Format: Article

Wise Giving Wednesday: Charity Trustworthiness
I often point out that the BBB Wise Giving Alliance is a standards-based charity evaluator that seeks to verify the trustworthiness of charities by completing rigorous evaluations based on 20 holistic standards. How do we define trust? These are the areas addressed by the BBB Standards for Charity Accountability such as charity governance, effectiveness reporting, finances, fundraising, and appeal accuracy.

The concept of trust points to expected future behaviors based on past experience. In turn, the evaluations competed by BBB WGA are looking back at what the charity has done in the previous year in terms of the various issues addressed by our standards.

Reliability is another component of trust that provides confidence that the charity will do what it says. There is an honesty component of this behavior verification that, in part, is addressed by the BBB Charity Standards that addresses appeal accuracy. Reliability is also enhanced by proper oversight such as the stewardship exercised by an active and engaged governing board that is focused on the best interests of the charity.

In a way, trust provides the platform that helps fuel contributions and provides the charity with an opportunity to forge relationships with donors that extend beyond just financial support.

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Barbara Newhouse, President and CEO, ALS Association (a BBB Accredited Charity) which seeks to address amyotrophic lateral sclerosis through global research, providing assistance for people with ALS through a nationwide network of chapters, coordinating multidisciplinary care through certified clinical care centers, and fostering government partnerships.

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 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
July 17, 2020
Wise Giving Wednesday: Fundraising for Victims of Sutherland Springs Shooting
This year experienced more than its share of disasters and tragedy. Yet again we are faced with the results of another mass shooting − this past Sunday at a church in Sutherland Springs, Texas. As reported, 26 people were killed, about 4% of the town’s 600 residents. It is beyond heart wrenching and is difficult to comprehend. Understandably, many are drawn to help the victims and their families and have turned to crowdfunding sites to make donations to help pay for medical costs, funerals and other needs.

BBB Wise Giving Alliance recommends that before one makes donations towards these efforts, review the tips included within our advisory: “Charitable Giving After a Tragedy.” One of the important points raised in this piece is that organizations or individuals raising funds to help victims of a tragedy should first get permission from the families to use either the names of the victims and/or any photographs of them. Also, while some crowdfunding sites have established measures to catch questionable entries that appear after a tragedy, others are not so careful.

And, of course, watch out for vague crowdfunding appeals that don’t; identify the intended use of funds. It should be specific such as specifying it will be used to help pay for funeral expenses.

Video of the Week

As part of our Building Trust Video Series we are pleased to provide a video featuring an interview with Peter Bale, CEO of The Center for Public Integrity (a BBB Accredited Charity). The Center conducts nonpartisan, independent investigative journalism about money in politics, the environment, labor, juvenile justice, national security, business, and health.

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 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
July 17, 2020
Wise Giving Wednesday: Contributing to Hurricane Michael Disaster Relief
Hurricane Michael which is expected to make landfall in the Florida panhandle on Wednesday is anticipated to be a powerful storm. As reported, only three other major hurricanes have hit that area of the U.S. since 1950. As disaster relief organizations begin to solicit for relief assistance, BBB Wise Giving Alliance encourages donors to review our Disaster Relief Donation Tips page and also keep the following three basic points in mind.

1.   Donate to experienced disaster relief organizations. These groups are the best bet to help provide quick and effective assistance to those impacted by the storm. Be cautious about newly established groups and/or those that are vague about what type of help they intend to provide.

2.   Crowdfunding cautions. If you decide to contribute via crowdfunding, it is safest to give to individuals who you personally know that have posted requests for assistance. While there are places such as Give.org that help vet charities, it is difficult to vet individuals. And remember to check the terms and conditions of the platform to learn how your donation will be affected.

3.   Seek out BBB Accredited Charities. To help verify charity trustworthiness, visit Give.org to access reports that indicate if the relief organization meets the 20 BBB Standards for Charity Accountability.

When appeals begin to emerge, we will post a list of BBB Accredited Charities (i.e., organizations that meet the 20 BBB Standards for Charity Accountability) raising funds for Hurricane Michael relief.

Recent Media Mention

We also would like to bring your attention to a story posted by ConsumersAdvocates.org, Give.org – The Benchmark for Giving, which provides an overview of the history and reporting activities of BBB Wise Giving Alliance.

Video of the Week

As part of our Building Trust Video series, we are pleased to provide a 2016 video that features Lt. Col. Ron Busroe (recently retired) from The Salvation Army’s National Headquarters in the United States (a BBB Accredited Charity). Lt. Col. Busroe recently retired from the organization. The Salvation Army works through a network of 7,580 facilities in communities throughout the United States. The organization services include providing shelter for the homeless, food for the hungry, daycare services for the elderly, assistance for the disabled, job training for displaced individuals, Bible classes for people in prison, relief for disaster victims, after-school tutoring, youth camps, and recreation activities for children.

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
July 17, 2020
Wise Giving Wednesday: Cause Marketing Cautions
One popular way to raise funds is cause-related marketing: a business sells its product(s) to consumers with the announcement that some of the purchase price will help a specified charity. While this promotional approach has been successfully carried out for decades, BBB Wise Giving Alliance continues to see problems taking place in either the advertising or the specifics of the arrangements. The following provides advice for the different parties involved.

Consumers

If consumers are attracted to the promise that their purchase(s) can help a charity, BBB Wise Giving Alliance recommends that they look at the promotion carefully to see if it specifies the actual or anticipated amount of the purchase that will help the charity (for example, 5 cents for every box of cereal sold.) Not all advertisements are clear on this point and some use vague language such as “proceeds” or “profits” will go to a charity. This transparency is also required for charities to meet Standard 19 of the BBB Charity Standards. In addition, if there is some time limit on the campaign (i.e., during the month of October) or guaranteed minimum /or maximum amount that can be raised (i.e., up to $200,000), those points should also be included in the promotional disclosure.

Businesses

Businesses, whether large or small, should remember that they need to get official permission to use the charity’s name before engaging in such advertising activity, especially in the use of any charity trademark or logo. This is best done in writing in some type of contract or agreement that is signed off by both parties. This good practice is applicable to a department store, restaurant, manufacturer or other business type that engages in cause-related marketing activities. Whether large or small, businesses should take these promotions as seriously as they address other types of advertising. And, of course, that also means the advertising content should be accurate, truthful and not misleading, both in whole and in part.

Charities

A charity should ensure that it receives drafts of the promotional references to its name to help ensure that advertising materials are accurate and include the recommended disclosures. It is best to incorporate this as a requirement in a written agreement with the business collaborating in the campaign. Also, the charity should make sure the agreement provides details as to when the charity will receive funds raised as a result of the promotion. We have heard of cases where the charity turns into a corporate bill collector, sending reminder notices to businesses that have not followed through on the amounts promised to the charity during the campaign.

Verifying Trust

Before entering into such arrangements both businesses and charities should check each other out to ensure that the other party is trustworthy. Is the business accredited by the BBB? Does the charity meet the 20 BBB Standards for Charity Accountability? Visit BBB.org and Give.org for additional assistance.

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video of Stephen Wells, Chief Executive Officer, Animal Legal Defense Fund (a BBB Accredited Charity) which seeks to protect the lives and advance the interests of animals through the legal system. Through its litigation program, the organization files lawsuits to stop the abuse of companion animals, and animals abused in industries including factory farming and the entertainment business. ALDF also works with law enforcement and prosecutors to seek maximum penalties for animal abusers.

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
July 17, 2020
Wise Giving Wednesday: If You Don’t Want Charities to Call
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.

As many of you have probably heard, the Federal Trade Commission maintains a National Do Not Call Registry at www.donotcall.gov. By signing up and including your phone number, you can certainly 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.

If a for-profit telemarketer calls on behalf of a charity, however, 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 scammers for enforcement actions.

Regarding prerecorded calls, FTC rules went into effect in September 2009, “prohibiting most prerecorded telemarketing calls, known as robocalls, unless the telemarketer has the consumer’s prior written authorization to transmit such calls.” This prohibition on robocalls applies to for-profit telemarketing firms calling on behalf of charities. One additional rule that comes into effect as of May 12, 2017 relates to the use of something called “soundboard technology” which enables telemarketing calls to play prerecorded audio snippets in response to consumer questions or comments. This new rule will also apply to telemarketing firms calling on behalf of charities that use this soundboard technology. For further details see the FTC staff opinion letter: https://www.ftc.gov/policy/advisory-opinions/letter-lois-greisman-associate-director-division-marketing-practices

As part of our Building Trust Video series, we are pleased to provide a video of Greg Anglea, Executive Director, of a regional charity, Interfaith Community Services (a BBB Accredited Charity) that offers programs in North San Diego that address (a) nutrition & basic needs, (b) employment, (c) housing, (d) addiction and recovery services and (e) self-sufficiency and support services.

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 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
July 17, 2020
Wise Giving Wednesday: Building Trust Part 4
Governance & Oversight: Conflict of Interest

For most publicly-soliciting charities, three words they hope to never hear are “conflict of interest.” When donors place their trust in a charity, they expect the charity’s mission, not personal financial gain, to be the motivation for leadership decisions made by the board of directors and paid staff. In some ways, this is one of the core distinctions between a for-profit business and a not-for-profit organization. So when this expectation is violated, contributors may feel betrayed or deceived.

This is why the fifth standard in the BBB Standards for Charity Accountability calls for no transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. This standard is intended to cover related-party transactions ranging from significant charity purchases of goods or services, grants and donations to board-member affiliated charities and loans made to board or staff members.

This does not mean that any related party transaction results in the charity not meeting our standard. This is where a review of the individual fact circumstances becomes important as no two transactions are exactly alike. These factors include, but are not limited to, the amount of the transaction, whether the interested board member participated in the board vote on this purchase, if competitive bids were taken and whether this was a one-time or ongoing transaction.

So, what are some examples of transactions that raise red-flags of potential conflicting interests? Here are some that would raise concerns:
- A charity board member is a principle in a fund raising company that the charity has contracted for the past ten years.
- A charity makes a significant financial loan to an executive staff member so he can make major renovations on his home.
- The grants approval committee of the charity’s governing board has decided that almost all of its grants will go to board member affiliated charities.
While most charities have a board conflict of interest policy, the mere existence of such a policy does not automatically resolve problems with this standard. The BBB WGA will ask the charity what steps were taken to ensure that a related-party transaction is not a conflict. In some instances, however, the transaction may be so significant that it raises concerns with this standard even if measures are taken.

This previous point also brings to mind that even if a charity can demonstrate that a related-party transaction is not a conflict, the public perception of such insider transactions are likely to be negative. This is why some charities avoid even the appearance of a potential conflict by not transacting with any board or staff member affiliated businesses or organizations.

Take a look at BBB charity reports to see if your charity of choice meets this important standard. For an A-Z directory of reports on nationally-soliciting charities, visit data-sf-ec-immutable=””>. To access both local and national charity reports, use the search engine on our homepage www.give.org.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance
July 17, 2020
Wise Giving Wednesday: Fraudulent Fundraiser for Military Family Vacations
On July 31, 2019 the FBI announced that a former resident of South Carolina was sent to federal prison for charity fraud involving a military theme. The organization known as Marines and Mickey promised to help send military families on vacations to Walt Disney resorts and to help pay travel expenses to see family members graduate from United States Marine Corps boot camps held at Parris Island, South Carolina and San Diego, California. As reported, almost half a million dollars was contributed between 2014 and 2016 and less than 20 percent of funds raised were actually used for the announced purposes. In addition, the Department of Justice release indicated that the president of the charity falsely represented himself as a retired career Marine Master Sergeant and Drill Instructor when in fact he spent less than five years in the Marine Corps and was given a Bad-Conduct discharge in 1998. The case was investigated by the FBI, the Naval Criminal Investigative Service and was prosecuted by the U.S. Attorney’s Office in Charleston, South Carolina.

Last year, the Federal Trade Commission, state Attorneys General and state charity regulators joined forces to help the donating public avoid misleading charity appeals and find trustworthy veterans organizations to support. The event was titled “Donate with Honor” and was held at the FTC’s headquarters in Washington, DC. The event announced over 100 enforcement actions involving veterans organization deficiencies ranging from misleading appeals to failing to register with the state government despite repeated requests by the state.

BBB Wise Giving Alliance offers donors the following tips to consider:
- Mistaken Identity: Watch out for name confusion. Many veterans’ charities include virtually the same words in different order or slightly different form.
- Check Outside Sources Before Giving: Visit Give.org to check out a charity’s trustworthiness by verifying that it meets the 20 BBB Standards for Charity Accountability. These standards address more than just finances; they also cover charity governance, results reporting, appeal accuracy, and donor privacy. Also, check with your state government’s charity registration agency, usually a division of either the attorney general’s office or secretary of state’s office.
- Avoid On-the-Spot Donation Decisions: Be wary of excessive pressure in fundraising. Don’t be pressured to make an immediate on-the-spot donation.
- Find Out What They Do: Don’t assume what the veterans organization does based on their name alone. Review the appeal carefully and see if it matches program and financial information appearing on the organization’s website.
- Recognize Telemarketing Cautions: Telemarketing can be a costly method of fundraising unless carefully managed. If interested in a call on behalf of a veterans’ charity, always check out the organization online before donating.
- Be Wary of Unusual Donation Transaction Options: Watch out if a charity solicitor asks for donors to send contributions using an unusual transaction method such as wire transfer, gift cards, or pre-paid debit cards. This could be a ruse to enable questionable solicitors to get funds quickly.
- Learn How Donated Items Will Be Used. If a veterans’ charity is soliciting for used clothing, cars, furniture and other in-kind gifts, find out how they benefit. Sometimes the charity receives only a small portion of the resale price of the item or may have a contractual arrangement to get a flat fee for every household pick-up, no matter what the contents.
- Seek Out Financial Information. Verify the accuracy of financial information in veterans’ organizations appeals. Check out the charity’s report on BBB’s Give.org or review the charity’s website for its latest financial information. The BBB Standards for Charity Accountability call for a charity to spend at least 65% of its total expenses on program service activities, as opposed to fundraising and administrative costs.
For more advice, see the cover story that appeared in our Wise Giving Guide magazine

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring Maya Ajmera, President and CEO, Society for Science and the Public (a BBB Accredited Charity) an organization that works to expand scientific literacy, STEM education, and scientific research. The organization also publishes Science News magazine, which includes science-related journalism, editorial content and educational products.

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
July 17, 2020
Wise Giving Wednesday: Building Trust Part 10
Charities both large and small have many things in common but one of the more important similarities is the presence of a charity’s website. For many donors and potential donors, this may be the first opportunity to see the organization describe what they do and provide fundamental facts to help visitors understand the organization’s mission, perspective and skills. Over the years websites have become the leading outreach vehicle for charities and are updated on a continuing basis to help maintain visitor interest and implement the latest design trends. And, most charity websites today either ask for donations or provide a link that enables visitors to make a gift with their credit card.

In terms of the BBB Charity Standards (Standard 17), we seek to verify that a charity’s website includes certain basic facts so that donors will be able to access fundamental information to help them make informed decisions. Oddly, one of the recommended information items that is sometimes hard to find is the charity’s address. In our view this omission is more inadvertent than intentional. Charity websites often enable visitors to send an email or other online communication that enables people to instantly send a message to the charity. But an address is important as it may help visitors identify the location of the organization. Donors may prefer to donate to charities close to their own communities. In turn, a charity website may even represent an organization that is located outside the United States. Unless identified, you really cannot assume where the organization resides.

Due its Internet availability on GuideStar.org and some state government agencies, the IRS Form 990, the annual financial form charities file with the IRS, has become a popular source of charity financial information. In view of this, Standard 17 calls for charities to provide a link to the IRS Form 990. Or, at a minimum, a properly labeled link to the page on the GuideStar site that provides access to the latest 990 it has filed.

Finally, Standard 17 calls for the charity’s website to include the same information recommended in annual reports (Standard 16). This charity does not need to produce a formal published annual report. Rather this part of the standard can be satisfied by having a page of the charity’s website that includes certain facts or links to pages that include this information:
- Charity’s mission
- Summary of accomplishments in the past year
- Board roster
- Financial information that provides total income in the past year, an expense breakdown (i.e., in the same program, administrative, and fundraising categories appearing in the financial statements) and ending net assets. Some charities provide their full audited financial statements, which provides mush mote than this requirement. But, at a minimum, we hope to see the specified information.
Websites have become a communication staple for charitable organizations. That is all the more reason that charities should keep in mind what facts they should be sure to include to help contributors, encourage trust and maintain good accountability practices.

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:
- CURE Childhood Cancer
- DoSomething
- Solve ME/CFS Initiative
- Wild Animal Sanctuary
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
July 17, 2020
Wise Giving Wednesday: Value of U.S. Volunteer Time
As reported by Independent Sector (a leadership network for nonprofits, foundations and corporations committed to advancing the common good) earlier this month, about 62.8 million Americans or 25.3 percent of the adult population, gave 7.9 billion hours of volunteer service worth $184 million in 2014. These stats were developed by the Corporation for National and Community Service. The estimated value of this volunteer time is $23.56 per hour. The states with the six highest values of volunteer time are the District of Columbia, Massachusetts, Washington, Connecticut, California and New York.

As organizations seek to make the best use of available resources, volunteering is being recognized as an increasingly important and valuable way of engaging supporters, particularly among Millennial donors who may not be able to make cash donations. As donors consider volunteer options for the charities they care about, we also urge them to verify the charity’s trustworthiness by accessing our reports to verify if it meets the BBB Standards for Charity Accountability.

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video featuring an interview with Peter Bale, CEO of The Center for Public Integrity (a BBB Accredited Charity.) The Center conducts nonpartisan, independent investigative journalism about money in politics, the environment, labor, juvenile justice, national security, business, and health.

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 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
July 17, 2020
Wise Giving Wednesday: Crowdfunding Tips
During the holiday season, as donors seek to assist those in need, some will be drawn to the requests for help appearing on Crowdfunding websites. Donors should keep in mind, however, that not all crowdfunding sites operate in the same way. Below are some tips excerpted from the crowdfunding cover story that appeared in a previous edition of the Wise Giving Guide magazine:

Charities can be checked Crowdfunding websites run by charitable organizations can provide opportunities to learn more about the organization’s programs, finances and whether they are registered to solicit with state government agencies. In addition, third-party sources such as reports on Give.org can help donors verify that the charities meet recognized standards.

Be especially careful after a disaster or tragedy Watch out for those seeking to take advantage of high public sympathy immediately after a disaster or tragedy by setting up a crowdfunding project that may have no official connection to any charitable organization and may be using names and photos of victims without the families’ permission.

Specialized crowdfunding sites may be more adept If a crowdfunding sites specializes in a particular kind of activity such as medical funding, school projects ( DonorsChoose.org ) or overseas development ( GlobalGiving.org ), there is a greater chance they will have the experience and skills to engage in more oversight over the featured projects.

Read the fine print Crowdfunding sites vary in terms of whether the donors or the project organizer will be charged for site administrative costs and credit card fees. If a project does not achieve its targeted fundraising goal, sites also vary as to whether the donation will be refunded.

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Besa Pinchotti, Communications Director of the National Military Family Association (a BBB Accredited Charity). The NMFA is an organization that works to strengthen and protect Uniformed Services families through its advocacy activities and programs that include spouse scholarships, camps for military kids, and retreats for families reconnecting after deployment and the families of the wounded, ill and injured.

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 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
July 17, 2020