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  • Wise Giving Wednesday: New York Man Indicted for Fraudulent Appeals

    Wise Giving Wednesday: New York Man Indicted for Fraudulent Appeals

     

    A man from Staten Island, New York was recently indicted by the New York Attorney General’s office “…with grand larceny and related charges for allegedly forming 23 fraudulent charitable entities and collecting at least $152,000 in donations that were never put to any charitable purpose. Many of the charities included the words ‘American Cancer Society’ or ‘United Way’ with added qualifying language to allegedly mislead potential donors.”  These entities had no affiliation with these well-known charitable organizations. In addition, as noted in a July 3rd front page article in The New York Times, this individual allegedly applied for and received 501(c)(3) charitable tax-exempt status from the Internal Revenue Service.

    As these circumstances underscore the need for donors to take active measures to avoid being taken, BBB Wise Giving Alliance offers the following tips:

    • Watch out for cases of mistaken identity. Look at the name carefully. The group soliciting you may not be the one you have in mind.
    • Visit the charity’s website. Go directly to the charity’s website to help identify the organization, verify its physical address, and find out more about its activities, finances, and accomplishments. If the charity name implies or states it is a local affiliate of a larger organization, visit the website of the national office of that entity to confirm its affiliation.  
    • Be wary of excessive pressure to donate. Watch out for appeals that demand an on-the-spot gift decision. This might be a ruse to get you to contribute before you find out more about the group.
    • Is the charity registered with government agencies? About 40 of the 50 states in the U.S. require soliciting charities to register with a state government agency such as the office of the Attorney General or Secretary of State. In Canada, visit the charity registration page at the Canada Revenue Agency.
    • Visit Give.org.  Visit the charity reports on Give.org and at your BBB to verify if a charity meets the BBB Standards for Charity Accountability.

    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a video featuring Lisa Gurwitch, President and CEO of Delivering Good, a BBB Accredited Charity that provides donated essential items such as clothing, books, home goods and toys to serve needy children, families and individuals in all 50 states.
     

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB WGA interviews Dominic Kalms, the CEO and Co-Founder of B Generous, a platform that helps individuals donate to charitable organizations by enabling them to pay over time without any interest or fees. 

    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:

    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.

  • Wise Giving Wednesday: 2021 Giving Figures and 2022 Cautions

    Wise Giving Wednesday: 2021 Giving Figures and 2022 Cautions

     

    The 2022 edition of the Giving USA Report was published on June 27, 2022, by the Giving USA Foundation and written by the Indiana University Lilly Family School of Philanthropy at IUPUI. Preliminary figures released last week by Giving USA showed that donations in 2021 totaled $484.85 billion which was 4% higher than the previous 2020 total of $466 billion but, after adjusting for inflation, contributions actually went down by 0.7%. Giving by individuals, including bequests, comprised 77% of the 2021 total followed by foundations at 19%, and corporations 4%. Wealthy donors represented a significant part of giving in 2021.  As reported in Barron’s, 10 donors gave away $15 billion last year.

    Here are some highlights from the Giving USA Report, which show some changes between 2020 and 2021 after adjusting for inflation:

    • Total giving by individuals remained relatively flat at a 0.2 percent increase.
    • Giving to public society benefit organizations grew 17.9 percent in 2021.
    • Giving to arts, culture and humanities grew 21.8 percent. The big increase for arts and culture represented a return to previous levels after a significant cutback that took place in 2020.
    • Giving to environmental and animal organizations increased 6.1 percent.

    The Chronicle of Philanthropy notes that an April 2002 an online survey completed by a Texas nonprofit consulting firm reports that 24 percent of U.S. donors who gave more than $20 to charity in the past year said they intend to give less in 2022 and that 63 percent will be more cautious in their 2021 giving. Some attribute these attitudes to worries about inflation and the economy. This contrasts with an alternative survey result in the UK which claims that 46 percent plan on increasing their charitable donations during 2022.

    It is difficult to predict with certainty how donations will fare in 2022. No matter the result, however, we still urge donors to check out charities before they donate and visit Give.org to verify if the organization meets the 20 BBB Standards for Charity Accountability.

    Video of the Week

    As part of our Building Trust Video series, we are pleased to revisit a video interview of Simon Davies, Executive Director, Teen Cancer America (a BBB Accredited Charity) which works to empower and improve the lives of young people with cancer. The organization reports that it creates youth-centered ecosystems that support young people with cancer, their families, and healthcare professionals. 
     

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, we close out Pride Month with an interview with Brandon Wolf, Press Secretary, Equality Florida (a BBB Accredited Charity.) Mr. Wolf is a nationally recognized LGBTQ civil rights advocate and a survivor of the 2016 shooting at the Pulse Nightclub. Equality Florida is the educational arm of a civil rights organization dedicated to ending discrimination based on sexual orientation and gender identity.

    Recent Reports

    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.

  • Wise Giving Wednesday – Alzheimer’s and Brain Awareness Month

    Wise Giving Wednesday – Alzheimer’s and Brain Awareness Month

     

    As June is designated as Alzheimer’s and Brain Awareness Month, we thought it would be helpful to dedicate this week’s Wise Giving Wednesday to bring more attention to Alzheimer’s and other diseases and conditions impacting the brain. While Alzheimer’s is often associated with older people, a June 20, 2022 article published by the Harvard Medical School points out that Alzheimer’s disease can develop in people under 65. As stated by Harvard’s Dr. Andrew E. Budson, “Of the more than 55 million people living with dementia worldwide, approximately 60% to 70% of them have Alzheimer’s disease. And of those 33 to 38.5 million people with Alzheimer’s disease, memory loss or other symptoms began before age 65 in 10% of them.”

    Also, keep in mind that there are a number of veterans and military service organizations that address brain related issues. Examples are veterans’ groups such as Wounded Warrior Project and Disabled American Veterans that address Post-Traumatic Stress Disorder (PTSD) which can cause the brain to “be stuck in danger mode” and impact thinking and memory.

    The National Institute of Aging which is affiliated with the National Institutes of Health has a website that identifies 11 Myths About Alzheimer’s Disease. See the article for the full list, but here are some selected excerpts:

    1. Alzheimer’s Disease and dementia are not the same thing.  Dementia refers to impaired memory thinking reasoning and behavior, Alzheimer’s is just one type of dementia.
    2. Just because a biological parent has/had Alzheimer’s does not necessarily mean their children will develop it. A person’s chance of developing Alzheimer’s, however, is higher if they have certain genetic mutations or variations that can be passed down from a parent.
    3. Forgetting things does not mean you have Alzheimer’s. Even though memory problems are typically one of the first signs of Alzheimer’s, not all memory problems mean a person has the disease. Some forgetfulness is a normal part of aging. Of course, see a physician if memory changes are of concern.

    For those seeking BBB Accredited Charities (i.e., organizations that meet the 20 BBB Standards for Charity Accountability) that address Alzheimer’s and/or Brain Awareness issues, here are some to consider. Keep in mind that as organizations address these issues in different ways, we encourage potential donors to review the program descriptions appearing on their websites.

    Alzheimer’s Association

    American Brain Foundation

    Brain & Behavior Research Foundation / NARSAD

    BrightFocus Foundation

    Cure Alzheimer’s Fund

    Disabled American Veterans

    PTSD Foundation of America

    Wounded Warrior Project

    Video of the Week

    As part of the Building Trust Video Series, we interview Bridget Kesner, Director of Philanthropy, Ronald McDonald House Charities of Eastern Wisconsin (a BBB Accredited Charity). This organization works to be a home away from home for families seeking medical care for seriously ill or injured children at partner hospitals.
     

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, we chat with Lieutenant General James B. Laster, USMC (Ret), President and CEO, Marine Toys for Tots Foundation (a BBB Accredited Charity) about the work being done by Toys for Tots to raise funds to provide toys for needy children.

    Recent Reports

    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.

  • Wise Giving Wednesday: Recognizing Different Donor Experiences

    Wise Giving Wednesday: Recognizing Different Donor Experiences

     

    One year ago, Juneteenth became a federal holiday commemorating the emancipation of enslaved African Americans in the U.S. With its roots on the day marking the end of slavery, this federal holiday invites us to be thoughtful about diversity, equity, and inclusion in our society and sector more broadly.

    Our recently released Give.org Special Donor Trust Report: Diversity, Equity and Inclusion (DEI) explored whether the donating public values DEI in charities. The report showed a complex picture, with some enthusiasm around DEI and more apathy than some would like to see. Still, the report is significant because it introduces the voice of a spectrum of everyday givers – who are the backbone of a healthy and pluralistic charitable sector.

    One of our survey questions asked participants whether they heard about a specific charity having a lack of diversity, equity, or inclusion during the past year. Overall, 22% of respondents said they had. However, younger respondents, people of color, LGBTQ+ participants, and people identifying as Muslim, Mormon, or Jewish were significantly more likely to say that they heard about a specific charity lacking DEI. Specifically, 40% of Gen Zers, 33% of African Americans, 65% of Pansexual participants, and 63% of Muslim participants reported hearing about lack of DEI at a specific charity.  Younger respondents, people of color, and LGBTQ+ participants are also more likely to report positive associations related to a charity having a diverse, equitable and inclusive board and staff; to place high importance in representation on a charity’s board and staff; and to say that demographic information reported by the charity would be “very useful. For a quick look, we invite you to see our infographics about how DEI influences individual giving and how different demographic groups differ in their DEI preferences.

    Recognizing different donor experiences is an important first step in reaching a diverse set of donors and speaking to their distinct preferences.

    Video of the Week

    As part of the Building Trust Video Series, we interview Laura Baerwolf, Chief Operating Officer of the Mona Foundation (a BBB Accredited Charity). This organization works to support grassroots educational initiatives that provide education to all children, increase opportunities for women and girls and emphasize service to the community.
     

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, we look back and explore some of our past episodes to find out what motivated some of our esteemed guests to embark on their philanthropic journey and the early experiences that made a mark and inspired them along the way.
  • Wise Giving Wednesday: How Do Donors Feel about DEI?

    Wise Giving Wednesday: How Do Donors Feel about DEI?

     

    On Monday, June 6th, BBB Wise Giving Alliance released the Give.org Special Donor Trust Report: Diversity, Equity and Inclusion (DEI). This report provides the results of a survey of 2,100 adults in the U.S. and more than 1,000 in Canada that explores whether the donating public values DEI in charities, whether DEI is a meaningful consideration in their giving process and identifies how demographic groups differ in their responses to DEI issues.

    As we start to hear reactions to the report, some express optimism in learning that most participants (54%) assume that having a diverse, equitable, and inclusive board and staff has a positive effect on how trustworthy the charity is. Others react to the findings with concern for the limited consideration given to diversity, equity, and inclusion in the donating process. Those interested in a quick read, might appreciate the coverage by The Chronicle of Philanthropy or The NonProfit Times.

    For those interested in insights by sector leaders, we invite you to read the contributed responses submitted by Franklin Guerrero (Vice President of Philanthropy , Major Gifts and Gift Planning at AARP Foundation), Jon Bergdoll (Associate Director of Data Partnerships and Lead Statistician for Giving USA), Afshan Paarlberg (Visiting Assistant Professor, Muslim Philanthropy Initiative at IU Lilly Family School of Philanthropy), Michael Martin (President and CEO, Evangelical Council for Financial Accountability) and Erwin de Leon (Chief Diversity Officer, School of Professional Studies and Lecturer in Discipline, Nonprofit Management Program at Columbia University in the City of New York).

    For example, Franklin Guerrero brings forth that philanthropy “should be that fiercely independent, innovative, and equalizing force that the government and private sector can’t forge in response to the constraints of democracy, taxation, or profits.” In turn, Jon Bergdoll reminds us that different demographic groups are likely to have different definitions for terms like “discrimination” or “lack of diversity, equity, and inclusion.” In his previous work, Jon found that “younger people and African Americans (along with single women) typically had more expansive definitions of racial justice causes.”

    We are impressed by the diversity and depth of these reactions and hope you are too.

    Video of the Week

    As part of our Building Trust Series, we interview Brandon Wolf, Press Secretary of Equality Florida (a BBB Accredited Charity). This organization works to end discrimination based on sexual orientation, gender identity and expression, sex, race/ethnicity, national origin, and socioeconomic status.
     

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB Wise Giving Alliance interviews Elvia Castro, BBB WGA’s Associate Director, Charity Evaluation. She discusses the Give.org Special Donor Trust Report: Diversity, Equity, and Inclusion, which is described above.

    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:

    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.

  • BBB’s Give.org Study: 2 in 5 people would not donate to a charity that tolerates discrimination

    BBB’s Give.org Study: 2 in 5 people would not donate to a charity that tolerates discrimination

    Arlington, VA (June 06, 2022) – According to new research from BBB’s Give.org, 41% say they would not donate to a charity they supported in the past upon learning that the charity’s culture tolerates discrimination against people served. By comparison, 34% would not donate to charities using culturally insensitive images and language, and 17% would not donate upon learning the charity’s board is not diverse.

    The standards-based, charity-evaluation group today released the Give.org Special Donor Trust Report: Diversity, Equity and Inclusion (DEI). The report, a survey of more than 2,100 adults in the United States and more than 1,000 adults in Canada, explores whether donors value DEI in charities, and whether DEI is a meaningful consideration in the giving process among the general public and different demographic groups.

    “A lot has been said about diversity, equity, and inclusion, but not from the perspective of individual donors” said H. Art Taylor, President and CEO of BBB’s Give.org, “Our survey shows that most people assume a diverse, equitable, and inclusive charity is more trustworthy, better able to serve its constituents, and incorporates broader perspectives. While each charity’s DEI journey is complex and unique, the pursuit of a diverse, equitable, and inclusive charity is part of an organization’s strategy to be ethical, effective, and trustworthy.”

    Other report highlights include:

    • 54% of U.S. respondents assume that having a diverse, equitable, and inclusive board and staff has a positive effect on how trustworthy the charity is.
    • Close to 20% of participants say that representation (of race and ethnicity, disability status, gender identity, sexual orientation, and religious identity) in the community served by a charity is “highly important” (rated as 9 or 10 on a 10-point scale) in their giving decision. On the flip side, between 25 and 30% report attributing low importance (rated as 1 or 2 on a 10-point scale).
    • One-third of participants consider demographic information reported by the charity about people served to be “very useful” in their giving process.
    • Younger respondents, people of color, and LGBTQ+ participants are more likely to (a) report hearing about a specific charity having a lack of DEI, (b) report positive associations related to a charity having a diverse, equitable and inclusive board and staff, (c) place high importance in representation on a charity’s board and staff, and (d) say that demographic information reported by the charity would be “very useful.

    For a free copy of the report, go to Give.org/DonorTrust.

    BBB’s Give.org urges donors to give thoughtfully by taking the time to investigate charities before making a donation and to visit Give.org to verify if a charity meets the 20 BBB Standards for Charity Accountability.

    ABOUT BBB WISE GIVING ALLIANCE: BBB Wise Giving Alliance (BBB’s Give.org) is a standards-based charity evaluator that seeks to verify the trustworthiness of nationally soliciting charities by completing rigorous evaluations based on 20 holistic standards that address charity governance, results reporting, finances, fundraising, appeal accuracy and other issues. National charity reports are produced by BBB’s Give.org and local charity reports are produced by local Better Business Bureaus – all reports are available at Give.org.

    ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for over 110 years. In 2021, people turned to BBB more than 200 million times for BBB Business Profiles on 6.3 million businesses and Charity Reports on 12,000 charities, for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada, and Mexico.

    MEDIA CONTACTS: For more information, journalists should contact Elvia Castro (703-247-9322 or ecastro@give.org)

  • Wise Giving Wednesday: Ransomware Demands Acts of Charity

    Wise Giving Wednesday: Ransomware Demands Acts of Charity

     

    Most everyone has heard about ransomware attacks where a scammer uses encryption software to lock computers and data and then demand payment via cryptocurrency or other means before they release the data. Such attacks can happen in a number of ways (for example, clicking on a link in a fraudulent email) and then spread to other computers on the same network.  Unfortunately, a new version of this swindle has emerged, this time with a charitable theme. Various cybersecurity services and news sources are reporting something being called “Goodwill Ransomware.” In this circumstance, the ransomware victim is being told their data will be locked until three acts of charity are completed: (1) provide new clothes to needy people, (2) treat five poor children with a meal at specified fast food restaurants, and (3) pay for someone who can’t afford needed medical assistance. For all three acts, the victim is asked to document and record photos and videos and place them on social media.

    While no victims of this ransomware approach have been reported in media accounts, it is extremely sad and offensive that anyone would tarnish philanthropy by holding personal data hostage to complete specified tasks. BBB Wise Giving Alliance warns that people should still be on the lookout and not succumb to such ransomware demands to unlock their data. It is also inappropriate to encourage strangers to approach children or to publish photos or videos of people receiving charitable assistance without their expressed permission.

    BBB offers various tips to help prevent ransomware attacks. Among other things, individuals should make sure that they are periodically updating their software systems on their laptops and other computers, not clicking on links from unfamiliar sources, and conducting regular system backups. Also, the FBI has provided tips on ransomware and encourages victims to not pay a ransom and to report such acts to their Internet Crime Complaint Center also known as IC3.

    Video of the Week

    In this episode of our Building Trust Series, BBB Wise Giving Alliance interviews Jeanne Dillner, CEO of SIGN Fracture Care International (a BBB Accredited Charity). This organization works to build orthopedic capacity in developing countries by providing orthopedic training and implants.
     

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB Wise Giving Alliance interviews Betsy Peterson and Olivia Henry Harris from the Council of Michigan Foundations. They discuss their programs aimed at educating younger people on the power of giving and teaching them to be grantmakers.

    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:

    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.

  • Wise Giving Wednesday: Helping Victims of Mass Shootings at Buffalo Supermarket and at Uvalde, Texas Elementary School

    Wise Giving Wednesday: Helping Victims of Mass Shootings at Buffalo Supermarket and at Uvalde, Texas Elementary School

     

    Last week, BBB Wise Giving Alliance shared giving tips for those seeking to help the families of those killed or injured in the May 14th Buffalo supermarket shooting. As we were preparing this copy, another mass shooting tragedy took place on May 24th at an elementary school in Uvalde, Texas. The advice we offer for helping Uvalde victims is the same as for Buffalo. Don’t assume everyone raising funds using the names and photos of victims has received permission from their families to do so. Check out recent announcements to avoid duplication of effort. Also, interested donors will quickly see more organized efforts created to address immediate and other needs – so the first solicitation you see may not be the best opportunity to help. See this link for more guidance about avoiding questionable appeals.

    For Buffalo, the immediate philanthropy spotlight was understandably on the victims shot at the Tops market. The Buffalo area where this occurred, however, also was significantly impacted. We thought it would be helpful to identify how the Buffalo community responded to show its support for the East Side area where the supermarket is located. We reached out to the Better Business Bureau of Upstate New York and are grateful for their assistance in helping to compile the following information.

    World Central Kitchen
    As reported on NPR, the Tops supermarket opened in July 2003 and was the first major supermarket to open in that East Side community which is predominantly African American. It has since been closed after the shooting pending the completion of the police investigation and addressing needed repairs. In the meantime, this has left a significant gap in meeting the needs of area residents. Several days after the Buffalo shooting, the World Central Kitchen (which is currently active in helping in Ukraine) set up a nearby area to provide hot meals, snacks, drinks, fresh produce and personal hygiene products. Local businesses and restaurants quickly offered donations to help support this distribution effort.

    Bills, Sabres and Bandits
    Local sports teams also got involved when members of the Buffalo Bills football team, the Sabres hockey team and the Bandits lacrosse team came by to help give out flowers, meals and show their support. Also, the Buffalo Bills along with the NFL announced it will make a $400,000 donation to Buffalo charities.

    Food Banks
    Buffalo area food banks set up drives near the Tops location on Jefferson Avenue to collect donations of food, diapers, and other essentials. One group, Buffalo Community Fridges, was passing out bread, milk and eggs and other items out of refrigerated trucks.

    Community Foundation
    The Community Foundation of Greater Buffalo also announced it will be engaged in a collaborative effort with various charities to form the “Buffalo Together Community Response Fund” to address short and long-term needs emerging as a result of this shooting tragedy.

    For Buffalo, the community came together to show support, demonstrate caring and send an inspiring message of recovery. We hope the same for Uvalde, Texas and will continue to monitor these situations as giving circumstances evolve. 

    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a video featuring an interview with Mabel Valdivia, Executive Director of Fonkoze USA, a BBB Accredited Charity that provides funds for microfinance loans to its partners in Haiti.  The majority of loan recipients are women who use the funds to start or expand a small business that enables them to earn an income and feed their families.

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB Wise Giving Alliance interviews Frank Crump, the Founder, President, and CEO of UPI Loan Fund which provides loans and behavioral financial wellness services to underserved communities.

    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:

    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.

  • Wise Giving Wednesday: Donating to Buffalo Shooting Victims

    Wise Giving Wednesday: Donating to Buffalo Shooting Victims

     

    To hear about any mass shooting is emotionally devastating but generates additional grief when the victims have been targeted out of racism. What happened in a Buffalo, New York supermarket this past weekend is heart wrenching and brings many of us to tears. At the same time, we also are motivated to help the families of the victims of those who were killed or injured. To help people make informed giving decisions, we encourage potential donors to be aware of the different circumstances that often emerge in tragedy-related philanthropy.

    Does the appeal respect victims and their families?

    Charitable organizations or crowdfunding postings raising funds should get 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.

    How will donations be used?

    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 collected funds quickly collected after a tragedy will be distributed or spent just as quickly.

    Advocacy Organizations

    Tragedies that involve violent acts with firearms can also generate requests from a variety of advocacy organizations that address gun use. Donors can support these efforts as well but note that some of these advocacy groups are not tax exempt as charities. Also, watch out for newly created advocacy groups that will be difficult to check out.

    Tax Deductibility

    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.  

    Check out recent announcements to avoid duplication of effort.

    Be mindful of public announcements that identify assistance being provided to victim families to help avoid donating to duplicative efforts.

    Crowdfunding advice

    Crowdfunding has become so popular that 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 unsure, review the posting procedures described on the crowdfunding site and also find out about transaction fees and other specifics. 

    As always, we remind donors to check out charities by visiting Give.org to verify if the charity meets the BBB Standards for Charity Accountability.

    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a video featuring an interview with Dr. Neal D. Barnard, President of Physicians Committee for Responsible Medicine (a BBB Accredited Charity) an organization that reports it combines its more than 12,000 physicians with its 175,000 members to promote nutritional interventions to prevent and combat chronic disease and advocate for technological advances in medical research and toxicology to replace the use of animals. Its primary care clinic, the Barnard Medical Center, specializes in diet-related chronic disease and integrates nutrition counseling into patient treatment protocols. The organization also works with governments, academics, corporations, and other stakeholders to devise alternatives to animal testing, press for global adoption of these methods, and train scientists in how to use them.

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB Wise Giving Alliance interviews Natalie Jaresko, former Ukraine Finance Minister. She discusses the outpouring of philanthropic support during the ongoing humanitarian crisis.

    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:

    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.

  • Wise Giving Wednesday: The Importance of Audited Financial Statements

    Wise Giving Wednesday: The Importance of Audited Financial Statements

     

    As a standards-based charity evaluator, BBB Wise Giving Alliance recognizes the value of standards and guidelines in providing a useful reference point and helping to encourage good practices. This is one of the reasons that the financial section of the BBB Standards for Charity Accountability prefers to use a charity’s audited financial statements as opposed to the IRS Form 990.  Audited financial statements are prepared in accordance with GAAP (generally accepted accounting principles) which are the accounting standards established in the United States by the Financial Accounting Standards Board. In turn, the auditor’s opinion attached to audited financial statements will identify any material aberration from GAAP so that users are aware of this difference when reviewing the financial statement contents. 

    The IRS Form 990, the annual financial form that charities file with the IRS, is not intended to provide a financial presentation that is consistent with GAAP. As a result, in some instances, there can be significant differences between the IRS Form 990 and a charity’s audited financial statement. As two examples, audited statements include unrealized gains or losses on investments as well as, under certain conditions, donated services, while the IRS Form 990 does not permit these items to be included in revenues or expenses. When you see a charity financial reference in media, on a website, or in a fundraising letter, look closely to see if the source is clearly identified so that you know whether or not the summary is based on GAAP financial information.

    BBB Charity Standard 11, requires charities to have audited financial statements when total income exceeds $1 million. For charities whose annual gross income is less than $1 million, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is adequate as long as it includes the same elements (i.e., statement of financial position, statement of activities, statement of cash flows, notes, etc.) as the audited financial statements. If this is not available for such smaller charities, then the IRS Form 990 or 990-EZ Form would be sufficient.

    Video of the Week

    As part of our Ukraine Relief Charity Interview series, BBB Wise Giving Alliance speaks to Commissioner Kenneth Hodder, National Commander of the Salvation Army talks about the organization’s relief efforts in and around Ukraine. 

    Heart of Giving Podcast

    In this week’s Heart of Giving Podcast, BBB Wise Giving Alliance goes back to its archives to collect excerpts from talks with guests who are contributing or have contributed to the education of young people. Through these clips, BBB WGA seeks to demonstrate the power of philanthropy in assisting teachers. 

    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:

    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.