Format: Article

  • Fraud Advisory for Charities:  International Charity Fraud Awareness Week

    Fraud Advisory for Charities: International Charity Fraud Awareness Week

    BBB Wise Giving Alliance is participating in International Charity Fraud Awareness Week (October 19-23) which is an international coalition of regulators, law enforcement agencies, charities and nonprofit associations seeking to raise charity fraud awareness. BBB WGA has produced two advisories, one for charities below and one for donors at this link.


    Be Fraud Aware

    • Email Compromise Fraud.  This may take a variety of forms. A charity employee receives an email that appears to be from their boss, asking them to send gift cards for designated amounts or personal information on employees. The email actually comes from a scammer using the name of the supervisor. Usually this can be detected by hovering over the name and seeing the supervisor’s email address is not correct.
    • Fake Check Scams. A charity receives an email from an individual announcing a large donation will be sent via overnight mail. The scammer calls after the check arrives and says an error was made and the charity needs to return some of the money via wire transfer or online for a medical or other personal emergency. After money is retuned, the charity learns the original check is fake.
    • Bad Links. Alert staff and volunteers not to click on links within unexpected or unsolicited emails. This can download viruses that in some cases seek to capture personal information. Senior executive need to be especially vigilant about this. When a CEO’s or CFO’s compute is compromised, it may expose your charity’s financial accounts and personnel data to fraud or theft.
    • Phony Invoices. The charity may receive an invoice for services never ordered or for listing the organization in a non-existent directory. Implementing additional internal controls can address such problems, such as creating purchase request forms.
    • Charity Identity Theft. Like businesses, charities can have their identities stolen by scammers who might attempt to solicit dollars or personal consumer information in your nonprofit’s name. Guard your organization’s identify information and access as carefully as you would your own. Consider implementing email authentication protocols to help prevent spoofing of your organization’s emails.

    Take Time to Check

    • Check Bank Statements. Review bank statements on a regular basis to identify any unusual or suspicious activity. Make sure expenses have corresponding purchase orders and invoices.Talk with your banker and other financial services providers about implementing appropriate payment controls to safeguard your accounts.
    • Verify Vendor Before Sharing Info.  If an outside company contacts the charity requesting bank account numbers or other sensitive information, verify they are an authorized vendor contact and the nature of the transaction. Establish and follow strong internal control procedures for all vendor payments: your organization’s accounting firm can help advise on such procedures.
    • Be Skeptical of Unbelievable Offers.  Whether it’s a promise of “double your money” investments or the paper supply sale of the century, if it sounds too good to be true, it probably is. Check out businesses with the Better Business Bureau serving your area.

    Keep the Charity Safe 

    • Remote Access No-No. Inform charity staff never to provide remote access to a laptop or computer following a cold call or unsolicited text.
    • Test Payment Transactions. Before making an online or bank transfer to a vendor for the first time, test with a small amount first to make sure it runs properly.
    • Put It in Writing.  Agreements with outside vendors should be in writing and ensure that terms are fair to your nonprofit. Be mindful of automatic renewals and termination clauses, and carefully review terms in unilateral agreements, which are common with online vendor platforms. Ask vendors about their privacy, data security, and cybersecurity safeguards when relevant, and be sure they use appropriate procedures.



  • Wise Giving Wednesday: Our 300th Blog

    Wise Giving Wednesday: Our 300th Blog

      Today’s Wise Giving Wednesday post represents the 300th edition of this blog. That’s approximately 80,000 words written over the past six years. In recognition of this milestone, I thought it would be helpful to look back and identify some of the more important lessons learned about charity accountability. While this does not intend to capture everything we have covered, there are several recurring issues that come to mind. Truth matters. The century-old legacy of the Better Business Bureau system is “truth in advertising.” While this objective focuses on business advertising, it is equally applicable to the charitable marketplace. For charities, the key is ensuring that the contents of their fundraising and other communications are accurate, truthful and not misleading, both in whole and in part. This appeal accuracy issue is also addressed in BBB Charity Standard 15.  Inaccuracies and misleading statements can occur in a variety of forms, ranging from outdated stories and/or statistics used in appeals to misleading statements about the nature of a charity’s activities. As most of these occurrences are inadvertent and not intended to deceive, one of the best ways for charities to avoid such problems is to have internal review procedures in place for fundraising content. For example, charity staff members outside the development department could routinely review appeal content. Accountability is more than transparency. Today’s online world enables donors to access more information on charities than in past years. For instance, there are a variety of places one can access to get the latest IRS Form 990, the annual financial information return completed by charities. While such transparency is to be applauded and encouraged, such data availability does not ensure that other charity accountability matters are followed. In our view, accountability involves a more comprehensive approach that also addresses board oversight, results reporting, financial management, and appeal accuracy. These matters require additional information beyond what is typically included in IRS Forms or other financial statements. This holistic approach is also reflected in the 20 BBB Standards for Charity Accountability. Once lost, trust is difficult to recover. Even the most well-known and loved charities can get in trouble. That’s a hard-earned lesson. No charity wants to be the subject of scandal. While it is unlikely a charity can protect itself from all possible problem circumstances, in our experience, the most effective response is for the organization to be open about what happened, have an outside entity investigate and make recommendations to the governing board, and implement changes as needed. Trust, however, generally involves consistency over time. Charities that violate that trust will need to demonstrate that their practices have now improved. This won’t likely happen overnight but donor relationships can be strengthened after appropriate improvements demonstrate a change in practices.

    Video of the Week

    As part of our Building Trust Video Series, we are pleased to provide a video featuring Delaney Gracy, M.D., Senior Vice President and Chief Medical Officer,  Children’s Health Fund (a  BBB Accredited Charity) which seeks to deliver health care to disadvantaged children. Among other things, it has a national network that operates in 17 states and the District of Columbia that help reach over 75,000 individuals each year.


    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. H. Art Taylor, President & CEO BBB Wise Giving Alliance
  • Wise Giving Wednesday: New Ways of Thinking About Impact

    Wise Giving Wednesday: New Ways of Thinking About Impact

    On October 1st, BBB Wise Giving Alliance held a webinar titled “New Ways of Thinking About Impact” which featured several speakers discussing contemporary interpretations on how best to capture charity impact. We were proud to feature three experienced and respected voices on this issue: Debra Natenshon, founder of DBN & Associates; Megan Campbell, Directors of Programs and Strategy at Feedback Labs and Dan Cardinali, President & CEO of Independent Sector. I introduced the panel by noting that “impact” has become a more important concept in the charitable sector, but also has been the subject of various descriptions and definitions ranging from charity outputs and outcomes to charity spending.

    Debra Natenshon began the discussion by referencing Mario Marino’s 2011 book “Leap of Reason” which explains, among other things, the importance of outcomes in a time of scarcity. This help lead to the concept of the Performance Imperative (2015 and revised 2018). High performance is described as “the ability to deliver – over a prolonged period of time – meaningful, measurable and sustainable results for the people or causes the organization is in existence to serve.” More information on the subject of long term impact and performance can be found at leapambassardors.org and at DBN & Associates.

    Megan Campbell from Feedback Labs described how perceptual feedback from a charity’s ultimate constituents or beneficiaries can help define and achieve impact. She explained that the link between feedback and impact has been well studied in the medical field. This has been repeated in the social sector as well to help a charity track progress and/or if it needs to adjust course to address its mission. Ms. Campbell gave some specific examples including the Irvine Foundation as well as the Center for Employment Opportunities. She noted a number of resources that Feedback Labs has compiled to help join the feedback movement.

    Dan Cadinali from Independent Sector provided additional context of a case study. He previously worked at Communities In Schools a youth-centered organization that seeks to help children succeed and lower dropout rates. Among other things, they developed a data management system that addressed feedback to help drive outcomes for students over a period of time. They did this internally and only went to a series of third-party evaluations at the end. Mr. Cardinali noted it matters what every single nonprofit does every day when it comes to being open and committed to driving measurable results.

    For additional details, see the full webinar


    Video of the Week

    As part of the Building Trust Video series, we are pleased to provide a video that features Nancy Brown, Chief Executive Officer of the American Heart Association (a BBB Accredited Charity) which seeks to improve cardiovascular health of all Americans while reducing deaths from cardiovascular diseases and stroke. The organization also reports that it works as a catalyst connecting across sectors, communities, and countries to drive toward an equitable and healthy world. AHA works to accelerate heart and brain science through grants. AHA also translates science and advocates to see it applied in the healthcare system, in public policies, and in communities. The organization provides science-based treatment guidelines to healthcare professionals to help them provide quality care to their patients, and educates lawmakers, policymakers and the public to advocate for changes to protect and improve the health of our schools, worksites, and 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.

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



  • Wise Giving Wednesday: Giving to Charities During COVID-19

    Wise Giving Wednesday: Giving to Charities During COVID-19

    As our nation continues to battle with COVID-19, many charities are also continuing to struggle with making ends meet. Whether it is the loss of revenue associated with in-person fundraising events or an overall reduction in donations, charities need your support and generosity now. The last quarter of the year is often the most important for charities in terms of the volume of anticipated donations. So, don’t wait until your favorite charity asks, take the initiative and make your donation as soon as you can. But, of course, we urge you to verify if the organization meets the 20 BBB Standards for Charity Accountability. Use our search engine on our homepage to look for both nationally-soliciting and regionally-soliciting charities that have been the subject of a report by either the BBB Wise Giving Alliance or a Better Business Bureau. In addition, I offer you to view the following recorded announcement which notes the importance of supporting charities during difficult times. Please listen to this message and give generously.


    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.

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

  • Wise Giving Wednesday: The Heart of Giving

    Wise Giving Wednesday: The Heart of Giving

    It’s easy to take a cynical view that people are inherently focused on their self-interests.  However, that view is countered every day by people who make sacrifices to assure the wellbeing of others, often people they don’t know. Our work at BBB’s Give.org is based on the notion that every person is born with a heart wired to give and serve. In line with Maslow’s Hierarchy of Needs, individuals do have to meet universal physiological and safety needs to function. However, once fulfilled, his theory asserts that people search for connections that enhance their sense of intimacy, trust, acceptance, and love.

    While his theory focuses on the realm of daily interpersonal relationships, when you expand its scope, it’s clear that the principles behind Maslow’s Hierarchy support the efforts of givers – those intent on both making a difference and serving others. Whether inspired by childhood experiences, driven by a moral compass, or passionate about different life ideals, we see people pour themselves out in service daily.

    The act of giving transcends worldly boundaries—individuals are constantly finding innovative ways to make a difference with their words, time, dollars, and heart. Gone are the days where people’s contributions to causes are defined only by how much money they can donate or the time they spend at physical events. We’re in a new era, and the landscape of giving has been and will continue to be rewritten before our very eyes.

    We know that just like individuals, generosity and service comes in many shapes and sizes. From charitable organizations’ tireless efforts throughout the non-profit sector to for-profit crowdfunding platforms helping to get money to individuals in need, giving back is not a one-size fits all occurrence.

    People may not always be able to supply financial support to charitable missions, but they don’t have to in order to be an agent of change. As the famous American poet Maya Angelou once said, “When you learn, teach. When you get, give.” This notion is what it looks like to give.

    We are driven to share what we know and give what we have. Through acts of kindness, we spread love to others, offer acceptance to those from different walks of life, and support a harmonious atmosphere of benevolence. But do we truly understand why? What drives us to serve selflessly and set ourselves aside to reshape someone else’s narrative? In addition, what is the impact when we give and redefine how it is done?

    That’s the journey we’ll take on The Heart of Giving Podcast. We’ll focus on the power that giving has on the human spirit and our society. We’ll identify the heartbeat behind, “Why we give!”

    Journey with us as we unpack this and other topics of importance to our giving community.


    Video of the Week

    As part of our Building Trust Video series, we are pleased to provide a video that features Lynda Houk, Executive Director, Vera Bradley Foundation for Breast Cancer (a BBB Accredited Charity evaluated by the Better Business Bureau serving Northern Indiana.)  This organization raises funds for the Vera Bradley Foundation for Breast Cancer Research Laboratories at the Indiana University Bren Simon Cancer Center in Indianapolis, Indiana.


    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.

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



  • BBB WGA CEO Art Taylor Calls for Greater Board Diversity at Private Foundations

    BBB WGA CEO Art Taylor Calls for Greater Board Diversity at Private Foundations

    In an article posted to the Forbes website today, BBB WGA’s President & CEO Art Taylor laid out his call to action to America’s Foundation community, seeking increased racial diversity, equity and inclusion on their boards of directors.  Read the full article on forbes.com





  • Wise Giving Wednesday: Charity Name Look-Alikes

    Wise Giving Wednesday: Charity Name Look-Alikes

    A press release issued by the Michigan Attorney General on September 4th reminds us that we sometimes need to be extra careful when considering a charity’s name. The Attorney General’s complaint is seeking to dissolve ten entities that had names that appear affiliated with well-known charities such as American Cancer Society, American Red Cross, and United Way, when in fact, they are not. These entities were incorporated in Michigan with the help of a former New York stockbroker with a history of alleged fraudulent activity. None of them were registered as charitable organizations with Michigan. The names of these look-alike groups are:

    • American Cancer Foundation of Detroit
    • American Cancer Foundation of Grand Rapids
    • American Cancer Foundation of Lansing
    • American Cancer Foundation of Michigan
    • American Cancer Society of Detroit
    • American Cancer Society of Michigan
    • American Red Cross of Detroit
    • American Red Cross of Michigan
    • United Way of Detroit
    • United Way of Michigan

    In addition, the Michigan release notes that the referenced former stockbroker registered nonprofits in California, Wisconsin, Ohio, Georgia, New York, Florida and Maryland all using similar variations of the names United Way, American Red Cross and American Cancer Society. The release further explains that the former stockbroker “and his allies may be committing multiple violations of the Michigan Nonprofit Corporations Act (NCA), which led the Attorney General’s office to seek from the Court a permanent injunction against the defendants and involuntary dissolution of the entities. The states of California, North Dakota and Washington took similar action in 2018 and 2019 against entities that this person established.”

    While it is not unusual for a charity to identify a disease, problem or issue that it seeks to address as part of its official name, it can be suspicious if the name appears to closely mimic or match that of a long established and recognized charity brand. While sometimes elements of similarity are unintentional and just reflect the popularity of a cause, there can be instances when organizers are seeking to deceive the public.

    To help avoid donor confusion on name similarity, here are some suggestions:

    Review the Name Carefully.  While this advice may seem obvious, because of other demands on our time and attention, we are not always as careful as we should be.

    Visit the Charity’s Website. This can help you verify the organization’s location, current activities, and if you have potentially confused it with another group. If the charity name suggests it is a local affiliate of a larger known group, visit the website of that group’s national office to help verify that connection. For example, see the website links for the following national charity offices:

    American Cancer Society local affiliates
    American Red Cross locations
    United Ways in the United States

    Address Verification. Don’t assume the charity is located in the city and/or state appearing on the return envelope in a direct mail appeal. For large mailings, it is common for charities to use a different address, such as a P.O. Box, to help provide security and ensure prompt depositing of contributions. So, if you are just using the address to verify the identity of the charity, you may be mistaken.

    Be Wary of Pressure to Donate Immediately. Excessive pressure in fundraising can unfortunately also be used as a means of reducing your likelihood of checking out the charity before donating.

    Confirm Charity’s Registration 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.

    Check with 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. The American Cancer Society, American Red Cross and United Way Worldwide are BBB Accredited Charities (i.e., they meet the referenced 20 BBB Charity Standards.)


    Video of the Week

    As part of our Building Trust Video Series, we are pleased to provide 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.


    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.

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

  • Wise Giving Wednesday: Donating for Wildfire Relief for West Coast States

    Wise Giving Wednesday: Donating for Wildfire Relief for West Coast States

    Thousands of acres of land across the West Coast, particularly Southern California, continue to burn and evacuations were ordered for many homes as the flames are vigorously battled by firefighters. As reported this week, there are about 40 large fires in California, Oregon and Washington. High temperatures and wind conditions are contributing to the situation. To assist those seeking to provide help to either the impacted families, firefighters or both, here are some suggestions.

    • Give to Established Charities – Charities with experience in handling disaster situations will be more likely to be able to provide assistance quickly and effectively. Be cautious of new organizations that make promises to help without any connections, budgets or plans.  
    • Volunteer and Gifts in Kind – If you live near the impacted areas, one giving alternative might be to provide housing for firefighters or donate non-perishable food to help feed those battling the blaze. Contact charities such as the Salvation Army and United Way to find out more.
    • Be Wary of Vague Appeals – Watch out for vague appeals that don’t describe the intended use of funds. For example, will they be used to help displaced families cover temporary housing, rebuild burned communities, or help address other needs?  Also, unless told otherwise, donors assume that funds collected quickly in the wake of a disaster will be spent just as quickly.
    • Crowdfunding Cautions – For crowdfunding postings, it is always safest to contribute to people and/or families that you personally know that have posted pleas for financial help. While some crowdfunding sites take precautions in carefully screening postings after a disaster, others might not. If unsure, review the posting procedures described on the crowdfunding site and also find out about transaction fees and other specifics. If the posting claims they will be forwarding funds to an existing charity, consider cutting out the middle man and visit the website of the charity directly.
    • Financial Transparency in Disaster Relief – After funds are raised to address a disaster, it is vital for organizations to provide an accounting of how funds were spent. Transparent organizations will post this information on their websites so that anyone can find out and not have to wait until financial statements ae available sometime in the future.

    The following organizations are BBB Accredited Charities (i.e., meet the 20 BBB Standards for Charity Accountability) and currently have a website homepage that announces they are collecting funds to assist those impacted by the West Coast wildfires.

    Americares

    American Red Cross

    Direct Relief

    GlobalGiving

    Salvation Army


    Video of the Week

    As part of our Building Trust Video Series, we are pleased to provide a video featuring John Engle, Co-Director, Haiti Partners (a BBB Accredited Charity) that centers its work on Haitian education through two primary avenues schools and holistic churches. The organization reports that it provides education for over 1,200 students in six partner schools and its own flagship school, the Children’s Academy and Learning Center. Haiti Partners states its school-based community development model allows for students to receive education and learn locally relevant knowledge like permaculture gardening and composting.
     

     


    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.

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

  • Wise Giving Wednesday: Engaging Donors During Difficult Times

    Wise Giving Wednesday: Engaging Donors During Difficult Times

    During difficult times, it is even more important to look for signals of hope that may help encourage and teach so that we can move forward to better days. Two recent pieces appearing in The NonProfit Times provide such inspiration for charities seeking to strengthen their engagements with donors.

    In one article the NonProfit Times reports that data compiled by LinkedIn shows that “…its members in the United States added more than 110,000 volunteer activities to their profiles each month, more than twice the rate in 2017.” There are probably a number of potential influences on this growing volunteer figure including, but not limited to, those seeking to assist charities addressing increased needs caused by the pandemic, the growing interest in civil rights organizations, and that many households are unable to donate as much cash as they would like due to economic uncertainties and hardships.

    In another piece, the NonProfit Times cited a study completed by the 2020 M+R Benchmarks Report that indicates “text messaging volume increased by 14% overall” which was more than the growth seen in social media or email. These online communications will probably experience even more growth in 2020 as charities seek to inform their contributors about how they are coping with fundraising shortfalls and, in many cases, increased need for their services.

    These stories spark hope because they confirm the public’s ongoing desire to support charities, even when money is tight. Engagement through volunteering and text messaging can strengthen the relationship between a charity and its donors, and may ultimately lead to contributions after the crisis. With only four months remaining in the calendar year, charities need all the help they can get, so it is encouraging to know outreach options are available.


    Video of the Week

    As part of the Building Trust Video Series, we are pleased to provide a video featuring Christopher Banks, President & CEO, Autism Society (a BBB Accredited Charity) which seeks  to advance the dignity, self-sufficiency, independence and quality of life of all living with autism. The organization works to accomplish this through advocacy, education, a national call center, support groups, training, resource updates, national, local and state leadership, neighbor helping neighbor efforts, lifespan support, adult transition, early diagnosis, and early education therapy.


    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.

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

     

     

  • Tips on Donating for Hurricane Laura Relief

    Tips on Donating for Hurricane Laura Relief

    To help those seeking to make donations for Hurricane Laura relief efforts, BBB Wise Giving Alliance offers the following tips.

    LOOK FOR APPEAL CLARITY. Seek out appeals that are upfront and clear about what disaster relief services you are supporting.

    GIVE TO EXPERIENCED GROUPS. Support experienced organizations that stand ready to provide quick and effective assistance. Be cautious of organizations that form overnight in the wake of a disaster.

    BE WARY OF 100 PERCENT CLAIMS. Watch out for claims that 100 percent of donations will assist relief victims. The organization is probably still incurring administrative and fundraising expenses, even if it is using other funds to cover these costs.

    GIVE MONEY RATHER THAN GOODS. Donating money is the quickest way to help and provides charities the flexibility to channel resources to impacted areas.

    RELY ON EXPERT OPINION. Rely on expert opinion when it comes to evaluating a charity. We recommend giving to charities that meet all 20 BBB Standards for Charity Accountability, found at BBB’s Give.org.

    UNDERSTANDING CROWDFUNDING. If engaging in crowdfunding, give to someone you know and trust, and review the platform’s policies and procedures. Keep in mind that some crowdfunding sites do very little vetting of individuals who decide to post for assistance after a disaster.

    IDENTIFY CELEBRITY FUNDRAISING PLANS. Before donating to a celebrity’s fundraising effort, look beyond the fame. See if they identify plans for intended use of funds or whether they are collaborating with a well-established charity.

    The following organizations are BBB Accredited Charities (i.e., meet the 20 BBB Standards for Charity Accountability) and currently have a website homepage that announces they are collecting funds to assist Hurricane Laura relief efforts.

    American Red Cross
    Americares
    Direct Relief
    Feed the Children
    GlobalGiving
    Heart to Heart International
    International Medical Corps
    Project HOPE
    Salvation Army
    Save the Children
    Volunteers of America
    World Vision