parking lot or other publicly accessible area, make sure that the name of the charity is clearly identified on the bin along with a statement about how to get additional information, such as a phone number and/or website. The small business owner should ask the charity how the clothing donations will be used. One cannot assume they will be given to the needy. Some donations may be sold to thrift stores, turned into rag bond paper, or a combination of these possibilities. One should also ask how often the bin will be emptied and who can be contacted if the bin is not maintained in an orderly manner. 

Police and Firefighter Organizations. A small business should not assume that the words “police” or “firefighter” in an organization’s name means the local police force or fire department is involved. Also, watch out for a solicitor’s suggestion (it’s illegal) that your donation will give you “special treatment” from police or firefighters. For more tips on these groups, visit this link.

Excessive Pressure. Businesses should not succumb to excessive pressure to make an immediate donation. Well-run charities will welcome you to find out more about them so you might be motivated to make an even larger gift.  

Video of the Week

As part of the Building Trust Video series, BBB Wise Giving Alliance interviews Michelle DeLaune, President & CEO, National Center for Missing and Exploited Children (a BBB Accredited Charity) which seeks “to operate a national clearinghouse on missing and sexually exploited children; assist efforts to find missing children and reduce child sexual exploitation.”

Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with Mark Shamley, Vice President of Community Impact, Lift Orlando, which serves to strengthen the historic neighborhoods around Camping World Stadium in Orlando, Florida. Mr. Shamley is also a former Chair of the BBB Wise Giving Alliance Board of Directors.

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:

• Central Asia Institute
• Human Rights Watch
• Preeclampsia 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.

Learning from Organizational Transformation

“Nothing is constant but change,” which means effective charities must learn to be responsive. But adaptability and transformation are easier said than done, as they call for deep introspective work, openness to taking risks, and a willingness to think creatively about an organization’s capabilities – all while not losing sight of the organization’s mission.

BBB Accredited Charity CHC: Creating Healthier Communities recently went through a multi-year and purposeful process to transform from an organization uniquely focused on collecting and redistributing resources to one that works with partners to advance community health and health equity. In collaboration with CHC, BBB Wise Giving Alliance interviewed CHC leaders to record and share takeaways around renovating their identity, keeping a long-term view while advancing methodically, collaborating, integrating diverse communities, and building trust. As put by Thomas G. Bognanno, president and CEO of CHC (retiring March 31, 2023), “With many nonprofits, there’s a strong and understandable need for self-perpetuation. But once we made the decision that self-perpetuation was not our mission, the board had the freedom to examine the mission.” We hope the lessons learned and shared by CHC will be helpful to other organizations working through meaningful transitions.”

To that end, we invite you to watch an introductory video, or read our report 10 Lessons in Organizational Transformation – What CHC: Creating Healthier Communities’ Story Tells Us About Effective Strategic Evolution. For those who would appreciate learning more from CHC leadership directly, we invite you to register for a follow-up video conversation on March 28th.

BBB Wise Giving Alliance recognizes that many charities face volatile, uncertain, and complex issues. The lessons learned by CHC may help both charities and donors better understand how such challenges can be overcome. 

Video of the Week

As part of the Building Trust Video Series, BBB Wise Giving Alliance interviews Rabih Torbay, President and CEO of Project Hope (a BBB Accredited Charity.)  Mr. Torbay talks about the organization’s relief efforts in Turkey and Syria after the devastating earthquake.

Heart of Giving Podcast

In this week’s Heart of Giving Podcast. Laura Pachon, a DePaul University graduate student, serve as guest host and interviews Art Taylor, President and CEO, BBB Wise Giving Alliance.

Recent Reports

• Read to Them
• St. Baldrick’s Foundation
• Disability Rights Mississippi

Tips on Supporting Ukraine Relief, One Year Later

A year ago, BBB Wise Giving Alliance wrote in Wise Giving Wednesday about donating to Ukraine relief charities and completed seven subsequent entries. These blogs addressed the surge of Ukrainians to neighboring countries, transportation and distribution obstacles, and the many charitable organizations that were soliciting to help refugees as well as those remaining in Ukraine. There was a generous outpouring of American donors who contributed billions of dollars. Twelve months later, the war continues, and although contributions have diminished, charities carry on their assistance work and welcome support.

Finding Trustworthy Charities Addressing Ukraine Relief

With this in mind, here are some tips to consider in providing additional funding to help Ukraine.

Competing tragedies 

In the past year, the world has seen more than its share of disasters and tragedies such as earthquakes, severe weather and mass shootings. So, it is not surprising that an area with long-term devastation, such as the war in Ukraine, has a hard time sustaining continuing charitable assistance. Even if you have previously contributed, consider revisiting your support to help those in need.

Evolving activities

Check the relief charity’s website to see what activities they are currently carrying out in Ukraine. For example, Save the Children (a BBB Accredited Charity) includes the story of an aid worker in Ukraine that explains how the charity has assisted children in the past year in a variety of ways

Remember refugees

Consider the millions of people that fled Ukraine to other countries. There are organizations that continue to provide help to these refugee populations by addressing emergency shelter, food and medicine. For example, USA for UNHCR – The UN Refugee Agency (a BBB Accredited Charity).

Individuals at high risk

As reported in The Chronicle of Philanthropy there are certain individuals in Ukraine or refugees at high risk such as those with critical health issues or disabilities, displaced children, and older people. Also, efforts are needed to prevent gender-based violence and human trafficking.

Experienced, established charities

Donating to experienced, established relief charities based in the United States is best since you can more easily vet them. Find those that are BBB Accredited (i.e., meet all the BBB Charity Standards). Review the list of organizations on our previous blog and don’t forget to visit their respective websites to identify the nature of their current Ukraine assistance efforts.

Video of the Week

As part of the Building Trust Video Series, BBB Wise Giving Alliance interviews John and Merline Engle, Co-Directors of Haiti Partners (a BBB Accredited Charity) that offers education for over 1500 students in six partner schools and its flagship school, the Children’s Academy and Learning Center. The organization supports schools that help children realize their potential while driving community development and lifelong learning. Haiti Partners also provides families with home gardening kits to grow their own food.

Heart of Giving Podcast

This week’s Heart of Giving Podcast interviews Luke Mickelson, the Founder and Executive Director of Sleep in Heavenly Peace, a volunteer-driven nonprofit dedicated to building and delivering handmade, fully furnished bunk beds to needy children.

Recent Reports

• Earthwatch Institute
• Operation Serve International
• Marshall Legacy Institute

According to the latest available statistics from the IRS, in 2021 there were 1.9 million tax exempt organizations in the United States. The bulk of these, 1.4 million (72%), are tax-exempt as charities under section 501(c)(3) of the Internal Revenue Code. In fact, the actual total number of charities is higher since this IRS figure does not include houses of worship as well as small organizations (with gross revenues less than $5,000) which are both not required to apply for 501(c)(3) status in order to have charitable tax-exempt status.

These impressive totals do not provide the complete picture. As reported in the latest Independent Sector quarterly review, The Health of the U.S. Nonprofit Sector, “Historically, the nonprofit sector is the third-largest employer in the U.S. economy and grows jobs four times faster than for-profit organizations” and represents 6.6 percent of the overall workforce. This publication also reports that in the third quarter of 2022, nonprofits contributed $1.5 trillion to the economy.    

About 12 million people work in the nonprofit sector which is equivalent in size to the total number of people employed in manufacturing. This paid nonprofit workforce is further assisted by the 60.7 million people who volunteered between September 2020 and 2021, comprising 23.2 percent of the U.S. population. As estimated by AmeriCorps, this represents 4.1 billion hours with an economic value of $122.9 billion. This total number of volunteers reflects a 7 percent drop from the previous year which, in part, is due to the impact of Covid-19.

While some might think of just soup kitchens and animal shelters when asked about charities, the actual size, scope, and diversity of missions are reflected in hundreds of thousands of organizations that work tirelessly each day to address society’s needs.

Video of the Week

As part of BBB WGA’s Building Trust Video Series, BBB Wise Giving Alliance interviews Jill Reeder, Interim CEO, Pearl S Buck International (a BBB Accredited Charity) which offers opportunities for international exchange, cultural awareness, and diversity appreciation. Their international programs work with affiliate and partner agencies to deliver health care, education, and psycho-social support to children and their families. 

Heart of Giving Podcast

This week’s Heart of Giving Podcast, continues with Part 3 of its conversation about “Office Shock,” a book which reimagines the office and show how we can plan for more sustainable ways of working. Art Taylor, President & CEO, BBB Wise Giving Alliance interviews one of the book’s co-authors, Dr. Joseph Press, who addresses the architectural aspects about offices of the future.

Recent Reports

• charity:water
• Ally’s House
• Delivering Good