Format: Article

BBB Tips to Ensure Wise Giving on Memorial Day
Arlington, VA – On Memorial Day, the holiday that seeks to pay tribute to those who gave their lives serving in the military, many of us will pay respects to those who died by responding to requests for donations by veterans and military-affiliated organizations. “As with any charity appeal, we urge donors to exercise caution and do some research before making a giving decision,” recommends H. Art Taylor, President and CEO, BBB Wise Giving Alliance, “Donation requests by veterans groups are high around the Memorial Day holiday.”

As potential donors respond to appeals from such organizations, the BBB Wise Giving Alliance offers the following advisory tips:
- Mistaken Identity: Watch out for name confusion. Many veterans charities include virtually the same words in different order or slightly different form.
- Clear Program Description: Look for a clear description of the organization’s programs in its appeals and on its website. If it says it is helping veterans, does it explain how (financial assistance, shelter, counseling) and where it is doing so?
- Telemarketing Cautions: Telemarketing can be a costly method of fundraising unless carefully managed. If called, do not hesitate to ask for written information on the charity’s programs and finances.
- On-the-Spot Donation Decisions: Be wary of excessive pressure in fundraising. Don’t be pressured to make an immediate on-the-spot donation. Charities should welcome your gift whenever you want to send it.
- Donating Used Clothing and Other Goods: Find out how the charity benefits from the collection and resale of used clothing and other in-kind gifts. 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.
- Check with Outside Sources Before Giving: Visit Give.org to check out a charity’s trustworthiness by verifying if it meets the 20 BBB Standards for Charity Accountability. Also check with your state government’s charity registration agency, usually a division of the attorney general’s office.
ABOUT BBB WISE GIVING ALLIANCE
BBB Wise Giving Alliance (BBB WGA) 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, effectiveness 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, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2015, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org.
July 17, 2020
BBB WGA Urges Vigilance Following Government Settlement with Cancer Charities

Arlington, VA, March 30, 2016 — Following a settlement today with the FTC, all 50 states, and the District of Columbia that dissolves two fraudulent cancer charities, the Cancer Fund of America and Cancer Support Services, the BBB Wise Giving Alliance (BBB WGA) urges donors to remain vigilant in researching charities before donating to avoid charitable scams. The Cancer Fund of America and Cancer Support Services will be forced to dissolve and its leaders will be banned from working for nonprofits moving forward, as part of today’s settlement.

“The Cancer Fund of America and Cancer Support Services swindled donors and broke the trust of the public,” said H. Art Taylor, president and CEO of the BBB WGA. “While we’re pleased to see these organizations shutter their doors, unfortunately this isn’t a unique case and it should serve as a strong reminder to donors to stay vigilant when donating. BBB WGA is committed to helping donors avoid questionable charities by providing easy to use reports for quick reference before giving. Both the Cancer Fund of America and Cancer Support Services did not disclose information to BBB WGA, which could have been an early red flag. Charities that do not disclose information to BBB WGA are simply not invested in helping donors make wise giving decisions.”

Following the closing of the Cancer Fund of America and Cancer Support Services, BBB WGA provided three key tips to avoid future deception:

Research before giving. Use the easy-to-read reports at Give.org to verify the trustworthiness of a charity. Find out whether the charity meets the 20 BBB Standards for Charity Accountability.

Evaluate what information you’re asked to give. If the information you are being asked to share seems odd, it probably is. Don’t feel pressed to give information or an immediate donation. A credible organization will not pressure you.

Find the best way to give. Charities often value the donation of time in addition to monetary donations to keep providing their services.

In 2015, BBB WGA joined the Federal Trade Commission (FTC), State Attorneys General, and State Charity Regulators to help donors avoid questionable fundraising. The FTC and State Attorneys General announced a major action against three national charities, Cancer Fund of America, Children’s Cancer Fund of America, and Breast Cancer Society due to severe transgressions in the organizations’ fundraising, financial reporting, and board oversight.

About BBB Wise Giving Alliance:

BBB Wise Giving Alliance (BBB WGA) 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, effectiveness 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.

July 17, 2020
Wise Giving Wednesday: Syrian Refugee Relief

Fleeing an area of conflict with just the clothes on your back and what you can carry is a nightmare none of us ever want to experience. So when media attention is drawn to refugees from Syria pouring into other countries, it is not surprising this has prompted many to make donations to assist those in need. To help contributors identify relief organizations that are addressing various health, nutrition and related needs of refuges, BBB Wise Giving Alliance has complied a list of such relief organizations that meet all 20 of the BBB Standards for Charity Accountability. We urge donors to exercise caution in responding to online giving requests or solicitations from unfamiliar organizations. For additional advice, see the press release we sent out yesterday. Sadly, this refugee problem did not emerge overnight but has been building over a number of years. In turn, the needs won’t disappear when the stories are no longer in the headlines. So keep in mind there will be continuing opportunities to provide help in the months to come. On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Jennifer Windsor, CEO of Women to Women International (a BBB Accredited Charity). This organization was founded twenty years 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.

Finally, remember to let us know by going to https://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: Signals of Trust for Charities
If you were to meet an individual for the first time, what signals would help you determine if you should trust them? There are many potential influences, including what they say, their expression, tone of voice, and body language. Any single one of these areas that struck you as unusual could make you uneasy. Experience helps train us to pick up on these signals. In some cases, you may not be aware what is out of place but your instincts are telling you something is off.

If you were considering a charity for the first time, what signals would help you determine if you should trust them? This is a more complex question. Experience alone will not necessarily train us to make that judgment. In turn, some of the signals we use to verify trust in a business (such as the volume and nature of customer complaints) are not usually applicable to charities that are asking for donations rather than selling goods or services.

This trust verification gap for charities led to the need to develop tools, such as the BBB Standards for Charity Accountability, that help donors make more informed giving decisions. These Standards were developed with the help of the charitable community, regulators, accountants, foundations and other experts in philanthropy. Survey research and reactions to exposure drafts and related discussions were all considered in producing them. And, just like trust signals for individuals, charity standards signal important donor considerations but no single standard is enough to make a complete assessment. Areas covered include, but are not limited to: adequate board oversight of operations, how funds are spent, appeal accuracy, accomplishment reporting and transparency.

Unfortunately, some donors will rely on potential false signals of trust such as popularity (i.e., how high a charity appears on a search engine). Popularity, however, can exist for both good and controversial reasons. In turn, over-emphasis on a single factor, such as charity financial ratios, can lead donors down the wrong path. While ratios can help identify outliers, such as those that spend most of their contributions on fundraising, they are less helpful in other circumstances. (See the Overhead Myth for more information on this point.)

In our view, it is best to use a variety of signals, such as those covered by the 20 BBB Charity Standards, that provide a holistic approach to trust verification. As a unit these standards, produced in an open and intensive process, provide an experienced and tested guide that can help strengthen charity practices while helping donors make informed giving choices.

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide an interview featuring Miki Jordan, President & CEO of Wayfinder Family Services (a BBB Accredited Charity), previously known as Junior Blind of America, which offers services for individuals of all ages with vision loss and, often, additional disabilities through the organization’s early intervention, education, recreation, mental health, workforce readiness and rehabilitation services.

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: Crowdfunding and Disaster Relief
As another follow up to the Give.org Donor Trust Report: Disaster Relief Donor Expectations, this blog post focuses on the crowdfunding questions explored in the report. (This study covered the results of an online survey of 2,100 adults in the United States and 68 national and local disaster relief charities and sought to explore donor expectations related to disaster relief giving.)

After a disaster, crowdfunding giving platforms frequently feature requests for financial assistance from individuals seeking to help themselves or disaster victims. 27% of survey respondents indicated that they contributed to an individual requesting help on a crowdfunding site as a result of a disaster. A higher percentage of males (29.9%) reported contributing to this type of crowdfunding, as compared to their female counterparts (24.8%). Not surprisingly, disaster relief crowdfunding contributions were also more frequent among younger donors:

Generation Z       42.6%

Millennials 41.6%

Generation X       23.4%

Baby Boomers     16.9%

Matures 10.5%

To most disaster relief charities, however, it is not clear that crowdfunding sites increase the total amount of funds donated to charitable organizations (as opposed to other forms of giving). Overall, only 14.8% of the charities surveyed believe that crowdfunding sites help increase the total amount of funds donated to charities. Most frequently, charities say they do not know whether crowdfunding sites help increase total donations to charities (50.0%) or say that such sites do not have a significant effect on charity donations (18.5%). The remaining 16.7% of charities claim crowdfunding sites divert donations from charities to other forms of giving. In addition, local charities that provide disaster relief services are even less likely to believe that crowdfunding helps increase the total amount of funds contributed to charities: 0% of the local charities compared to 36% of nationally-soliciting charities.

Given the continuing popularity of crowdfunding in the wake of disasters, relief organizations may want to monitor how their organization’s name is used on crowdfunding sites. For example, individuals may be claiming to collect funds on their behalf, without the organization’s permission. Also, it is possible that these postings may not accurately describe the organization’s activities.

While we recognize the value of different types of fundraising, including crowdfunding, we hope that donors will visit Give.org to verify if a charity meets the 20 BBB Standards for Charity Accountability. For tips on supporting crowdfunding postings made by individuals, donors can review the tips included in a previous blog.

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring an interview with Robert Hahn, CEO, End Hunger in Calvert County (a BBB Accredited Charity) an organization that works in partnership with faith communities, non-profit organizations, businesses, and citizens to provide groceries, self-sufficiency assessments, and referral services to families and individuals in need in Calvert County, Maryland.

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: Donating Before New Year’s Eve

Tick tock, the donation clock for getting a 2016 tax deduction chimes at midnight on December 31 ^st. The remaining days of the year are usually one of the busiest for charitable gifts. So here are some tax tips to keep in mind to help you ensure your donation is deductible. If you need assistance beyond the advice provided below, see your accountant, attorney and/or review the latest version of IRS Publication 526 which discusses how to claim a deduction for charitable contributions.

Verify charitable tax-exempt status.

Look up the organization’s name on the IRS search engine to verify it is eligible to receive contributions deductible as charitable gifts. Generally, these are organizations tax exempt under section 501(c)(3) of the Internal Revenue Code. You need to know the exact full name of the charity to conduct a proper search on this IRS page. Keep in mind that if the organization is a church or other house of worship, you may not find them on this list since such groups are not required to apply for tax-exempt charity status.

Donating by December 31 ^st.

If you mail a check using the U.S. Postal Service, you can usually go by the delivered when mailed rule. However, this same rule may not apply when using another mailing service. If you are contributing online, as long as the transaction is posted before midnight on December 31 ^st, it can count as a 2016 donation for tax purposes.

In-kind donations.

If you are taking a deduction for goods you donated to charity in 2016, keep in mind the goods should be in good used condition. If the item is unsalable, like a torn sweatshirt, it is not deductible. Also, it is up to you, not the charity, to accurately assign the proper fair-market-value to the donated goods. If the items are used, their value is what they would normally sell for in a charity thrift store in their current condition. If your in-kind gifts total $500 or more, you will need to complete and attach IRS Form 8283 to your 2016 Tax Return. If your claimed value of an item donated is greater than $5,000, you will need an outside appraisal (for more details see IRS Publication 561 on donating the value of donated property.)

Donating your car.

In addition to the Car Donation Tips provided on another page the Give.org website, check out the IRS Publication on Vehicle Donations . Depending on the claimed value of your car donation, you may need to get a written acknowledgement from the charity that includes certain information specified in the mentioned IRS publication. Keep in mind that if the charity sells your used car, your deduction is generally limited to the gross proceeds the charity receives from the sale, which may be significantly less than the current fair-market sales value of the car.

Of course, we also encourage you to find out if the charity you choose to support meets the 20 BBB Standards for Charity Accountability by viewing available reports on Give.org

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features James Firman, President & CEO, National Council on Aging (a BBB Accredited Charity) which helps people aged 60 and older meet the challenges of aging, particularly in relation to health and economic security issues. Programs include but are not limited to job and volunteer placement, counseling, educational workshops, and chronic disease management programs.

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.

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: Scams Directed at Charities
On Monday, June 18^th, the Better Business Bureau partnered with state and federal agencies on Operation Main Street: Stopping Small Business Scams, a law enforcement initiative targeting operations seeking to defraud small businesses, and an education outreach effort to help small businesses protect themselves from fraud. BBB joined with the Federal Trade Commission (FTC), eight state Attorneys General, the U.S. Postal Inspection Service, and two U.S. Attorneys’ Offices to launch the efforts. The FTC and the referenced government agencies announced a total of 24 actions involving defendants who allegedly perpetrated scams against small businesses.

Although this initiative is focused on protecting small businesses, charities would be wise to review the information on the FTC’s website as well as the educational materials which is also available on the BBB’s website. Small and large charities, just as businesses, can be targeted as potential victims in similar circumstances, including but not limited to such activities as:
- Phony Invoices. Charities, like businesses, might receive fake invoices for toner, cleaning supplies or domain name registrations. Scammers are counting on the fact that busy offices, in some cases, may assume the bills are for ordered items, especially if it is for something important such as a website related expense.
- Unordered Office Supplies. A scammer may call a charity to “confirm an existing order” and ask for an address verification. If the call recipient says “yes” to the address, then unordered items arrive with follow-up high-pressure demands to pay for them.
- Fake Check Overpayment Scams. This scam was featured in previous Wise Giving Wednesday blog entries.A charity may receive advance email notice of a large five-figure donation to be received via overnight mail. When the check arrives, the organization receives an immediate follow-up contact asking that a portion of the donation be returned immediately via wire-transfer due to an unanticipated emergency for the donor’s family and/or that an error was made in the amount of the check. The charity later discovers the original check is a fake and they have lost the amount that was sent back to the individual.
While internal accounting controls can help reduce the likelihood of such cons taking place, charities that educate their employees about such possibilities are better armed to avoid being taken. Charities, as well as businesses, can report potential scams on BBB Scam Tracker to help alert others. They can also contact the FTC (FTC.gov/Complaint) as well as their state Attorney General.

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring Thomas Kemper, General Secretary, United Methodist Committee on Relief, a BBB Accredited Charity, that seeks to alleviate suffering whether caused by war, conflict or natural disaster. UMCOR helps communities in the United States and abroad prepare for emergencies and to reduce the risk of disasters through a roster of training programs. The organization’s International Development Unit works through its field offices and partner network to facilitate long-term community development and empowerment in areas of need.

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.

Also, 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
Assisting Victims of Mass Shootings in El Paso and Dayton

The mass shootings that took place in El Paso, Texas and Dayton, Ohio this past weekend are nightmare tragedies that bring us to tears but also motivate many of us to help. While BBB Wise Giving Alliance encourages generosity, we also remind donors to take steps to avoid questionable efforts that often emerge after such tragedies. To assist contributors, we have prepared giving advice included in this link: www.BBB.org/GivingAfterTragedy

While charities can be vetted, it is much more difficult to assess the trustworthiness of individuals who have posted a request for assistance on a crowdfunding site. As a result, it is safest to give to individuals you personally know. If that is not possible, the next best practice is to find out if the funds collected are going to be forwarded and distributed by an established charitable organization. In that case, the organization can be checked out and the involvement of a third-party organization can provide an additional level of oversight and assurance. Also, be warry of vague descriptions about how the collected funds will be used. For example, will the funds be used to assist funeral expenses, medical expenses, or other activities? Thoughtful requests for funding will take the added step of identifying and verifying needs before money is raised.

Also, remember to check out charities at Give.org to find out if the subject organizations meet the 20 BBB Standards for Charity Accountability.

July 17, 2020
Wise Giving Wednesday: Strengthening Fundraising Appeals
Last week, Luana Lewis, Senior Vice President, Programs and Services, BBB Serving Metropolitan New York and Bennett Weiner, COO, BBB Wise Giving Alliance were honored to speak at a Not-for-Profit Seminar held by Grant Thornton in New York City. Their presentation topic, Strengthening Your Message – Communicating Clearly With Donors, focused on three risk management approaches to fundraising: (1) developing more accurate fundraising appeals by frequently evaluating solicitation messages and communication channels; (2) setting up a vetting procedure and data collection systems to help ensure that all fundraising claims can be substantiated; and (3) regularly updating the charity’s board of directors on fundraising procedures, policies, guidelines and major contracts.

Achieving greater control over fundraising messaging helps to protect nonprofits against reputational and fiduciary risks, and also helps to nurture donor trust. Since charities often experience frequent staff turnover, vetting processes and guidelines need to be embedded in operations for continuity.

Additional speakers at the seminar included representatives from Grant Thornton Not-for-Profit Higher Education and Auditing Services as well as Consumer Reports, National Multiple Sclerosis Society, and UNICEF USA.

A repeated theme emerged from the day’s presentations: it is important for key charity staff to break out of their departmental silos and communicate with each other. When developing fundraising appeals, that practice is particularly valuable for development and financial officers, with oversight from general counsels and executive directors. Better communication across nonprofit disciplines can help strengthen the checks and balances within an organization, facilitate greater understanding and coordination, and do more to advance the charity’s objectives and goals.

One of the handouts at this meeting was Grant Thornton’s State of the Not-for-Profit Sector in 2019. This publication included articles on a number of issues which are coincidentally being addressed by the BBB Wise Giving Alliance such as the importance of considering collaboration activities to help accomplish a charity’s mission and the value of considering innovative approaches to drive a charity’s mission.

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video that features an interview with Jaime Berman Matyas, President and Chief Executive Officer, Student Conservation Association, (a BBB Accredited Charity). They have been involved in building the next generation of conservation leaders and encouraging environmental stewardship since 1957.

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: Total U.S. Giving Declined in 2018
As reported by Giving USA, Americans gave $427.7 billion in 2018 which represents a 1.7 percent decline in the inflation-adjusted total of $435.1 billion contributed in the previous year. Giving USA – The Annual Report on Philanthropy for the Year 2018, which was just released this week, is a public outreach initiative of the Giving USA Foundation that is researched and written by the Indiana University Lilly Family School of Philanthropy.

There are a number of issues that may have contributed to this decline, including, but not limited to, the recent changes in the U.S. tax code and the volatile U.S. stock market, but more research is likely to be conducted to help understand these latest philanthropic statistics.

In view of this information, BBB Wise Giving Alliance is encouraging donors to consider a number of options to help ensure a healthy charitable sector:
- Donate throughout the year. Don’t wait until the end of the year to make your donations. Spread them out so that organizations can develop a better barometer of their giving totals. This enables them to plan for budget adjustments and take appropriate actions.
- Take the initiative. While giving is often reactive to appeals for support, donors can take the initiative by identifying which causes and charities they want to support before solicitations are received.
- Reserve for disasters. Keep in mind that as every year brings unfortunate disasters that generate surges in giving for relief, plan ahead what amounts you want to give for those emergencies, so that your other charitable giving might not be reduced due to these events.
- Research matters more. In view of the various potential impacts on giving totals, it becomes even more important to ensure trust in the charities you want to support. Visit Give.org to verify if the organization meets the BBB Standards for Charity Accountability.
Also keep in mind the 2018 giving total is not the first decline in charitable giving in the U.S. over the past forty years. While a decline is not common, it doesn’t necessarily represent a continuing trend. BBB Wise Giving Alliance, however, believes the above tips include common sense considerations that can be useful despite the economic circumstances.

Video of the Week

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

Recent Reports

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

Our recently evaluated charities include:
Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance
July 17, 2020