Format: Article

Yesterday in Washington, DC,  the Federal Trade Commission held its first charity conference: Give & Take: Consumers, Contributions and Charity. Both Bennett Weiner (BBB WGA’s Chief Operating Officer) and I were honored to participate on separate panel discussions that addressed various issues about safeguarding donors from fraud and deception. There were a variety of speakers at this event including those with backgrounds from academia, the federal and state regulatory community, crowdfunding sites, infrastructure organizations, nonprofit legal experts as well as charity monitoring groups such as BBB WGA. In part, BBB WGA seeks to educate the public about deceptive fundraising practices by sharing wise giving advice as well as by completing evaluative reports based on the 20 BBB Standards for Charity Accountability. These holistic standards, however, address more than just deception and also include provisions about good governance practices, transparency, results reporting and financial management. In my view, one of the most important elements of this gathering was the insights on the emerging challenges facing both donors and regulators in the future. In years to come, new forms of social media and communication will emerge such as applications of virtual reality which put viewers “in the scene” instead of just seeing a photo or video. This has the potential to create emotional fundraising asks that go far beyond what we have ever experienced. In turn, crowdfunding is evolving into forums that seek to help individuals not only raise money for immediate needs but also on a continuing basis. Regulators should gear up to this challenge and may need to seek outside collaborations to develop the skills and tools that will help them catch bad actors in these spaces.

---

March is colon cancer awareness month, and we are pleased to provide a video of Nicole Sheahan, Chief Development Officer of Colon Cancer Alliance (a BBB Accredited Charity) which works to unite patients, caregivers, health care providers, cancer researchers, policymakers, and concerned citizens in a campaign to eradicate colorectal cancer. The organization also seeks to advocate effective screening, diagnoses, treatment and support for research. March is colon cancer awareness month.

---

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:  

• Michael J. Fox Foundation for Parkinson’s Research
• New Venture Fund
• Seeing Eye

Finally, remember to let us know by going to https://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

A story posted on April 7^th by The Chronicle of Philanthropy highlights the importance of cybersecurity for charities. For obvious reasons, donors want to make online donations without fear of their credit card numbers being accessed by hackers. Many charity websites don’t just confine visitor interactions to contributions, they also may invite people to email questions or request assistance related to the organization’s mission.  So, privacy and security is more than a donation safety issue, it is about the potential theft of all types of charity data.  

The latest issue of the Wise Giving Guide, also addresses cybersecurity. We take a look at the various types of attacks charities encounter, from data breaches to social media and phishing.  We also discuss how charities can protect themselves from these attacks, maintaining a higher standard of donor trust.  Finally, we offer advice on how donors can be proactive in avoiding security pitfalls both with their own computer and mobile devices and in their online activities.

Standard 18 of our Standards for Charity Accountability addresses the issue of donor privacy in two ways. One part of this standard calls for charity websites to have a posted privacy policy that covers at least four points:

• What data is being collected and how it will be used;
• How to contact the charity t review your data and request corrections;
• If applicable, how to inform the charity one does not want this data shared with others; and
• What security measures the charity has to protect personal information. 

Charities need to be making sure they are protecting themselves, their stakeholders, and their donors from cybercrime.  In next week’s edition of #WiseGivingWed, BBB WGA will address another aspect of donor privacy: mailing lists. 

We are always working with charities to publish or update reports for donors.  Visit Give.org to check out any charity before giving.  Our recently evaluated charities include:  

• Southeastern Guide Dogs
• Elephant Sanctuary in Tennessee
• Heartbeat International
• Mennonite Central Committee

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ 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

In high school biology, most of us learn about the taxonomy classification system, first introduced in the 18 ^th century, that uses a ranking hierarchy to identify every creature on the earth starting with the broad categories of domain and kingdom and eventually ending with genus and species.  Although the history of the charitable sector dates back even earlier, its classification system is of more recent origin.  The National Taxonomy of Exempt Entities (NTEE) was initially developed in the 1980s by the National Center for Charitable Statistics which is currently part of the Urban Institute.  While both of these classification systems are very different, they serve a similar objective – to bring order to a field that has wide diversity. Like the animal kingdom, philanthropy covers so many different entities. The NTEE system includes over 26 codes representing everything from the arts and culture to youth development. And, each of these codes is further broken down into a dozen or more categories. 

For example, the NTEE codes for animal related organizations (labeled as category D) is defined as “nonprofit organizations whose primary purpose is to provide care, protection and control of wildlife and domestic animals that are a part of the living environment, to help people develop an understanding of their pets, and to train animals for the purpose of showing.” After this very broad definition, the category is further broken down into such areas as:

• D01 – Advocacy groups that seek to influence public policy
• D05-  Research Institutes
• D20 – Animal Protection and Welfare
• D30 – Wildlife Preservation and Protection
• D30 – Wildlife Sanctuaries
• D50 – Zoos and Aquariums
• D61 – Animal Training
• And more. 

Despite this comprehensive cataloging, our experience in reporting on soliciting charities has taught us that it can be difficult to identify the specific type of animal-related charity based solely on its name. Yet, donors do this each and every day, and may come to mistaken conclusions about what charity activities they are supporting.  This is all the more reason for contributors to read appeals carefully and go to the charity’s website to learn more details about the organization. Animal-related charities are one of the most asked about areas of donor interest at BBB WGA.  And of course, we encourage donors to also visit Give.org to verify the trustworthiness of the charity by seeing if they meet the 20 BBB Standards for Charity Accountability. 

---

On a related note, as part of our Building Trust Video series, we are pleased to provide a video of Priscilla Ma, Executive Director, World Animal Protection, (a BBB Accredited Charity) which collaborates with governments and international agencies on its four main program areas: stopping animals being cruelly traded, trapped, abused or killed; stopping farm animal suffering; safeguarding animals and the lives of the people who depend on them in disasters; and stopping the killing of dogs worldwide. 

---

 

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: 

• Pan African Sanctuary Alliance
• Partnership with Native Americans
• Wounded Warrior Project 

Finally, remember to let us know by going to  https://www.give.org/ask-us-about-a-charity1/ 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

Bitcoin, the cryptocurrency that started back in 2009, is getting a mountain of attention lately, this is mostly due to its meteoric increase in value, particularly in the past several months. Starting with a value of less than a dollar when it first arrived, an individual bitcoin skyrocketed to a high of $19,000 on December 18^th. This digital currency, however, can be divided out so that one can send just a fraction of a coin in making a transaction or purchase. It’s no surprise that bitcoin has attracted an increasing number of investors seeking to benefit from its growing gains. 

Some early investors have become millionaires based on the coins increased value. One anonymous investor, who claims to have amassed many millions from bitcoin, recently established a fund to donate $86 million of this amount to various charities: www.pineapplefund.org.  A charitable organization applies for support and, if approved, receives a donation in bitcoins. Prior to the Pineapple Fund, a number of charitable organizations had already been accepting bitcoins as a donation option for contributors. 

There are some cautions, however, for charities and donors to consider regarding bitcoins and other cryptocurrencies: 

• Volatile value and possible bubble. Bitcoin value can rise or drop dramatically in a short period of time, sometimes in just a few hours. Some critics are now claiming that bitcoin is a bubble that will soon burst.  For charities that accept bitcoins or other cryptocurrency, this suggests there are potential risks in holding on to the donation for a long period of time. 

• SEC advisories. On December 11^th, the Securities and Exchange Commission (SEC) issued a public statement on cryptocurrencies and initial coin offerings that recommends that investors and others find out more about such opportunities before they become involved and ask critical questions such as whether trading data is available and the identity of the individuals involved. 

• Criminal activity.  As reported by CNBC and other media, criminals have used digital currencies to move money between countries or transact other business since they are harder for law enforcement agencies to track. 

Of course, there are potential issues with all forms of fundraising and donation options. Each charity needs to decide, on its own, what is best for them given the facts and circumstances.  And certainly contributors should feel free to make donations in bitcoins or other currencies for those charities willing to accept these gifts. 

Before this blog ends, as we approach December 25^th we also want to wish everyone a Merry Christmas and a Happy Hanukkah which ends its celebration on December 20^th this year. 

---

Video of the Week 

As part of our Building Trust Video Series, we are pleased to provide a video that features Mitchel Rosenzweig, Chief Financial Officer of the Jewish National Fund a (BBB Accredited Charity) which promotes, educates and advocates for community and environmental issues surrounding Israel and the world. Among other things, it plants trees in the desert, builds parks, creates new communities, bolsters Israel’s water supply, and helps develop arid-agriculture techniques.  

---

Recent Reports 

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• American Kidney Services
• ChildFund International
• March of Dimes Foundation

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ 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

As reported in The NonProfit Times , a shorter version of the IRS application form for charitable tax-exempt status (IRS Form 1023–EZ) was introduced in 2014 to help the IRS deal with a backlog of applications which had reached 66,000 in 2013. Some applicants were waiting many months or years for an IRS determination to be made on their status.  In the 2015 Annual Report to the U.S. Congress, the National Taxpayer Advocate, which is a division of the IRS, concluded, in part, that “recognition as a tax-exempt organization is now virtually automatic for most applicants.”  Among other things, this lack of alleged due diligence in reviewing these applications creates problems for both donors and charities that are later determined to be taxable.

This report brings to mind one aspect of charity evaluations completed by BBB Wise Giving Alliance – we report on both new as well as established charities. As long as the charity has completed its first full fiscal year, almost all of the BBB Standards for Charity Accountability can be applied. BBB Charity Standards represent threshold accountability practices that charities can meet despite their age or size. This was one of the fundamental objectives that was considered when the charity standards were last revised in an open process with significant involvement from the charitable community and other philanthropic experts. The principles of adequate oversight by the governing board, financial transparency, accurate appeals, and a commitment to results reporting are relevant to all organizations and are addressed in these standards. 

---

As part of our Building Trust Video Series, we are pleased to provide the following video an interview with Thomas G. Bognanno, President & CEO of  Community Health Charities (a BBB Accredited Charity).  This organization has one of the largest workplace giving programs in the U.S. and during the past five years has helped distribute more than $400 million to its nearly 2,000 member charities which focus on health issues. Also, workplace giving is the subject of the cover story in our latest Wise Giving Guide. 

---

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:    

• First Nations Development Institute
• Friends of the Earth
• Global AIDS Interfaith Alliance  

Finally, remember to let us know by going to  https://www.give.org/ask-us-about-a-charity1/ 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

Today, March 8 ^th, is International Women’s Day which is a “global day celebrating the social, economic, cultural and political achievements of women.”  It has been observed since the early 1900s and has grown in popularity over the years due to increased public attention about women’s equality issues.  

Women also have a significant role in philanthropy as well. As reported in the NonProfit Times in 2015, research completed by the Women’s Philanthropy Institute at the Indiana University Lilly Foundation School of Philanthropy found that women are more likely to give to charities than their male counterparts across generations and “are more likely to spread their giving across more organizations, while men concentrate their giving.”  These findings are not surprising to us.  In BBB WGA’s experience, we generally receive more inquiries about charities from women than men.  

So, one way to honor International Women’s Day is to follow their lead in supporting charities.  Of course, we also urge donors to visit Give.org to verify if the selected charities meet the 20 BBB Standards for Charity Accountability. 

---

On a related note, as part of our Building Trust Video series, we are pleased to provide a video that features Jennifer Windsor, CEO of  Women for Women International (a  BBB Accredited Charity).  This organization was founded twenty years ago to help the most marginalized of women in conflict affected countries to rebuild their lives.  The heart of their program is a 12-month training program that helps provide basic skills such as economic, literacy and knowledge of health and basic rights.  

---

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:

• Kiwanis Children’s Fund
• New Venture Fund
• Seeing Eye 

Finally, remember to let us know by going to  https://www.give.org/ask-us-about-a-charity1/ 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

While there is no universal agreement on the best way to address poverty, the diversity of available options among charities provide opportunities that help people in their struggle to improve their situation for themselves and their children. We encourage donors to find out more about the charities they choose to support and learn how they are seeking to address the problems they describe so well. And, of course, take the time to verify if the charity meets the 20 holistic BBB Standards for Charity Accountability by reviewing the available reports on Give.org.

---

As part of our Building Trust Video Series, we are pleased to provide the following video that features Joshua Tripp, COO & CFO of the Grameen Foundation (a BBB Accredited Charity) which helps the world’s poor by providing financial services, information on agriculture and health, and helps poverty-focused organizations improve their operations by providing mobile-based management tools and other technology resources.



---

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Aid for AIDS International
• Hooved Animal Humane Society
• National Foundation for Cancer Research

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ 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