Format: Article

Wise Giving Wednesday: Schools & Fundraising
Children return to schools around the country as we approach the Labor Day holiday. To many parents, this means more than just new backpacks, books and boxes of pencils. They may also be asked to help raise money for school needs such as special class projects or gaps in overall funding. These events can take a variety of formats such as bake sales, selling candy or holding an auction.

For those seeking to take steps for having a well-managed and accountable fundraising efforts, here are some tips:
- Make sure specific plans and goals are in place. What is the activity that is being supported through these donations? Is there a target dollar amount that is seeking to be raised?
- Are the parents provided with letters or online communications that introduce the fundraiser and explain how it will be conducted?
- Will someone be in charge for keeping track of volunteers and making arrangements for how funds will be recorded and collected?
- Will fundraising volunteers and participants be kept informed about how much was raised?
- Will thank you notices be sent to all contributors?
There are also online alternatives for teachers seeking to raise money for classroom projects or other needs, they can consider posting a request on DonorsChoose.org which helps teachers across America post classroom project requests so individuals can provide funding.

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video of Ron Carter, President & CEO, Children, Incorporated (a BBB Accredited Charity) which seeks to improve children’s lives through greater access to education and basic needs assistance. The organization aims to provide children opportunities to learn skills that will one day help them to be able to support themselves and become contributing members of their communities. CI partners with existing organizations in each country or area in which the organization works, and those organizations appoint volunteer coordinators to manage and oversee CI’s child assistance efforts.

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 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: Fundraising Events for Hurricane Florence Disaster Relief
Last week we provided advice for donors about Hurricane Florence relief. While Hurricane Florence has passed, many of the areas impacted by flooding from the storm are still under water. As there is still a need to raise funds for recovery, we will likely see a variety of fundraising events seeking to help homes and businesses that have been severely damaged. As these activities emerge, we offer the following to help avoid some of the common fundraising mistakes made in the wake of disasters.

Fundraisers Should Seek Permission to Use the Disaster Relief Charity’s Name. Musicians, television stations, businesses or other groups that decide to hold some type of fundraising event to raise money should get permission, in writing, to use a specific charity’s name before holding the event on their behalf. In most cases, these names are service-marks owned by the subject charity. In addition, the charity will likely have certain requirements to help protect the charity’s brand image and to help ensure that potential donors are properly informed about how the money will be used.

Ticket Sale Disclosures on Deductibility. If the fundraising event involves selling tickets to a concert or other performance, the IRS has certain disclosure rules for sales exceeding $75. That amount triggers the IRS requirement to provide a written disclosure that identifies the amount of the sale that exceeds the fair-market-value of the item. Only that portion is deductible as a charitable gift for federal income tax purposes. For example, if the show sells benefit tickets for $125 each for a performance that would normally sell for $100 each, then only $25 of the purchase is deductible.

Watch Out for 100% Claims in Fundraising Event Promotions. It costs money to raise money. All fundraising events will incur some expenses. Even a credit card transaction will incur a processing fee. If a disaster fundraising event is stating that 100% of collected funds will go to the charity, watch out. The promotion may either be misleading or omitting a material fact. If someone else is covering the expenses to hold the event, the organization should take the initiative to explain the circumstances in the promotion.

Cause-Related Marketing Disclosures. Another popular fundraising alternative in the wake of a disaster is for a business to sell consumer items (ranging from t-shirts to canned goods) with the announcement that the purchase will help a specified disaster relief charity. If so, BBB Charity Standards require that the promotion disclose the actual or anticipated portion of the purchase price that will go to the charity (and, if applicable, the term of the campaign and any maximum or guaranteed minimum contribution amount). The business should also have a written agreement with the charity that gives them permission to use the charity’s name in this sales context.

Transparency on Results. Disaster relief fundraising events usually generate significant public attention. It is best to be transparent and post results about how much was raised, expenses incurred, and the resulting amount provided to the charity. This openness is expected by donors and will help strengthen trust for any subsequent or similar events held.

For more information on Disaster Relief fundraising issues, view the following IRS Publication: https://www.irs.gov/pub/irs-pdf/p3833.pdf

Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a video of Carolyn Aldige’, Founder and CEO, Prevent Cancer Foundation (a BBB Accredited Charity) which provides support for cancer research, education, community outreach, and advocacy. The organization reports that it provides funding for cancer prevention research and training to more than 450 scientists across the country. PCFs public education program applies this scientific knowledge to inform the public about ways they can reduce their cancer risks. The organization reaches the public through exhibits, distribution of materials, its relationship with the media, and through educational conferences for professionals in the cancer field.

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: Happy New Giving Year
As we celebrate the start of a new year and make plans and resolutions, we also have an opportunity to strengthen and revise our giving decisions. To help address this objective, we offer the following advice.

Charities Need Help Year Round. There is a tendency for some to concentrate their giving during the last quarter of the year, the giving season. While charities appreciate this generosity, most organizations need assistance throughout the year. Keep this in mind as you make your donation plans.

Don’t Forget Disaster Relief Services. From hurricanes to tsunamis, 2018 experienced a number of natural disasters. Please remember that in addition to immediate assistance, some disaster service organizations are addressing long term recovery goals as well. Please remember these groups as you make your 2019 giving plans.

Tax Law Changes. Become familiar with the changes in the U.S. tax regulations that could impact charity deductions. For example, some charities are concerned that the increase in the standard deduction for individuals and families could impact the motivation for some households that would normally seek a tax deduction for their donations, but now may now opt for the larger standard deduction. Charities are looking closely at their 2018 contribution totals to see if there has been any resulting reduction in 2018 giving due to this tax change.

Time to Make the Best Decisions. Avoiding the last minute rush at end-of-year giving also provides the opportunity to take more time to ensure that the charities you choose are trustworthy and meet the 20 BBB Standards for Charity Accountability. Visit our charity reports at Give.org.

Focused Giving. While some donors prefer to spread their donations to a variety of charities addressing different causes, others may seek more focused giving by identifying a specific issue or concern and focusing their giving on groups that address that issue. Whether or not you decide to focus your giving, planning ahead provides the opportunity for making such a choice.

For additional giving advice visit the BBB Wise Giving Alliance website at Give.org.

Video of the Week

Roxane Rucker, VP of Community Impact at KaBOOM! (a BBB Accredited Charity) shared her thoughts on donor trust, donating to charities working in a donor’s community and minority donor openness to solicitation.

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
Earthquake Relief Donations for Puerto Rico

Last Tuesday, a 6.4 magnitude earthquake hit Puerto Rico which already was struggling to rebuild after the devastation caused by Hurricane Maria in 2017. This has resulted in widespread structural damage to buildings and initial power outages. There were also reports that some did not have water service. While power has been restored to most areas, Puerto Rico is still receiving significant aftershocks including a significant quake that took place this past Saturday. As reported in the New York Times, Tuesday’s earthquake resulted in an estimated $110 million in damages.

A number of charitable organizations are working to help those impacted by this quake and, in some instances, groups have been working in Puerto Rico since Maria struck two years ago. BBB Wise Giving Alliance recommends contributing to experienced organizations that meet the 20 BBB Standards for Charity Accountability, particularly in the wake of disasters. Newly established entities may be well-intentioned but may not have the skills and infrastructure to provide immediate help. Visit Give.org to access reports on these and other charities.

In regards to postings appearing on crowdfunding sites, BBB WGA cautions potential contributors to carefully consider the site’s terms and procedures to find out whether there has been any vetting of posted requests, if the posts clearly describe the intended use for funds, and what processing fees may be subtracted by the site when donations are made. Also, don’t assume pictures of victims appearing in a posted request are used with permission of the respective families.

United States-based charities. There are a number of U.S. based charities that are accepting funding to address the earthquake in Puerto Rico. In the following list, the first link connects with a page on the charities website that describes its activities in Puerto Rico, the second links directly to a report that shows the charity is BBB Accredited (i.e., meet the 20 BBB Standards for Charity Accountability.)

American Red Cross (a BBB Accredited Charity)
Americares (a BBB Accredited Charity)
Brother’s Brother Foundation (a BBB Accredited Charity)
Direct Relief (a BBB Accredited Charity)
GlobalGiving (a BBB Accredited Charity)
Heart to Heart International (a BBB Accredited Charity)
Hispanic Federation (a BBB Accredited Charity)
International Medical Corps (a BBB Accredited Charity)
Islamic Relief USA (a BBB Accredited Charity)
Mercy Corps (a BBB Accredited Charity)
Salvation Army (a BBB Accredited Charity)
Save the Children (a BBB Accredited Charity)
United Methodist Committee on Relief (a BBB Accredited Charity)

Canadian-based charities: If you are considering donating to a Canadian-based charity, there is a list of Registered Charities provided by the Government of Canada, which can be found here. While the registration with this government agency does not mean the government is recommending or endorsing the charity, it does signify that the group has filed the appropriate paperwork with this agency.

July 17, 2020
Wise Giving Wednesday: When appeals claim a donation can double a charity’s impact
In the past twenty years, the issue of a charity’s impact has received increased attention for a variety of reasons. Some define impact as how well a charity has been addressing its stated mission, while others have different interpretations. Some donors, such as private foundations, are seeking to identify how their generosity has made a difference in addressing a specified issue or cause, while other contributors may be seeking reassurance, beyond just dollars and cents, that charities are fulfilling their philanthropic role. Impact is challenging to assess due to the diversity of charity goals and the many possible influences on any desired outcome. We sought to address this subject ten years ago collaborating with Independent Sector and GuideStar (now known as Candid) to create Charting Impact – a series of five questions that charities can answer to help describe their achievements. We felt this was the right path to help move charities to recognize the importance of outcomes (e.g., the reduction of poverty or improved treatment for diseases) rather than outputs (e.g., the number of meals served or people helped.)

We now see the word “impact” being used in some charity appeals, not as a means to discuss outcomes or even outputs, but as a way to announce that a donor’s gift can result in a dollar amount that is twice the size due to a promised match from a third party. Some of these are quite sensational with declarations such as “Matching Drive – Double the Impact” or “Your Donation + Matching Gift = Double the Impact!” to entice a donor to make a contribution. While these charity appeals may be well intentioned, they could add to the confusion about the meaning of impact. The amount a charity raises may or may not lead to greater mission impact. If anything, dollars raised is an input along a continuum to impact.

Our advice to donors is to distinguish between claims of impact based on money and focus instead on what the charity does with the money. When promises about a charity’s impact are being made in appeals, the charity may be using that word as a way to talk about total gift size, rather than program results. We urge charities to define such terms in appeals, or consider not using them at all to avoid even the possibility that contributors will be misled into believing something that may not be true.

Video of the Week

The BBB Wise Giving Alliance is proud of our network of trusted accredited charities, which are rising to the challenge of dealing with the COVID-19 pandemic in innovative ways to safely serve us all. This week, Art Taylor speaks with Rene Gellerman, President and CEO of United Way Quad Cities (a BBB Accredited Charity), about delivering programs during this challenging time

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 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
Helen O’Rourke McClary

Helen O’Rourke McClary, who helped establish and grow one of our predecessor organizations, the Philanthropic Advisory Service of the Council of Better Business Bureaus, passed away on October 22, 2015. She served as Vice President of CBBB’s Philanthropic Advisory Service from 1971 to 1986 and was instrumental in the development of the early versions of our charity accountability standards and helped bring national attention to the importance of transparency for charitable organizations. We are grateful for her legacy and saddened to have lost a good friend.

http://www.pineisland-eagle.com/page/content.detail/id/530146/Helen-Lee-O-Rourke-McClary.html?nav=5052

July 17, 2020
Wise Giving Wednesday: Charities and Data Privacy Day
January 28, 2016 is Data Privacy Day which commemorates the signing of Convention 108, the first legally binding international treaty dealing with privacy and data protection. Although this day has been recognized in the U.S. and Canada since 2008 and in Mexico since 2015, most donors probably don’t associate this data issue with charities. Contributors might be thinking of online retail credit card security, medical office records, or banking information. The reality is that data privacy is relevant to all websites, including those of charitable organizations. Charity websites can collect data not only through online donation collections but also through online message exchanges with visitors, electronic newsletter distributions, and online sales of books or other items.

In fact, respecting online privacy and safeguarding data are key elements in helping to verify charity trustworthiness. That’s why they are addressed in Standard 18(b) which calls for all charity websites to have a privacy policy that addresses the four fundamental privacy concepts of notice, access, choice and security. To learn more about this standard and how it is applied view the text and explanations of the BBB Standards for Charity Accountability and see one of our previous Wise Giving Wednesday previous blogs that talks about this standard.

I also want to call your attention to a recording of a panel discussion, “ Cybersecurity Planning for Nonprofit Leaders” presented by the BBB Foundation of Metropolitan New York. There is no cost to access the video, which includes, among others, experts from IBM Corporation, PricewaterhouseCoopers LLP, and Goodwill Industries of Greater New York and New Jersey.

Finally, BBB has a special website that, although focused on business cybersecurity, includes helpful suggestions that charities can adopt as well – a 5-step approach to cybersecurity that calls for such things as taking inventory of key technologies being used, assessing what protective measures you need and can afford and placing measures in place to alert you to current and imminent threats.

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Johannah Barry, President of the Galapagos Conservancy (a BBB Accredited Charity). The Conservancy is a United States based organization that works to conserve marine and terrestrial ecosystems and their flora and fauna in the Galapagos Islands.

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
Do People Trust Charities? Study by BBB’s Give.org Uncovers Pitfalls

Public Misconceptions Make Donors Vulnerable and Can Lead to Faulty Giving Decisions

Arlington, VA (October, 25, 2018) – Most people say trust is important before donating to charity, but fewer than one in five adult Americans say they “highly trust” charities, according to new research from BBB’s Give.org. The group today released the Give.org Donor Trust Report: An In-depth Look into the State of Trust in the Charitable Sector. The report, a survey of 2,100 adults in the United States, explores donor beliefs, feelings, and behavioral intentions related to charity trust and giving.

While the majority of respondents (73 percent) say it is very important to trust a charity before giving, only a small portion of respondents (19 percent) say they highly trust charities and an even smaller portion (10 percent) are optimistic about the sector becoming more trustworthy over time. The research was first reported in The Chronicle of Philanthropy.

For a free copy of the report, go to Give.org/DonorTrust.

“We rely on charities to solve some of society’s most challenging problems and it is startling to learn only a small percentage of Americans highly trust charities,” said H. Art Taylor, president and CEO of BBB’s Give.org, “This report shows the need to strengthen public trust in the charitable sector, and reminds us that the ability of charitable organizations to thrive in the future is closely tied to their ability to understand how rising – and more diverse – generations think about trust, engagement and generosity.”

According to the report, minorities and younger generations are particularly vulnerable because they are more likely to rely heavily on engaging stories and perceived sincerity and passion in a charity’s appeal when making giving decisions. According to the report, 32% of Millennials (ages 20-36) and 45% of Generation Z (ages 18 and 19) respondents say passion and sincerity is a top perceived signal of trust, as compared to only 9% of Matures (ages 72-89). In addition, racial minorities and younger generations are more likely to perceive verifying trust in a charity as “easy,” suggesting that these groups are less likely to take the extra step to vet a charity before giving.

The Give.org Donor Trust Report offers a macro-level view of the state of public trust for the charitable sector as a whole and for specific charity types. Other themes covered include: triggers of trust at the individual donor level, presentation of donor attitudes along generational and racial lines, and shifting views about generosity more broadly.

BBB’s Give.org urges donors to give thoughtfully by taking the time to look into charities before making a donation and to visit Give.org to verify if a charity meets the 20 BBB Standards for Charity Accountability.

About BBB Wise Giving Alliance:

BBB Wise Giving Alliance (BBB’s Give.org) is a standards-based charity evaluator that seeks to verify the trustworthiness of nationally-soliciting charities by completing rigorous evaluations based on 20 holistic standards that address charity governance, results reporting, finances, fundraising, appeal accuracy and other issues. National charity reports are produced by the BBB WGA and local charity reports are produced by local Better Business Bureaus – all reports are available at Give.org.

ABOUT BBB:

For more than 100 years, the Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2017, people turned to BBB more than 160 million times for BBB Business Profiles on more than 5.2 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation.

MEDIA CONTACTS: For more information, journalists should contact Katherine Hutt (k hutt@council.bbb.org) or Bennett Weiner (703-247-9323 or bweiner@give.org)

July 17, 2020
Wise Giving Wednesday: October is Breast Cancer Awareness Month
October is Breast Cancer Awareness Month. These events, which have taken place for several decades, have helped raise funds for numerous charities seeking to address breast cancer in a variety of ways: through medical research, assistance in treatment and prevention education activities. When contributing, take the time to learn about the various ways charities work to address this important cause. The name alone won’t always reveal what the organization does.

One very popular means of raising funds during this awareness month is through cause-related marketing. This is when a promotion announces that the purchase of a good or service is assisting breast cancer organizations. If so, see if the ad mentions the specific charity that will be helped. Also, BBB Charity Standard 19 calls for such promotions to disclose, at the point of appeal, the actual or anticipated portion of the purchase price that will benefit the charity, and if applicable, the duration of the campaign and any maximum or guaranteed minimum contribution amount. For example, “5 cents for every abc product sold in October will go to xyz charity up to a maximum of $100,000.” Be wary of promotions that state breast cancer charities will be assisted but are not very transparent about specifics.

To help identify trustworthy breast cancer organizations, we encourage donors not only to be mindful of BBB Charity Standard 19. Visit Give.org to find out if the charity meets all of 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 that features Ellen Willmott, Interim CEO of Susan G. Komen (a BBB Accredited Charity), whose mission is to end breast cancer through funding research. In addition, the organization offers assistance to those facing the disease by funding screenings, education, and treatment and support programs.

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: Sexual Harassment and Charities
On Monday, we released the Give.org Donor Trust Special Report: Sexual Harassment and the Charitable Sector. The report provides the results of a survey of 2,100 adults across the United States and more than 1,000 adults in Canada, exploring how donors react to allegations of sexual harassment involving a charity or house of worship. As featured in The Chronicle of Philanthropy, survey findings confirmed that donors care about this issue, with 22% of donors who heard such allegations reporting that they no longer contribute to the organization and another 17% reporting a reduction of support.

Donors who maintained support for a specific charity or house of worship after learning about sexual harassment allegations most frequently stated that “the actions of a few bad actors do not represent the organization as a whole” as the reason to continue giving. But, while sexual harassment can occur at any organization, well-governed charities can build cultures that do not tolerate sexual harassment, be prepared to react in a timely and appropriate fashion, and openly communicate with their donors about any issues and solutions. Also, it appears that many donors are willing to resume support for the charity or house of worship after proper corrective actions are taken. When asked about the hypothetical example of a charity taking action to address a sexual harassment problem, 38% of U.S. participants say they would resume normal levels of support as soon as they believe the charity reacted appropriately.

As an issue of good governance, charities must strengthen their cultures so that sexual harassment is clearly understood and never tolerated, and they must be prepared to react in a timely and appropriate fashion. To maintain donor trust, charities should also be prepared to openly communicate with their donors about the issues and any implemented solutions.

Video of the Week

This week, we are featuring an interview with Alice Thomas, Executive Director of Central Asia Institute (a BBB Accredited Charity) where she discusses the goals of the organization and challenges it faces including those caused by the pandemic.

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