Format: Article

Earlier this year, Wise Giving Wednesday featured a news item about an alleged fundraising fraud involving the use of a photo of a boy fighting cancer. When we hear about things like this, our heart sinks and we wonder how someone can commit such an unconscionable act in the name of philanthropy. 

This previous story also brings to mind the power that pictures have to motivate many to give.  They grab our attention and can bring an emotional response: a suffering child, an abused animal, a refugee camp, or an area devastated by natural disaster. The vast majority of appeals today whether online or in your mailbox will include one or more photographs or pictures to help illustrate the problem or issue that the charity is seeking to address. Recipients may not review all the solicitation copy, but they all see the pictures. 

The potential power of photos is all the more reason we believe that charities need to make sure that they are making accurate use of them. For example, if an appeal includes a picture of a child assisted by the charity, readers will likely assume that it is a relatively recent photograph unless told otherwise. If, for some reason, a photo is more than three years old, we believe the fundraising copy should note its age. When old photos appear in appeals, it does not necessarily reflect an intent to deceive. Rather, a charity may decide to reuse all or part of a successful fundraising letter long past the time it was first distributed, and may inadvertently distribute photos past their prime. 

Another potential problem that can occur is the use of photos of past similar events – such as an earthquake or a hurricane. Again, unless told otherwise, potential donors will assume the pictures they see displayed in appeals reflect the current natural disaster and not a past one.  Relief organizations should properly identify photos if they are not depicting the specific tragedy described in the solicitation.  

BBB Charity Standard 15 calls for solicitations and informational materials, distributed by any means, to be accurate, truthful and not misleading, both in whole and in part.  If appeals include outdated photos that are represented as being current, the charity will not meet this standard. 

As part of our Building Trust Video series, we are pleased to provide a video that features Ambassador Daniel Speckhard (Rt.), President & CEO, Lutheran World Relief (a BBB Accredited Charity) which works to improve the lives of smallholder farmers and people experiencing poverty in Africa, Asia and Latin America, both in times of emergencies and for the long term. The organization reports that, with the financial support of US Lutherans and other donors, it strengthens communities to achieve lasting results through programs in agriculture, climate, and emergency operations. 

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: 

• Mothers Against Drunk Driving
• Prostate Cancer Research Institute
• Waterkeeper 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

In 2014, the IRS introduced a new, simpler application form for charitable tax-exempt status – the IRS Form 1023-EZ.  Some were apprehensive about making it easier to obtain charitable-exempt status in view of the existing 1.2 million charities in the United States. Instead of a 28-page application form, the three-page EZ version was now available for groups with annual gross receipts of $50,000 or less.  (In fairness, the IRS has a seven-page eligibility worksheet that must be reviewed to determine if the EZ Form is applicable.) As reported in The Chronicle of Philanthropy, for the fiscal year ended September 30, 2015, the IRS approved over 86,000 applications for 501(c)(3) charity status.  Prior to 2013, the annual volume of approved applications was below 50,000 new groups. 

As if the new charity floodgates were not open wide enough, however, the IRS recently announced that effective July 1, 2016 the user fee to process the IRS Form 1023-EZ was decreased from $400 to $275.  While it is too soon to tell how much this reduced fee will further impact the increasing volume of new charities, it is good bet that it will not be a deterrent. 

On the other hand, some view the size of the American charitable sector as an asset in terms of helping to generate new ideas and approaches to the growing needs and challenges charities face each day.  For donors, however, the challenge they face is in making informed giving decisions about new charities that have no track record or experience. 

Many of the items included in the 20 BBB Standards for Charity Accountability cover recommended practices that are applicable to even new organizations such as:  including clear program descriptions in appeals and on its website, having an adequate board size, not having the CEO also serve as board chair, not engaging in transactions with board or staff-member related firms that result in a conflict of interest, having a board-approved budget that identifies projected expenses on programs, fundraising and administrative expenses, and including a privacy policy on the charity’s website. 

As the volume of new charities continues to increase, the BBB Charity Standards can provide guidance that can help these organizations avoid accountability pitfalls while also being transparent to donors.

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Barry Lynn, Executive Director of Americans United for Separation of Church and State (a BBB Accredited Charity) which seeks to preserve the separation of church and state through litigation, advocacy, and educational 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. Our recently evaluated charities include: 

• Advancing Native Missions
• Partners in Health
• World Hope International 

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

Growing up in the South Philadelphia area, one of my earliest experiences with a chartable organization was with the local YMCA as explained in a previous Huffington Post piece that I wrote two years ago about “Giving Back.”  The lessons learned from that experience shaped my initial understanding of philanthropy and its important role in society in providing help and hope to those in need. Most everyone has their own introduction to charity at an early age ranging from class projects to support an identified organization, the “Trick-or-Treat for UNICEF” campaign during Halloween, donating used clothing to neighborhood organizations or helping a house of worship raise funds to assist a family in trouble due to a fire or other tragedy. 

While the desire to help others resides within everyone, the changing culture and technology can influence how younger generations learn to express such feelings. The interest in reaching out is still there but there are so many more options today for those seeking to assist. We can encourage acquaintances to support a favored group via our Facebook connections, visit a crowdfunding site to donate to an individual’s requested needs or challenge friends to pour a bucket of ice on our heads and support the ALS Association. The variations of youth philanthropy today are as varied as websites on the Internet. 

This growing diversity of youth philanthropy also provides an opportunity – a chance to spread the word about the significance of verifying the trustworthiness of supported groups to help ensure that the good results we seek are carried out with responsibility and good stewardship. Youth today are already exposed to a variety of advisories about the importance of good nutrition, health and education. Responsible philanthropy is not that much of a leap from those other encouragements.  We hope that young contributors also take the time to use the resources on Give.org to learn about good charity practices and whether their selected charity is meeting them. 

As part of our Building trust video series, we are pleased to provide our short interview with Kevin Washington, President and CEO of YMCA of the USA (a BBB Accredited Charity) who speaks about programs that influence and shape young people.  YMCA of the USA serves as the national resource for the Y to strengthen its member associations ability to effectively carry out the YMCA mission in their communities. 

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:

• CRISTA Ministries
• Forward Edge International
• TechnoServe 

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

Even though charity is quite broad in the scope of activities falling under its definition, when we hear the word “charity,” most of us first think of helping those in need.  At its core, that objective is about fighting poverty, which by its nature, is a complex issue that is impacted by a range of contributing factors.  To some, it might be unemployment or the ability to make ends meet in minimum wage jobs.  To others, it’s about the challenges of illiteracy or the lack of adequate education. While the list of potential causes is almost endless, we are encouraged by the promise of assistance that so many charities provide in communities across the country and around the globe. 

No one organization can address all the ills that poverty brings, but charities devoted to this mission do their part to help alleviate some of poverty’s persistent problems, one person at a time, through a variety of means: 

• Malnutrition:  Food banks, meal delivery services, and other food distribution organizations help provide access to adequate nutrition for individuals as well as their families
• Unemployment: Job training programs help prepare individuals for new careers
• Education: Literacy programs range from children’s book distributions to teaching programs helping incarcerated adults
• Health: Health care access programs reach out to those who are unable to afford the care they need
• Homelessness: From homeless shelters to soup kitchens, a range of organizations are seeking to help the homeless population each day 

In turn, no one donor can solve poverty by an individual gift, but one can make informed choices by making sure the organization’s program activities are clearly described on both their websites and in appeals. And, by visiting Give.org, one can verify the trustworthiness of the charity by seeing if they meet the 20 BBB Standards for Charity Accountability. 

On a related noted, as part of our Building Trust Video series, we are pleased to provide a video of David Barringer, CEO, National Council of the U.S. Society of St. Vincent de Paul (a BBB Accredited Charity) which seeks to help millions of people each year through home visits, housing assistance, disaster relief, job training, food pantries, clothing, care for the elderly, and other charitable activities. 

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: 

•   Alaska Conservation Foundation
•   Law Enforcement Legal Defense Fund
•   Truth for Life 

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

The horrible terrorist attack that occurred in Brussels on March 22 ^nd has stirred our hearts and has motivated some donors to do what they can to help the victims.  After a tragedy or disaster, crowdfunding sites are usually one of the first to post requests to assist victims and their families.  However, we caution potential contributors to keep the following cautions in mind.

1. Watch out for those seeking to take advantage of high public sympathy immediately after a tragedy.  A crowdfunding request may have no official connection to the victims, their families and/or may be using photos of victims without the families’ permission.
2. Don’t assume that the crowdfunding site has vetted any postings for assistance.  Each site has its own process for posting requests and some may not require anything more than a Facebook page and PayPal account.
3. If the crowdfunding request is claiming to be raising funds to pass along to an established charity engaged in victim relief, consider giving to the charity directly as crowdfunding sites can charge fundraisers anywhere from 4% to 20% of the total amount donated.  Also, check out established charities on Give.org to verify if they meet the 20 BBB Standards for Charity Accountability .
4. When tragedy strikes overseas, foreign-based charities will likely be engaged in providing help to victims.  Keep in mind it will be more difficult to check out such organizations. However, the charity’s website should provide some level of transparency on their operations, finances and governing board oversight.  If interested in supporting such groups, find out if they have an American based affiliate that is eligible to receive donations on their behalf.
5. If the crowdfunding collection is raising funds to help specific named victim(s)or their families, contributions may not be deductible as charitable gifts for federal income tax purposes.  (See IRS Publication 526.)  Also, contributions to foreign-based charities are generally not deductible as well.

As always, donors will have many opportunities to help. Don’t assume that the needs of victims disappear when the headlines do.

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 that has not been evaluated by us and we will do our best to produce one.

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

For the past 18 years, Edelman, a global communications marketing firm, has produced a Trust Barometer that involves an online survey of over 33,000 people in 25 countries (1,150 per country) that, among other things, asks participants how much they trust institutions (nonprofits, business, government and media) to do what is right using a nine point scale. The latest Edelman Trust Barometer released in January 2018 shows that overall trust dropped to 43 percent in the U.S. which represents “the largest-ever recorded drop in the survey’s history among the general population.” 

In terms of trust in nonprofit organizations, among the adult (18 years or older) general population, the trust percentage dropped nine points from 58 percent in 2017 to 49 percent in 2018.  In terms of just the informed public (ages 25-64, college educated, significant media consumption, and in top 25% of household income), trust in nonprofits dropped even more – 22 points – from 73 percent in 2017 to 51 percent in 2018. 

Although the statistics for nonprofits were generally higher than those for business, government, and media, this still demonstrates a significant loss of confidence in nonprofits in the United States.  On the positive side, when U.S. participants were asked which institution is most likely to lead to a better future, nonprofits scored highest at 29 percent, followed by business 22 percent, government 15 percent, and media 8 percent. 

(For those seeking information on public trust in business, see the BBB Trust Sentiment Index℠ released in October 2017). 

While it may be challenging to determine all the major factors that led to the referenced drop in trust, we encourage donors to verify the trustworthiness of charities by visiting Give.org to identify which organizations meet the 20 BBB Standards for Charity Accountability.   

Video of the Week 

As part of our Building Trust Video Series, we are pleased to provide a video featuring Andrew Rosen, President, Angel Foundation (a BBB Accredited Charity) which works with adults with cancer and their families by reducing the financial strain of living with cancer through the organization’s financial assistance program.  

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:

• Easterseals
• HealthWell Foundation
• International Fellowship of Christians and Jews 

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