Format: Article

  • Wise Giving Wednesday:  November 29th is #GivingTuesday

    Wise Giving Wednesday: November 29th is #GivingTuesday

    For the fifth year, the Tuesday after Thanksgiving in the United States has been designated as #GivingTuesday, the day to make donations to charity.  Started by the New York-based organization, 92Y, in partnership with the United Nations Foundation, #GivingTuesday raised over $116 million dollars in online donations last year from over 700,000 donors. In addition to the national campaign, there are now a number of regional campaigns in the U.S. as well as activities in over 20 countries.

    BBB Wise Giving Alliance has been helping to promote #GivingTuesday for the past four years by encouraging donors to make thoughtful giving decisions.  We urge contributors to find out more about the organization(s) before sending donation(s) and visit Give.org to verify if the charity meets the 20 BBB Standards for Charity Accountability .

    To assist donors, BBB WGA offers the following #Giving Tuesday Checklist  

    1. Decide Together. Sit down with your family or friends to discuss the causes and charities that are most meaningful to you. This will help narrow your search before making a donation.  
    2. Watch Out for Name Similarity.  Charities raising money for the same cause can have names that sound similar.  Avoid cases of mistaken identity by looking at the name carefully.
    3. What Does the Charity Do?  A charity’s name won’t necessarily reflect the nature of its program activities. Review the charity’s appeals and website to make sure you know how it plans to address the problems it describes so well.
    4. Verify Your Charity. Visit Give.org to verify that your charity of choice is trustworthy and transparent. 

    Discover more tips on how to make a wise giving decision provided at Give.org. 


    Of related interest, click below to listen to a recent Council of Better Business Bureaus podcast, “The Bistro,” featuring Giving Tuesday.  More information about this new podcast series (which is also available on iTunes) can be found here.

     


    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

  • Wise Giving Wednesday: Fundraising Photos

    Wise Giving Wednesday: Fundraising Photos

    Several days ago, a CBS story reported that a couple in New York was arrested for allegedly using social media and other communications to defraud donors by raising money using a picture of a boy fighting cancer.  This reminds all of us of the need to be vigilant in verifying charitable requests before making a gift.  Sometimes photographs can stir our sympathetic emotions to get us to contribute without ensuring that our generosity will indeed be used for the purpose identified. 

    It also points to the advantages of contributing to an established charity, as opposed to an individual seeking help.  A charity can be vetted in terms of (1) its proper registration with state government authorities (about 40 of the 50 states in the U.S. have such state agencies which are usually a division of the State Attorney General’s office or the Secretary of State) and (2) by visiting Give.org to verify if they meet the 20 BBB Standards for Charity Accountability.  However, it is much more difficult to determine if an individual posting a personal financial request is telling the truth. 

    In terms of phony requests for help, the public needs to be especially careful after a disaster or tragedy when people may be using names and photos of victims without the families’ permission. And when visiting crowdfunding websites, remember that not all sites operate in the same way in terms of how much checking takes place before people post requests for help.   

    They say “a picture is worth a thousand words,” but the false use of a photo might be summed up in one word: con. 


    On a separate note, as part of our Building Trust Video series, we are pleased to provide a video of Dorothy Poppe, Executive Director, Chiari & Syringomyelia Foundation (a BBB Accredited Charity) which seeks to advance knowledge through research and to educate the medical, allied sciences, and lay community about Chiari malformation, syringomyelia and related disorders. 


    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

  • Hope for charities as 30% intend to give more in 2020, says new survey from BBB’s Give.org

    Hope for charities as 30% intend to give more in 2020, says new survey from BBB’s Give.org

    Arlington, VA (April 7, 2019) – According to a recent survey, 80% of charities anticipate their 2020 revenue will be lower than expected, and most charities (89.4%) are concerned about maintaining a financially stable organization in 2020. But there is cause for hope, because 30% of individuals say they intend to give more in 2020, according to new research from BBB’s Give.org.

    The standards-based, charity-evaluation group today released the Give.org Special Report: COVID-19 and the Charitable Sector. The report, a survey of 118 BBB Accredited Charities and more than 1,000 adults in the United States, explores what charities and donors currently anticipate will be the consequences of the COVID-19 outbreak on the charitable sector.

    “The COVID-19 outbreak and its effects are placing tremendous pressures on charities, all while needs continue to grow,” said H. Art Taylor, president and CEO of BBB’s Give.org, “but the outbreak is also a reminder of our collective interdependence, and we are encouraged to see that as the COVID-19 outbreak gains momentum, almost one-third of donors say they want to give more. BBB’s Give.org will continue to monitor donor attitudes across time and we encourage donors to find collective strength in supporting charities and their causes during this trying year.”

    Report highlights include:

    • 80% of charities anticipate their 2020 revenue will be lower than expected. Most charities (89.4%) are concerned about maintaining a financially stable organization in 2020.
    • Charities anticipating decreased revenue believe that: donors will likely be less able to give (93.5%), charities will be less able to host fundraising events (69.6%); and donors will redirect support to individuals in need (54.4%).
    • More than half of individuals (52.5%) say they expect to give about the same, and another 30.8% of individuals say they plan to give more in 2020. Younger generations intend to increase their giving, with 47.7% of Millennials and 60.8% of Gen Z participants saying they plan to give more.
    • 23.9% of individuals respondents say they plan to give money to small business (directly or via crowdfunding), and 24.5% say they will look for ways to help unemployed individuals directly.

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

    BBB’s Give.org urges donors to give thoughtfully by taking the time to investigate 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 BBB’s Give.org 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 2019, people turned to BBB more than 183 million times for BBB Business Profiles on nearly 5.8 million businesses and Charity Reports on 11,000 charities, all available for free at BBB.org.

    MEDIA CONTACTS: For more information, journalists should contact Elvia Castro (703-247-9322 or ecastro@give.org)

     

     

  • Wise Giving Wednesday: Spring Cleaning Donation Options

    Wise Giving Wednesday: Spring Cleaning Donation Options

    As we enter the spring months and perhaps develop the courage to clean our closets and consider making in-kind donations to charities of the things we don’t use or no longer fit, consider these tips to help avoid being disappointed in how these contributions are used.

    Keep, donate or trash? Don’t assume that charities will accept all second-hand items. Usually, they are looking for items in “good” condition. Ripped sweatshirts or torn jeans will likely be rejected. If uncertain about what the charity will accept, contact them before making the gift.

    Drop-off collection bins. Most metropolitan areas have a variety of collection bins scattered throughout the community that welcome donated clothing. Don’t assume all of them are connected to charity. Be wary of names you don’t know or are similar to ones you do. In some cases, a bin may belong to a for-profit company. Take the time to check out the charity name that appears on the bin with Give.org or BBB.org to verify if they meet the 20 BBB Standards for Charity Accountability.

    How will donated clothing be used? Don’t assume all donated used goods are distributed to the needy. Sometimes they end up in a charity thrift store to generate revenue for the organization. Or some may sell items to a third party to be converted into rag bond paper. Visit the charities website to find out how they intend to use donated clothing.

    Collection trucks. Another possibility is that a charity may contact you by phone or mail and ask that you set out goods for collection on a specified date. If so, contact the charity to find out how they will benefit. In some instances, a third-party picks up the donated goods and the identified charity only gets a flat fee for each pick-up no matter what is included.

    Deductibility. Some donors mistakenly believe the charity will assign values to the goods you donate. Actually, it is your responsibility to ensure that you are properly valuing these gifts. One potential reference is to visit a charity thrift store to identify the typical prices of similar items. For any non-cash contributions totaling over $500, you will need to complete and attach IRS Form 8283 to your next tax return. For more deductibility information, consult an accountant and/or go to:  IRS Publication 526: Charitable Contributions.


    Video of the Week

    As part of our Building Trust Video Series, we are pleased to revisit a 2016 video featuring Lieutenant Colonel Ron Busroe, National Communications and Development Secretary of The Salvation Army’s National Headquarters in the United States (a BBB Accredited Charity).  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

  • Wise Giving Wednesday: Emerging Trends in Disaster Fundraising

    Wise Giving Wednesday: Emerging Trends in Disaster Fundraising

    On Monday, October 5th, I was part of a panel discussion about emerging trends in disaster fundraising at the Washington DC annual meeting of the National Association of State Charity Officials (NASCO) which is held in conjunction with the National Association of Attorneys General.  This topic is on our minds this week in the wake of the horrific flooding that occurred in South Carolina.  I began my presentation discussing how mobile text to give campaigns (for example, the Mobile Giving Foundation) which began as a means to support disaster relief efforts, have since become integrated as part of general giving campaigns.  However, the online environment for disaster giving has further evolved into various alternative platforms that enable charities to quickly organize fundraising campaigns on new online payment platforms.  Some of these platforms such as the crowdfunding activities conducted by the GlobalGiving Foundation (a BBB Accredited Charity) carefully vet all of the projects funded through their website, while others do not. In addition, some of the new giving platforms are run by start-up, for-profit companies that may be harder to check out due to the lack of a track record. In turn, lesser known payment platforms, especially in the disaster giving environment, create new challenges for both government regulators and monitoring groups in terms of keeping track of the latest giving activities and calling out problem practices. 

    My fellow panelist at the NASCO conference was Bob Ottenhoff, President and CEO of the Center for Disaster Philanthropy which seeks to increase the effectiveness of contributions given to disasters. Among other things, Bob pointed out how media coverage drives disaster giving, which is mostly reactive to these events. He also talked about the importance of disaster relief charities providing a financial and activity report after a disaster and monitoring restricted funds that are established for specific disasters.


    As part of our Building Trust Video Series we are pleased to provide a video that features Mari Kuraishi, one of the founders and the current President of GlobalGiving. Under her leadership, the organization has raised over $188 million since 2002 from over 475,000 donors and funded 12,500 projects around the world.     


    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

  • Wise Giving Wednesday: Building Trust Video Series, Interview with the CEO of the American Red Cross

    Wise Giving Wednesday: Building Trust Video Series, Interview with the CEO of the American Red Cross

    With total revenues of about $3 billion, more than 450 chapters in all 50 states, over 25,000 paid staff members, 400,000 volunteers and responding to nearly 70,000 disasters large and small each year, the American Red Cross is one of the largest American charities in existence and one of the most recognized charity brands.  By any measure, the management and oversight of such a huge institution can appear daunting.  To strengthen its ability to meet this challenge, the Red Cross embarked on a major reorganization in recent years that changed its structure and relationship with local affiliates. 

    Prior to 2008, the Red Cross had as many as 3,500 chapters each with its own board of directors, accounting systems, bank accounts, email platforms and purchasing. The local executive reported to his/her own local board and there was little resource sharing among chapters as each raised funds to meet their own budgets.  Five years later, after a major consolidation that was completed in 2013, the Red Cross became a single managed institution with just one board of directors at the national level, chapter consolidation, centralization of IT functions, marketing, finances and back office operations and a change in focus at the local level which was able to devote more attention to the communities being served. The changes implemented provided more flexibility in addressing local needs as a result of this greater coordination, among other things. 

    With this background, we are pleased to provide the following video of an interview with Gail McGovern, President & CEO of the American Red Cross.  Ms. McGovern helped lead the reorganization described above and continues to oversee one of America’s largest charities. 

    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

  • Wise Giving Wednesday: June 12th Conference on Advancing Donor Trust

    Wise Giving Wednesday: June 12th Conference on Advancing Donor Trust

    On June 12th, the BBB Wise Giving Alliance will be hosting a charity conference in Washington DC.  While we hold a conference each year for BBB Accredited Charities that participate in our charity seal program, this gathering is special.  Another organization, the International Committee of Fundraising Organizations (ICFO) is partnering with us to produce this event.  ICFO, is an international association of national charity monitoring organizations. Their members are standards-based charity reporting organizations that report on charities in other countries as we do in the United States. Each year an ICFO member hosts their annual meeting in their home country, this time it is our turn. 

    As a result we are opening up the conference to a wider charity audience and inviting any organization with an interest in charity accountability issues to register for this one-day event.  The agenda will include a discussion of a variety of topics related to trust issues: 

    • Donor Trust in Charity Data Security & Privacy
    • Cultural Differences that Influence Trust in Charities & Fundraising Strategies
    • Gaining Donor Trust of New Generations
    • Communicating Charity Value and Inspiring Trust 

    In addition, our keynote luncheon speaker, Carrie Martin Munk, the Chief Communications & Marketing Officer, ALS Association, will talk about the Ice Bucket Challenge. 

    We hope charity executives and others interested in the mentioned topics will be able to join us for this gathering.  It will be a wonderful opportunity to not only learn from thought leaders on these subjects but also to meet monitoring groups from around the world who face many of the same accountability challenges as the BBB Wise Giving Alliance. 

    With today’s technology, global issues are impacting charitable organizations with greater frequency.  Whether it be tragedies such as the devastating earthquake in Nepal or internet privacy and security threats, charitable organizations are recognizing they are part of an ever expanding community that seeks to maintain donor trust and strengthen accountability.  

    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 / 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

  • Wise Giving Wednesday: Winter Help for Homeless Shelters

    Wise Giving Wednesday: Winter Help for Homeless Shelters

    With Artic air dipping into Canada and the United States this first week of 2018, many areas are experiencing sub-zero temperatures. The frigid weather also reminds us of the hardships experienced by the homeless seeking relief from the cold. Some shelters are likely to fill to capacity during such dangerous drops in temperature, especially in major cities. For those seeking to help the homeless during this difficult weather season, we offer the following advice and suggestions. 

    Supporting Shelters: Homeless shelters need support, especially this time of year, and would greatly appreciate being remembered in your contribution activities.  Most cities have a number shelters that provide assistance, but need continuing support as other charities. If a BBB charity report is not available, BBB WGA recommends checking out the organization’s website for additional details about its services and needs. 

    Financial Information: If you are seeking out financial information on a homeless shelter, transparent organizations will include website access to their latest financial statements. Even small organizations should have some type of available financial statements. Except for those shelters run by houses of worship, charities that bring in $50,000 or more are required to annually complete the IRS Form 990 EZ or the full IRS Form 990 if their gross receipts exceed $200,000. 

    In-Kind Donations: It is best to check with a shelter before making an in-kind donation of food, hygiene products, blankets, clothing or coats. This will help you identify what gifts would be most appreciated. Keep in mind that some shelters deal with a large volume of homeless individuals. Also, travel size soaps, shampoos and similar items are usually very helpful for distribution. 

    Volunteering: It is quite common for the volume of volunteers to exceed paid staff at many shelters. Those interested in helping out, however, should be willing to undergo a background check as organizations seek to ensure the safety of their clients. Also, some homeless organizations conduct outreach to those homeless that are reluctant to seek shelter in order to provide blankets, food or other necessities directly to where they are located. 


    Video of the Week 

    As part of our Building Trust Video Series, we are pleased to provide a video that features Natasha Museles, Executive Director, Children’s Cancer Foundation (a BBB Accredited Charity). which supports facilities treating children with cancer and researchers and programs designed to assist children or families facing a diagnosis of cancer in Maryland, D.C., and Northern Virginia. 


    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

  • Wise Giving Wednesday: Charity Budgeting

    Wise Giving Wednesday: Charity Budgeting

    A quote attributed to the late, great American actor, Spencer Tracy, provides a reminder of the importance of managing finances: “There were times my pants were so thin I could sit on a dime and tell you if it was heads or tails.”  During the last quarter of the year, many charities are seeking to finalize their budgets for next year.

    In terms of charity financial reporting, the public’s attention is usually focused on either the annual financial form filed with Internal Revenue Service (the IRS Form 990) and/or the charity’s audited financial statements which is prepared by an outside CPA firm. These items are looking backwards in time by showing users how the charity spent its funds in the past fiscal year. They are historical documents, not future forecasts.

    A charity’s budget, however, shows how the charity plans to spend its funds in the current or coming year. Depending on the circumstances, it might reference new services, programs or priorities that won’t be found elsewhere. When properly prepared and produced, a budget can provide a valuable planning tool that is essential to good financial stewardship.

    One of the BBB Standards for Charity Accountability (Standard 14) calls for charities to have a board-approved budget that includes certain information.  It should identify the projected total amounts to be spent on program activities, fund raising and administration. Such an expense breakdown will help the board gain a better understanding of how the charity’s resources will be used.  While a table of budgeted expenses in natural categories such as salaries, postage, travel, etc. provides essential detail, the recommended allocation totals helps complete the financial picture.

    In addition, the budget should be periodically reviewed and updated to reflect any changes in circumstances that has come to the charity’s attention. Good budgeting practices help a charity track its finances and potentially avoid financial shortfalls that could cause it to worry where the next dime will come from.


    Video of the Week

    As part of our Building Trust Video Series, we are pleased to provide a video featuring Rachel Laser, President and CEO of Americans United for Separation of Church and State (a BBB Accredited Charity), an organization that works to preserve the separation of church and state through litigation, advocacy and education efforts.  This includes initiating and supporting lawsuits, providing legal counsel, as well as producing a monthly magazine, issue papers and legislative alerts.


    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

  • Wise Giving Wednesday: Fraud Examiners Release 2020 Global Report

    Wise Giving Wednesday: Fraud Examiners Release 2020 Global Report

    The Association of Fraud Examiners released a report summarizing an analysis of 2,504 cases of fraud taking place from January 2018 to September 2019. While this is not intended to capture all fraud that takes place, it provides a detailed analysis of the costs and methods of occupational fraud as investigated by certified fraud examiners from around the world. Of this total, there were 191 cases that involved nonprofit organizations. Here are some highlights of the nonprofit data:

    • The median loss was $75,000 with the average loss being $639,000
    • 74% of the cases involved either executives or managers/supervisors
    • The top three types of fraud experienced at nonprofits were: corruption, billing and expense reimbursements.
    • 40% of these frauds were detected by tips or complaints, 17% were found by internal audits

    As stated in the study, “Nonprofit organizations can be more susceptible to fraud due to having fewer resources available to help prevent and recover from a fraud loss.” Among other things, the report concludes that a lack of internal controls and less oversight contributed to fraud at nonprofits.

    In part, the lessons learned from this data is that while no organization can be immune to the possibility of criminal behavior, steps can be taken to help reduce its occurrence or help detect it quickly to avoid significant loss. Actions such as fraud education, hotlines and/or whistleblower complaint policies, and data monitoring can help.

    BBB Wise Giving Alliance believes these fraud cases also point to the importance of having audited financial statements, especially when gross revenue exceeds $1 million, as called for by BBB Charity Standard #11. These statements are more reliable and complete than an IRS Form 990 and will usually include a management letter for the board of directors advising them of any recommended changes to strengthen practices. Finances alone, however, are not the only issue that needs to be verified as demonstrated by the broad nature of the BBB Standards for Charity Accountability which also address charity governance, results reporting and accurate and transparent communications.


    Video of the Week

    As part of our Building Trust Video Series, we are pleased to provide a video interview with Mabel Valdivia, Executive Director of Fonkoze USA, a BBB Accredited Charity that provides microfinance loans, skills training, and health products and services to the poor in Haiti.  The organization reports that it serves as Haiti’s largest microfinance institution, with 96% of its borrowers being women starting or expanding small businesses.


    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