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As much as 15 inches of rain flooded the Dallas/Fort Worth area this week and torrential rains also extended into Louisiana and the Lower Mississippi Valley. On the heels of recent flooding that devastated eastern Kentucky and parts of Missouri several weeks ago, many areas are struggling to cope. To help those in need, BBB Wise Giving Alliance offers the following giving tips.

Crowdfunding options. Please keep in mind that while some crowdfunding sites take precautions in screening, vetting and managing postings after a tragedy, others will not. If unsure, review the posting procedures described on the crowdfunding site and also find out about transaction fees and other specifics. 

Clarity of program descriptions. Watch out for vague appeals that don’t explain the intended use of donations. Will the money be used to provide temporary shelter, food, medicines, or address other needs? Also, don’t assume that funds will be spent just as quickly as they are collected, unless the charity tells you otherwise.

Helping families directly. If you decide to contribute to a crowdfunding posting or a charity that is restricting donations to help a family, remember that such gifts restricted to help specific individual(s) are generally not deductible as charitable gifts for federal income tax purposes. See IRS Publication 526, page 7, for more on this.

New charity challenges. Be cautious about newly created charities in the wake of a disaster. Although they may have the best of intentions, they may not have the skills or connections to deliver assistance quickly. Ask if the charity has an on-the-ground presence in the impacted area(s). See if the organization’s website describes how it will carry out its recovery efforts.

Visit Give.org. Donors can check out charities by visiting BBB’s Give.org to verify if the charity meets the BBB Standards for Charity Accountability.

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Video of the Week

For this Video of the Week, we revisit a video interview with David Barringer, CEO, National Council of the U.S. Society of St. Vincent de Paul (a BBB Accredited Charity) which seeks to help millions of people each year through home visits, housing assistance, disaster relief, job training, food pantries, clothing, care for the elderly, and other charitable activities.
 

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Heart of Giving Podcast

In this week’s Heart of Giving podcast, BBB WGA interviews Cherie Harder, the President of the Trinity Forum. The Trinity Forum (www.ttf.org) works to create forums to encourage and assist national leaders in applying their faith. 

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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:

• Lupus Research Alliance
• MidwayUSA Foundation
• National Jewish Health

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.

 

For today’s Wise Giving Wednesday, we wanted to revisit a topic – the difference between government regulations and voluntary standards. In describing what the law requires of charities, some of the fundamentals include, but are not limited to, annually filing the IRS 990 financial form, registering as a soliciting charity with the applicable state government agencies, not misleading donors, not engaging in fraudulent practices and/or not misusing charitable funds to benefit charity staff and/or board members.

As a standards-based charity evaluator, however, BBB Wise Giving Alliance looks beyond the legal requirements in completing its reports on charities.  The BBB Standards for Charity Accountability, for example, encourage charities to ensure the volunteer board is active, independent and free of self-dealing, spend funds prudently and in accordance with statements made in appeals, have accurate appeals, respect donor privacy, and include specified disclosures on its website and in cause-related marketing promotions. While some of these issues overlap with legal requirements, the specific recommendations included in these standards, in many instances, call for practices that stretch beyond what the law can address.

The distinction between legal requirements and voluntary recommendations is also reflected in the language used to describe them. One complies with regulations because the law requires it, in contrast one meets a standard if one chooses to follow it.

The public expects charities “to do the right thing” and if asked, will likely indicate this means more than just meeting legal requirements. It embodies the notion of trust which we believe is an objective that is well addressed by meeting the BBB Standards for Charity Accountability.

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Video of the Week

For this Video of the Week, we revisit a Coffee with Colleagues event from 2021 that features Matthew Eshleman Chief Technology Officer of Community IT which offers IT support services for nonprofits. He discusses the current state of cybersecurity and how charities can best protect themselves.
 

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA interviews Roger Craver, a recognized expert and leader in direct response fundraising and co-founder of DonorVoice a donor relationship management firm and editor of the TheAgitator.net. He currently serves as member of the BBB Wise Giving Alliance Board of Directors.

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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:

• Aid for AIDS International
• Greater Yellowstone Coalition
• ChildFund International

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.

 

Most charities today have some type of conflict-of-interest policy that helps them identify the existence of charity transactions with a related party such as a staff or board-related firm. The existence of such a policy, while helpful, does not automatically mean the charity has automatically resolved problems that can take place in such circumstances. This is where a review of the individual circumstances becomes important as no two transactions are exactly alike. These factors include, but are not limited to, the amount of the transaction, whether the interested board member participated in the board vote on this purchase, if competitive bids were taken and whether this was a one-time or ongoing transaction.  Examples of transactions that raise a red-flag of a potential conflict are:

• An organization hires the same IT services firm for five years while the principal of that firm sits on the governing board.
• The grants approval committee of the charity’s governing board has decided that almost all of its grants will go to board member affiliated charities.
• A charity makes a significant financial loan to an executive staff member so he can make major renovations on his home.

The fifth standard in the BBB Standards for Charity Accountability calls for no transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. This standard is intended to cover related-party transactions ranging from significant charity purchases of goods or services, grants and donations to board-member affiliated charities and loans made to board or staff members. In determining if a charity meets this standard, the BBB WGA will ask the charity what steps were taken to ensure that a related-party transaction is not a conflict. In some instances, however, the transaction may be so significant that it raises concerns with this standard even if measures are taken. 

When donors place their trust in a charity, they expect the charity’s mission, not personal financial gain, to be the motivation for leadership decisions made by the board of directors and paid staff. In some ways, this is one of the core distinctions between a for-profit business and a not-for-profit organization. So, when this expectation is violated, contributors may feel betrayed or deceived.

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Video of the Week

As part of our Ukraine Relief Charity Interview Series, BBB WGA is pleased to provide an interview with Jeanne Dillner, CEO of SIGN Fracture Care International (a BBB Accredited Charity) which is engaged in relief efforts in and around Ukraine such as sending orthopaedic supplies to hospitals.
 

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA interviews Angela Williams, the President and CEO of United Way Worldwide (a BBB Accredited Charity). With more than 30 years of leadership experience in the nonprofit and corporate sectors and named to Forbes’ 2021 List of Women 50 Over 50 Creating Social Change at Scale, Angela Williams brings a long history of purpose-driven work to her new role at United Way.

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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:

• Youth Villages
• Free Wheelchair Mission
• Medical Students for Choice

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.

 

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Children will begin returning to school starting in August and continuing into September. While parents may be focusing on getting the best deals on school supplies, some may be asked to help raise money for class projects, trips and other activities not covered by existing school finances. These activities can range anywhere from selling chocolates to gift wrapping. Here are some tips for parents to consider in managing such activities:

• Set specific goals or plans before you start to raise funds. What is the total amount needed and how much time do you have to raise it?
• Make sure the school informs parents either online or in hard copy with any needed instructions about the campaign.
• Review the fundraising promotions created to make sure they accurately and adequately explain the nature of the school activities being funded.
• Identify who will be in charge. Usually, a specified parent or other volunteer will keep track of collecting and recording of donations received.
• Share information with parents and other volunteers about how much was raised.
• Appreciate the generosity of contributors by sending thank you notes to them.
• Create a feedback form that will help identify needed improvements to do even a better job next time.

There are online giving platforms that help raise money for classroom projects. A school or teacher may consider posting a request on such sites to raise money for a designated need. If so, review the site’s procedures and rules to clearly understand how your support can help. Also, visit Give.org to see if the charity meets the 20 BBB Standards for Charity Accountability.

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Video of the Week

As part of our Building Trust Video Series, we are pleased to revisit a video interview featuring Jamie Amelio, founder and CEO, Caring for Cambodia (a BBB Accredited Charity) that seeks to educate a generation of Cambodian children today, to make a difference for Cambodia’s tomorrow. CFC reports that it provides education to 6,600 students at 12 preschools, 5 primary schools, 2 junior high schools and 2 senior high schools in Siem Reap, Cambodia. Classrooms are safe, modern and technologically equipped. The organization mentors and professionally trains teaching staff and funds supplies and other tools needed to teach.
 

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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:

• Friends Without a Border
• U.S. Committee for Refugees and Immigrants
• Medical Students for Choice

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.

 

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While we encourage potential donors to access charity reports on BBB’s Give.org to verify charity trustworthiness, the content of a charity’s website is also helpful. Among other things, the presence or absence of certain materials can send a signal about the charity’s transparency, and its interest in assisting donors in making an informed choice. With this in mind, here are some things to look for when visiting charity websites.

• Access to basic facts. A charity website should have basic facts about the charity’s mission, major programs, governance and finances in an accessible area of the website. This recommended content is covered in BBB Charity Standard 17 which calls for charity websites to include the same information you would typically find in an annual report, such as a description of the charities mission and activities in the past year, financial information, and a roster of the governing board. In addition, the website should provide access to the organization’s most recently filed IRS Form 990, the annual financial form filed with the Internal Revenue Service. 
• Donor privacy. Make sure the charity’s website has a privacy policy that addresses how your personal information is being collected and used as well as what protections are in place to help secure that data. BBB Charity Standard 18 calls for certain information to appear in that policy. Keep in mind that charities may collect personal information beyond the donation form that is provided, such as through emails or other communications they might have with visitors.
• Finding financial statements. As many donors seek out information on charity finances, most charity websites make it easy to locate those details. If on the other hand, a charity website requires a little bit of hunting to find financial statements, that might be signaling a potential concern. For example, one might be cautious if the website only provides a financial summary but not the latest IRS Form 990 or (if applicable) the complete audited financial statements. Keep in mind, we also urge donors to consider much more than finances when making a giving decision. In addition, if the charity organization is a house of worship or is an affiliated entity of a house of worship, it is not required to file an IRS Form 990.
• Provide feedback. Charities want to hear from donors and generally encourage feedback on their websites. Take that opportunity to let them know what additional information you would like to see and any recommendations on how the website can be improved. They will value and appreciate your input.

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Video of the Week

As part of our Building Trust Video Series, we are pleased to revisit a video interview featuring Saleem Zaru, Executive Director, United Palestinian Appeal (a BBB Accredited Charity) that works to assist impoverished Palestinians through its four program areas: community and economic development, education, health and wellness, and outreach. The organization states that it launches its own programs and builds long-term relationships with partners in Palestinian territories, the refugee camps in Lebanon and Jordan, and the world at large.
 

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA interviews Kimberly Bryant, the Founder of Black Girls CODE, a charity dedicated to “changing the face of technology” by introducing girls of color (ages 7-17) to the field of technology and computer science with a concentration on entrepreneurial concepts. 

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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:

• Americans United for Separation of Church and State
• Marine Corps Association Foundation
• PetSmart Charities

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.

 

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Unusually high temperatures and humidity continue to blanket much of the United States. Overseas, the United Kingdom, France, Spain, Greece, and Portugal are also experiencing record-breaking heat waves. Some donors may seek to help those who are most vulnerable. BBB Wise Giving Alliance offers the following giving tips.

1. Food banks welcome your help. As reported by Feeding America (a BBB Accredited Charity) more than 38 million people, including 12 million children in the United States, are food insecure. More families may reach out to their local food banks for support during these times. The heat wave may also put stress on the volunteers available for distribution. Contact your local food bank to help identify their needs.  
2. Homeless seek relief. When temperatures approach 100 degrees, the homeless become particularly vulnerable. Homeless shelters in your area may provide cooling relief and may be in need of other basic necessities, such as bottled water and sunscreen.
3. Review heat safety advice. This week the American Red Cross (a BBB Accredited Charity) posted a list of ten heat safety tips to reduce risks of developing heat-related illnesses, especially for older people with chronic medical conditions. Although many of these tips, such as staying hydrated, are common sense, heat strokes can be life-threatening.
4. Help wildfire first responders. Dry, heated conditions sparked wildfires in North Texas. Parts of California also battle wildfires amid rising temperatures. Relief organizations such as Direct Relief (a BBB Accredited Charity) respond to wildfires each year by, among other things, providing masks, medicines and other resources to health agencies and first responders.
5. Support environmental groups addressing climate change. Visit Give.org to see if a charity addressing climate change issues meets the 20 BBB Standards for Charity Accountability. These BBB Accredited charities include: Environmental Defense Fund, Nature Conservancy and Sierra Club Foundation. 

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Video of the Week

As part of our Building Trust Video Series, we are pleased to revisit a video featuring an interview with Miki Jordan, President & CEO of Wayfinder Family Services (a BBB Accredited Charity), which offers services for individuals of all ages with vision loss and, often, additional disabilities through the organization’s early intervention, education, recreation, mental health, workforce readiness and rehabilitation services.  

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA interviews Taylor Hebble, Chief Marketing Officer, Hope for Haiti. Ms. Hebble is a brand management and social impact professional specializing in public relations, campaign strategy and community engagement.

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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:

• Dave Thomas Foundation for Adoption
• No One Left Behind
• International Fellowship of Christians and Jews

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.

 

Last week’s Wise Giving Wednesday featured the indictment by the Brooklyn District Attorney along with the New York Office of the Attorney General of a man that allegedly created dozens of fraudulent charities. As part of this scheme, the individual allegedly applied for and received charitable tax-exempt status from the IRS using Form 1023-EZ.  This shorter version of the application for tax-exempt status (3 pages instead of the 28-pages for the regular Form 1023) was initially introduced in 2014 and is used by smaller charities with annual incomes of $50,000 or less. While the initial intention for this EZ version was to lessen application challenges for smaller charities, reduce a backlog of cases by the IRS, and address political controversies, it also received early criticism that it might lead to potential additional abuse and fraud. Although it may be difficult to identify how prevalent such problems are with the 1023-EZ application, it may be helpful to view this IRS issue with a broader lens.

As noted in the IRS Compliance Guide for 501(c)(3) Public Charities, the focus is on explaining how charities can comply with federal tax law to maintain their tax-exempt status. Although some turn to the Internal Revenue Service when problems emerge with charitable organizations, this agency was never established to serve in this overarching regulatory role. Also, the fact that an organization has received charitable tax-exempt status, does not mean that the IRS approves, endorses or recommends the charity to potential donors. Rather, it demonstrates that they have filed the appropriate application and, when required, annual financial information, to be exempt from paying federal income tax on the revenue it receives. In turn, donors can receive a tax deduction for contributions made to the organization. In terms of potential abuse, the IRS does look into such issues as charity transactions with related parties, unreasonable compensation, and other excess benefit transactions.

For the most part, state charity regulators (such as state offices of the Attorneys General and the Secretaries of State) serve as the primary regulators of charities. The majority of states require charities to annually register and file financial information if they intend to solicit for charitable donations in that state. And, they are most likely to take action against charities found violating the duties of obedience, loyalty and care in how they manage the assets of the organization. When identified, states also can act on misleading appeals and/or fundraising campaigns that are not properly administered. But, states are also quick to point out that registration with a state agency does not constitute or imply endorsement, approval or recommendation by that state.

As a standards-based charity evaluator, however, BBB Wise Giving Alliance looks beyond the legal requirements in completing its reports on charities. While some of these issues in the BBB Standards for Charity Accountability overlap with legal requirements, the specific recommendations included in these standards, in many instances, call for practices that stretch beyond what the law can address. The distinction between legal requirements and voluntary recommendations is also reflected in the language used to describe them. One complies with regulations because the law requires it, in contrast one meets a standard if one chooses to follow it. In some ways, BBB Wise Giving Alliance seeks to help fill the trust gap between what charities are required to do by law and what the public expects them to do as good stewards of their generosity.

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Video of the Week

This week’s Video of the Week revisits a previous interview with Kim Callinan, President & CEO of Compassion & Choices (a BBB Accredited Charity) which works “to improve care, expand options and empower everyone to chart their end-of-life journey.” The organization works across the nation in communities, state legislatures, Congress, courts and medical settings to educate the public about the importance of documenting end-of-life values and priorities and about the full range of available options.
 

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA interviews Elizabeth Clay Roy. Elizabeth is the CEO of Generation Citizen, which partners with schools to provide 6th-12th grade students with the knowledge and skills they need to actively participate in democracy.

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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 Kidney Fund
• Starlight Children’s Foundation
• Heartbeat International

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.