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As the Russian invasion of Ukraine has begun, concerns grow about current and potential emergency needs of the Ukraine people. Generous donors want to help by supporting charities that are raising funds for assistance. BBB Wise Giving Alliance offers the following tips for donors to consider along with a list of BBB Accredited Charities that have announced Ukraine-related activities or plans on their websites.

We certainly encourage generosity to help the people in Ukraine but caution donors to avoid questionable appeals by keeping the following tips in mind:

• Can the charity get to the impacted area? Not all relief organizations will be positioned to provide relief quickly. See if the charity already has a presence in Ukraine.
• Should you send clothing and food? Local drives to collect clothing and food to send overseas may not be practical as the logistics and timing to deliver and disperse such items will be challenging. Relief organizations are better equipped to obtain what is needed, distribute it effectively and avoid duplication of effort.
• Does the relief charity meet BBB Charity Standards?  You can verify a charity’s trustworthiness by viewing an evaluative report completed by BBB Wise Giving Alliance.  See the list provided below of charities that that are soliciting for relief assistance for Ukraine and that also meet the BBB Standards for Charity Accountability.
• Is the charity experienced in providing emergency relief? Experienced disaster relief charities are the best bet to help deliver aid as soon as possible. New entrants may have difficulty in following through even if they have the best of intentions.
• Are you considering crowdfunding appeals? If engaging in crowdfunding, it is safest to give to someone you personally know and trust, and review the platform’s policies regarding fees and distribution of collected funds. If the crowdfunding request is from a charity, check out the group by visiting Give.org. Keep in mind that some crowdfunding sites do very little vetting of individuals or organizations that decide to post for relief assistance. Sites that take security measures will usually provide descriptions of these procedures.
• Does the appeal make exaggerated financial claims such as “100% will be spent on relief.” Charities have fundraising and administrative expenses. Any charity claiming otherwise is potentially misleading the donating public. Even a credit card donation will have a processing fee.

The following nationally-soliciting charities are BBB Accredited (i.e., they meet the 20 BBB Standards for Charity Accountability).  Their respective websites indicate that they are either currently raising funds for assistance efforts in Ukraine or preparing for needs that could arise if conflict results in population displacement.

Alight  |   Ukraine Relief Activities
American Jewish Joint Distribution Committee  |  Ukraine Relief Activities
American Red Cross | Ukraine Related Activities
Americares Foundation  |  Ukraine Relief Activities
Catholic Relief Services  |  Ukraine Relief Activities
CHC: Creating Healthier Communities  |  Ukraine Relief Activities
Direct Relief  |  Ukraine Relief Activities
Episcopal Relief & Development  |  Ukraine Relief Activities
Global Communities  |   Ukraine Relief Activities
GlobalGiving  |  Ukraine Relief Activities
Hadassah | Ukraine Relief Activities
Heart to Heart International  |  Ukraine Relief Activities
Humane Society International | Ukraine Related Activities
International Medical Corps  |  Ukraine Relief Activities
International Rescue Committee  |  Ukraine Relief Activities
MAP International  |  Ukraine Relief Activities
Matthew 25: Ministries  |  Ukraine Relief Activities
Medical Teams International  |  Ukraine Relief Activities
Mennonite Central Committee  |  Ukraine Relief Activities
Mercy Corps  |  Ukraine Relief Activities
Operation USA |  Ukraine Relief Activities
Plan International USA |  Ukraine Relief Activities
Salvation Army  |  Ukraine Relief Activities
Save the Children  |  Ukraine Relief Activities
SOS Children’s Villages – USA  l  Ukraine Relief Activities
United Methodist Committee on Relief  |  Ukraine Relief Activities
United States Association for UNHCR  |  Ukraine Relief Activities
World Hope International |  Ukraine Relief Activities
World Vision|  Ukraine Relief Activities

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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 Kari Rosbeck, President and CEO, Tuberous Sclerosis Alliance (also known as the National Tuberous Sclerosis Association.) This is a BBB Accredited Charity that supports research into the diagnosis, cause, management, and cure of tuberous sclerosis complex (TSC). The organization also provides individuals with TSC and their families with direct access to information, resources, and specialists experienced in the diagnosis, treatment and management of TSC.
 

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA’s President and CEO, Art Taylor, interviews Barbara O’Reilly, Principal, Windmill Hill Consulting and discusses fundraising strategies, specifically how an organization can go about selecting a consultant to help with their fundraising efforts. 

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. 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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This is the third in our series on addressing the three fundamental charity board responsibilities. Previously, we covered the duty of loyalty and the duty of care. This time we focus on the duty of obedience. To some, this responsibility covers just compliance with laws and regulations – but it’s more than that. It also seeks to ensure that the board is following its articles of incorporation, bylaws, and other governance documents. These documents usually identify the charity’s mission and charge the board to devote resources for this purpose. As the board makes decisions on proposed activities, it should periodically verify that they adhere to its mission and purpose. Charities can sometimes inadvertently get sidetracked even with the best of intentions. The duty of obedience, if followed, can help in making any necessary adjustments to keep the organization on track towards its goals.

In terms of following laws and regulations, it is important for charity boards to be familiar with annual financial filing requirements, such as completion of the IRS Form 990 and complying with state government registration regulations. About 40 of the 50 states require charities to register annually by completing forms, submitting financial information, and paying applicable fees. Smaller charities sometimes make the mistake of believing that they only need to register in the state where they are located. Registration, however, is generally required to be filed for each state where the charity solicits funds. So, if they solicit donors located in neighboring states, registration will be required with those neighboring states’ government agencies as well (usually a division of the state’s office of the attorney general or secretary of state.) Keep in mind that state regulations vary. While most states will require the charity to file a copy of its annual IRS Form 990 financial report, some states also require an audited financial statement when total contributions exceed a certain level. The audit threshold is different from state to state. For example, some require an audit when contributions total over $500,000, others have a $1,000,000 threshold.

If the charity hires an outside third-party company to raise funds on their behalf or to advise them about raising funds, those entities will generally also need to annually complete applicable documents with state government agencies. It would be wise for charity boards to verify that any hired outside fundraising company is adhering to these laws as well.

Regarding the voluntary BBB Standards for Charity Accountability, BBB Charity Standard 1 addresses board oversight of the charity’s operations and staff. As explained in the implementation guidance to this standard, one of its requirements is that the charity’s board should ensure that the organization complies with applicable government charity regulation. BBB Charity Standard 11 requires charities to have audited financial statements when total annual gross income exceeds $1 million.

For additional guidance on this subject see the following board responsibility publications produced by a number Attorney General offices such as Illinois, Massachusetts, New Hampshire. New York, and Oregon. Additional recommendations about governance and financial issues can be found in the text and implementation descriptions of the 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 featuring 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.

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA interviews Tom Bognanno, President & CEO of CHC: Creating Healthier Communities. CHC brings communities, nonprofits, and businesses together around a shared commitment to better health and wellbeing.

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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:

• Optimist International Foundation
• Sudan Relief Fund
• Xerces Society for Invertebrate Conservation

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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We continue our series on the three fundamental charity board responsibilities. Last week we discussed issues related to the duty of loyalty. This time we would like to focus on the duty of care. While many consider the duty of care to cover the wise use of the charity’s resources, it also covers such activities as attending board meetings, reviewing the performance of the CEO, reading the charity’s materials, and engaging in budgeting and strategic planning activities. These principles are covered by BBB Charity Standard 1 which addresses board oversight.

BBB Charity Standard 1 requires a board of directors that provides adequate oversight of the charity’s operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO’s performance, evidence of disbursement controls such as board approval of the budget, fundraising practices, regular monitoring of a conflict-of-interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

BBB Charity Standards 6 and 7 address results reporting and, in part, seek to ensure that a charity has a board policy of conducting some type of effectiveness (or impact) assessment at least every two years. A written report outlining this assessment and recommendations for future actions should be prepared and shared with the board for its approval. In other words, these standards recommend that charities set defined, measurable goals and objectives, put a process in place to evaluate the success and impact of its programming, and report on the organization’s progress.

In terms of charity finances, BBB Charity Standards 8 and 9 address financial ratios. Standard 8 calls for charities to spend at least 65 percent of its total expenses on program service activities, and Standard 9 calls for charities to spend no more than 35% of contributions on fundraising. Financial oversight is also addressed in other BBB Charity Standards that call for annual financial statements to be prepared, to have an accurate report of the charity expenses in these statements, and to have a board-approved annual budget for the current fiscal year.

Of the three fundamental board responsibilities, the duty of care responsibility of board members probably takes up the most time to carry out and complete. For additional guidance on this subject see the following board responsibility publications produced by a number Attorney General offices such as Illinois, Massachusetts, New Hampshire. New York, and Oregon.

Additional guidance and recommendations on the BBB Charity Standards cited above can be found in the implementation descriptions of the BBB Standards for Charity Accountability.

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Video of the Week

This week we are pleased to revisit a video interview with Beth MacNairn, Deputy Director, Health Volunteers Overseas (a BBB Accredited Charity) that works to address the global health workforce crisis by implementing programs that meet the needs of the host country and institutions, are sustainable and build local capacity. The organization states that its volunteers provide clinical and didactic education through continuing education and degree-granting programs, faculty and staff training, mentoring, education material development, and professional collaboration.

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Heart of Giving Podcast

In this week’s Heart of Giving Podcast, BBB WGA interviews Michael Clinton, the author of the bestseller “Roar: into the second half of your life (before it’s too late).” Michael discusses his book and explains how a person can take meaningful actions to lead a purposeful life.

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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:

• Foundation Fighting Blindness
• Gift of Adoption Fund
• National Ataxia 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.

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Charity governing boards are an essential part of an organization’s oversight practices. Various guidebooks produced by state government regulatory authorities point to three fundamental board responsibilities:

• Duty of loyalty – priority of the charity’s mission in decisions,
• Duty of care – wise use of the charity’s resources and,
• Duty of obedience – following bylaws and appropriate government regulations.

In this week’s blog, we will focus on one of these pillars, the duty of loyalty, and seek to address the other two in subsequent postings.

The duty of loyalty responsibility is often described as having charity board members that are not influenced in their decisions due to any related-party or other financial transactions with the organization. In part, this assurance of financial disinterest is seeking to ensure that charity board decisions are principally focused on what is in the best interest in the furtherance of the charity’s stated mission and not impacted by personal financial gain. But loyalty might also reflect a board member’s attention to what is most helpful to address the charity’s mission and not overly influenced by a board member’s outside personal agenda or interests.

In terms of addressing financial disinterest, two of the BBB Charity Standards directly address this matter. Standard 4 covers board compensation by seeking to ensure that no more than one or 10 percent (whichever is greater) of directly or indirectly compensated person(s) are serve as voting members of the board. Directly compensated voting members of the board are those who receive a direct benefit from the organization (e.g., paid staff member, paid consultant, etc.) Indirectly compensated voting members of the board are those who are direct family members (e.g., spouse, parent, sibling, or child) of any of the directly compensated individuals. In addition, the standard calls for compensated members not to serve as the board’s chair or treasurer.

BBB Charity Standard 5 addresses conflicts of interest. Specifically, it 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. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include but are not limited to: any arm’s length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing. In describing this standard, it is also important to note that the existence of a conflict-of-interest policy, while helpful and encouraged, does not necessarily mean that a conflict cannot occur. Each situation requires scrutiny of the circumstances before reaching a conclusion.

As stated in the board responsibility book produced by the Office of the New York State Attorney General, “Directors are charged with the duty to act in the interest of the corporation. This duty of loyalty requires that any conflict of interest, real or possible, be disclosed in advance of joining a board and when they arise. So that all members are aware of – and avoid – transactions in which the nonprofit’s interests are not primary, New York law requires nonprofits to have a written “conflicts of interest” policy.”  Also, a number of other Attorney General offices produce their own board responsibility booklets such as Massachusetts, New Hampshire and Oregon.

Additional guidance and recommendations on the two BBB Charity Standards cited above can be found in the implementation descriptions of the 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 featuring Pamela Timmons, Executive Director of Good Shepherd Ministries of Oklahoma (a BBB Accredited Charity) which seeks to provide free health care for those who are low-income and uninsured in Oklahoma City, including medical services, dental services and prescription medications.
 

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Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with Sean Davis, CEO of Merton Capital Partners. Sean discuses the Giving Pledge made by billionaires and how firms like his could be conduits to investments in corporations that can use those funds on massive projects to solve homelessness, lack of clean water, education and more.

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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 Association for Children
• Operation Homefront
• Just Detention 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.

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Recent news reports about the bravery of fallen firefighters and the shooting of police when addressing domestic incidents brings attention and sympathy to these public servants. This spotlight, however, is likely to also give rise to a growth in solicitations from a variety of police and firefighter organizations seeking contributions. As in every topic category in the charitable marketplace, there are well-managed and sincere efforts as well as those that unfortunately seek to take advantage of generosity for popular causes. In this spirit, Wise Giving Wednesday offers the following advice in considering requests for support.

The High Cost of Phone Call Fundraising

For more than half a century, countless numbers of police and firefighter groups have used phone appeals as the main source of raising money. In most instances, such appeals consist of what is known as “cold calls” – requesting donations from individuals who are not previous donors. Such fundraising usually results in very high fundraising expenses with 20% or less of collected funds being directed to the organization’s program service activities. Unless solicitors are misrepresenting their financial information in appeals, government agencies are unlikely to be able to address such financial arrangements. In terms of the voluntary 20 BBB Standards for Charity Accountability, Standard 9 specifically calls for a charity’s total fundraising expenses not to exceed 35% of contributions. In applying this standard, BBB Wise Giving Alliance looks at the past year’s financial statements, not just a single campaign circumstance.

Implying Help for Local Officers or Firefighters

The use of the words “police” or “firefighter” in the name of the organization does not necessarily mean that local firefighters or law enforcement officers will be receiving help. Appeals can sometimes be vague on this point. When in doubt, seek out additional information by asking for written information, visiting the organization’s website and/or seeking out reports form third-party sources such as Give.org and the Better Business Bureau serving your area.

Donations May Not Be Tax Deductible

Donations to police and firefighter organizations that are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code are deductible as charity contributions for federal income tax purposes. But not all such groups have that tax-exempt status. Some are tax exempt as fraternal organizations, benevolent life insurance associations or some other tax-exempt status. Unless the organization is tax exempt as a charity, a contribution might not be deductible.

Pressure to Donate

Be wary of any solicitor pressuring potential donors to make an on-the-spot gift decision. Honest organizations will welcome support at any time and will encourage you to give with confidence after addressing any questions or concerns that might be raised.

For additional assistance on this topic, see the following tips, search for charity reports and use other resources available at Give.org and BBB.org.

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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 Andrea J. O’Neill, Executive Director, Lupus Research Alliance (a BBB Accredited Charity) which seeks to find better treatments and support medical research to ultimately prevent and cure systemic lupus erythematosus (SLE or lupus), a debilitating autoimmune disease.
 

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Heart of Giving Podcast

This week, Heart of Giving Podcast features Dr. Una Osili, the Associate Dean of Research and International Programs at the Indiana University Lilly Family School of Philanthropy. Among other responsibilities, she leads the Giving USA Research. This week she sheds more light on some of the themes discussed in last week’s episode where we reviewed emerging trends.

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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:

• Pebble Tossers
• Love146
• United Spinal Association

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.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance 

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One of the BBB Standards for Charity Accountability (Standard 3) calls for charity governing boards to meet no less than three times per year with a majority in attendance on average at those meetings. Of the three meetings, one can be by phone as long as official minutes are taken.  In addition, this standard accepts video conferencing as an “in-person” meeting of the board as long as everyone can see each other.

While this standard has consistently been among the top reasons that a charity does not meet BBB Charity Standards, thanks to Zoom and other video conferencing options, there has been no significant increase in the percentage of charities found not to meet this standard. Although most charities are not currently holding physical meetings for governing boards as a result of the pandemic, they continue to use such video conferencing alternatives to engage their board of directors.

Engagement of decision-makers in charity activity is essential to ensure that an organization is on the right path and being well managed. This input is a vital component of accountability and needs to take place on a regular basis to help maintain proper oversight of the operations and staff of charitable organizations.

Most charities have also come to recognize the value of maintaining a board size that is manageable in terms of achieving adequate attendance. The era of large boards that include members who rarely attend meetings is a relic of the past that charities seek to avoid.  For those charities that do maintain large boards and may find this standard more difficult to meet, we generally suggest that they consider restructuring their board to have a smaller, core group serving as voting board members, and have a larger group of advisors that, while they do not hold voting positions, are still able to volunteer their time to provide input on the charity’s work.

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Video of the Week

This week’s Video of the Week revisits a previous interview with Kim Callinan of Compassion & Choices about the organization’s mission, goals, and challenges. Read our full report on Compassion & Choices here for more information.
 

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Heart of Giving Podcast

This week’s Heart of Giving Podcast includes an interview Pat Duffy, Co-founder, The Giving Block. The Giving Block is a platform that enables nonprofits to accept cryptocurrency donations and works directly with crypto companies and users to donate to their favorite causes. Pat shares his journey from the non-profit and consulting sector into crypto and talks about some of the trends that he’s been seeing. BBB Wise Giving Alliance recently announced a partnership with The Giving Block.

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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:

• Women’s Center Tarrant County
• Society for Science and the Public
• Girls Who Code

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.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance 

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Earlier this month, the Federal Trade Commission (FTC) released its Biennial Report to Congress on the National Do Not Call Registry. Over 240 million Americans placed their phone numbers on this directory during the past two years. The FTC maintains a National Do Not Call Registry at www.donotcall.gov. By signing up and including your phone number, you can reduce the volume of calls from businesses seeking to sell their services and wares, however, the registry does not apply to charities. Charities are not required to stop calling people on this Do Not Call listing. 

Many charities raise funds using telemarketing and do so responsibly, but there are others that some donors find annoying for a variety of reasons including the timing and frequency of the phone appeals. 

If you fall into this group and are seeking ways to reduce your charity telemarketing calls here are some tips to keep in mind.

If a for-profit telemarketer calls on behalf of a charity, you can request that the telemarketer place you on their internal do not call list.  From that point on, the firm can no longer call you on behalf of that specific charity, but they can call on behalf of other charity clients. So, the key is to be patient and persistent in making that request when you receive a charity call at home. Use the words “place me on your do not call list” and be sure to make note of the time, date, the name of the charity, the name of the telemarketing firm, and the phone number they used. If they call again on behalf of that charity, you can file a complaint with FTC at www.ftc.gov.  The more info you include in your complaint, the easier it will be for the FTC to identify and target bad actors for enforcement actions.

 

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Video of the Week

As part of our Building Trust Video Series, we are pleased to revisit a previous video featuring 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.

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Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with Asahi Pompey, Global Head of Corporate Engagement and President of the Goldman Sachs Foundation. She discusses contemporary Corporate Social Responsibility and the implications of the One Million Black Women initiative undertaken by Goldman Sachs. 

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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:

• Compassion & Choices
• Upstate Forever
• New Israel Fund 

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.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance