Last week, an article on
InsideHigherEd.com got my attention. It told the tale of a frugal staff member at the University of New Hampshire
library who passed away in 2015 and left a sizable bequest worth $4 million to the University. He was also a 1963
graduate of the school. The University
announced it would spend $2.5 million on a career center, $100,000 for the library, and $1 million for a video
scoreboard for its football stadium. The $100,000 library expenditure was allegedly the only specified restriction
on the gift. Although the librarian was reported to be a University of New Hampshire football fan during the
last year of his life, the school received criticism of the decision to fund the video scoreboard. Although almost
all of the gift was unrestricted, some complained the planned scoreboard expenditure did not show respect for the
donor and his decades of devotion to the school. The school disagrees with this assessment and claims they
received positive feedback on the gift.
While I am not making a judgment on this circumstance, the story does provide a valuable lesson for those making planned
gifts. While charities are probably best served by unrestricted gifts, that can be directed to where they deem
most needed, donors would be wise to consider specifying some direction for the potential use of the contribution,
if they want their legacy to help achieve a certain type of result. If so, it would be helpful to have a discussion
with the recipient organization before finalizing the bequest language, so that when the time comes, the charity
can best serve the donor’s true intent while also addressing the organization’s needs.
On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features John Walter,
President & CEO,
Alliance for Cancer Gene Therapy, a
BBB Accredited Charity, which strives to build alliances between philanthropic individuals and organizations,
and medical and academic institutions, to promote cell and gene therapy research in order to combat cancer.
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
As reported in the New York Timeson May 28, “federal government weather forecasters logged preliminary reports of more than 500 tornadoes in the United States in a 30-day period.” That remarkable total also underscores the damage and devastation these horrible storms have left in their wake. Multiple tornadoes struck Ohio during the night on May 27th, devastating homes and businesses in cities, such as Celina, Dayton, Trotwood and Beavercreek.
Oklahoma has also experienced extreme weather. Due to tornadoes, flooding and severe storms, the Oklahoma Department of Emergency Management has declared that all of Oklahoma is under a state of emergency.
BBB Wise Giving Alliance continues to recommend contributing to experienced relief organizations that meet the 20 BBB Standards for Charity Accountability, particularly in the wake of natural disasters. Visit BBB’s Give.org to access reports on these and other charities. Experienced relief organizations are more likely to provide quick and effective assistance.
If you are also considering crowdfunding sites, we offer the following additional advice:
Donate to People You Know. While charities can be vetted, it is much more difficult to assess the trustworthiness of individuals who have posted a request for assistance. As a result, it is safest to give to crowdfunding postings of people you personally know.
Review Crowdfunding Procedures. Crowdfunding platforms are not all the same. Some do a better job of vetting postings and projects that appear on their site than others. Review the site’s description of its oversight procedures before you participate. If you can’t easily find this description, visit a site that is more transparent.
Pictures May Not Be Authorized. Some crowdfunding postings may be using pictures of impacted families without their permission. As a result, don’t assume a photo confirms an official connection. Again, each site has different rules and verifications.
Your gift may not be deductible. If a crowdfunding posting is claiming to be helping a specific named individual or family, donors in the U.S. generally cannot claim a federal income tax deduction as a charitable gift, even if the individual or family is in need. See IRS Publication 526, page 6, for more information on this subject.
How funds will be used? Vague descriptions of how the collected funds will be used should also be a yellow caution light. For example, will the funds be used to assist medical expenses, reconstruction, funerals or other activities? Thoughtful requests for funding will take the added step of identifying and verifying needs before money is raised.
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a video featuring an interview with Beth MacNairn, Deputy Director, Health Volunteers Overseas (a BBB Accredited Charity) that works to address the global health workforce crisis by implementing programs that meet the needs of the host country and institutions, are sustainable, and build local capacity. The organization states that its volunteers provide clinical and didactic education through continuing education and degree granting programs, faculty and staff training, mentoring, education material development, and professional collaboration.
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
The BBB Wise Giving Alliance (BBB WGA) is proud to launch the new version of its Give.org website. Although our main audience continues to be the donating public, we have expanded our content and added features that are designed to also help soliciting charities as well.
As always, the distinguishing feature is our standards-based approach to charity evaluation. Despite what you may hear, we do not rate, rank or measure charities. Rather, it’s all about accountability and trust: does the organization meet the 20 BBB Charity Standards. Research has shown that most donors already have a charity in mind and are seeking assurance that their choice will carry out its stated objective(s).
Here are some of the highlights:
Charity report search is center stage. Our standards-based evaluative reports on charities received over 5.3 million views in 2013. The report search function is now center stage on the homepage. BBB WGA and applicable BBBs cumulatively produce over 11,000 reports on nationally and locally soliciting charities.
Easy access to descriptions of the 20 BBB Standards for Charity Accountability: a new version that explains to donors the meaning and rationale for each standard and continuing access to a more detailed implementation guide for charities that identifies how we apply each standard.
Which BBBs are doing charity review? While the BBB Wise Giving Alliance reports on nationally-soliciting charities, about half of the 112 Better Business Bureaus conduct reviews on regionally soliciting charities. Now donors can also access a page that identifies which BBBs provide this service along with a link to the charity reporting page on their respective web sites.
Please let us know your thoughts about our website (give@council.bbb.org) and your suggestions on how we can better serve you.
Many donors are motivated to give in response to the protest movement addressing racial justice issues. So, we thought we would provide tips to help you make wise giving decisions regarding charities addressing civil rights, free speech, legal rights and related topics. We also have included a starter list of BBB Accredited Charities (i.e., charities that meet all 20 of the BBB Standards for Charity Accountability) that appear to work in such areas. We hope these tips will help you give with greater confidence to charities of your choice.
Find if they have a clear plan
Consider looking beyond the organization’s name and website graphics and find out if they are clear about their planned use for solicited funds. Be careful about organizations that provide detailed descriptions of problems or set high financial goals “we want to raise $10 million” but provide vague or spare explanations about how they will address the issues.
Look for details when appeals are highly emotional
Almost all charity appeals have an emotional component that inspires donors to give. Use caution, however, if you find the heart-wrenching approach is used to an excessive extent and the content has a lack of details about the organization plans to address its mission. Before reacting, look for additional information about how the charity will carry out is programs and services.
Review the track record of experienced charities
Charities with significant experience in addressing civil rights and related matters can provide an additional degree of assurance. They have a track record that you can review such as annual reports, financial statements and the financial form filed with the IRS – Form 990. They also may have developed skills and activities that have proven to be effective. If you don’t see a charity report on Give.org or BBB.org, information such as a charity’s tax status and IRS Form 990 may be available at apps.irs.gov/app/eos
Newly established groups are more difficult to vet
Charities that are newly established can provide an element of excitement and potential for creative ideas, but they are harder to check out, especially if have not completed their first full fiscal year. A financial statement or annual report will not yet be available. If a donor wants to consider supporting a new group, see if their website includes: (a) a clear description of their program service activities, (b) a plan that identifies how much they want to raise and explains how they plan to spend it, and (c) a board roster that identifies the professional affiliations of board members. A donor in the U.S. also may want to ask to see a copy of their IRS Form 1023, the application form for their charity tax-exempt status.
Check their social media
Review the charity’s social media to get up to date information on their activities, especially if you are interested in how they are responding to current issues.
Direct support or redistribution
Some charities raise funds for activities that they will carry out directly. Others may be collecting funds with the intention of re-distributing money to other organizations that will carry out the work. While you can support either organization, you may want to verify the type of charity you are considering. You always have the option of “cutting out the middle man” by directly supporting charities “with boots on the ground.”
Check with state charity officials
In about 40 states, charities are required to register before soliciting, usually with either the office of the attorney general or office of the secretary of state.
Not all soliciting groups are charities
Not all nonprofit organizations that are soliciting you for donations about civil rights and related matters are charities, tax exempt under section 501(c)(3) of the Internal Revenue Code. It is okay to support other groups with the understanding that your contribution may not be deductible as a charitable donation for federal income tax purposes.
Crowdfunding cautions
While charities can be vetted, it is much more difficult to assess the trustworthiness of individuals who have posted a request for assistance. As a result, it is safest to give to crowdfunding postings of people you personally know. Some crowdfunding platforms do a better job of vetting postings and projects that appear on their site than others. Review the site’s description of its procedures. If they do take precautions, they generally announce that fact loudly to help encourage giving. If a crowdfunding posting is claiming to be helping a specific named individual or family, donors in the U.S. generally cannot take a federal income tax deduction, even if the individual or family is in need. Vague descriptions of how the collected funds will be used should also be a yellow caution light.
BBB Accredited Charities addressing racial justice as well as other civil rights, free speech, and/or legal issues
Below is a list of soliciting charities that meet the 20 BBB Standards for Charity Accountability (i.e.,, are BBB Accredited.) Some of them are nationally soliciting charities evaluated by the BBB Wise Giving Alliance. Others are regionally-soliciting charities evaluated by the BBB Foundation of Metropolitan New York. There is no charge to charities for the accreditation assessment and reports are available to the public on Give.org or BBB.org.
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.
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. Art Taylor speaks with Claire Babineaux-Fontenot, CEO of Feeding America (a BBB Accredited Charity), about delivering programs during this challenging time.
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
42 percent of nationally-soliciting charities that did not meet one or more of the BBB Standards for Charity Accountability in the past year either did not produce an annual report or had a report that did not include all of the recommended information (mission, program service accomplishments, board roster and finances.) To meet the financial information section of this standard, the annual report could include either the full financial statements or, at a minimum, total income, total expenses broken out by programs, fundraising and administration and ending net assets.
BBB Charity Standard 16 calls for charities to have an annual report available to all on request. The objective is to ensure that donors have access to certain basis facts in a single document. Such a report does not have to be a fancy, expensive printed publication — it can be a simple word processed document or a page on the charity’s website that can be printed out for those seeking a hard copy. It should describe what the charity does in clear, layman’s terms, which is why we consider it such a valuable tool — it’s a simple way to get a very good idea of the charity’s work.
We believe the contributing public deserves this type of understandable and accessible transparency. Although the IRS Form 990, the annual information return that most charities are required to file, has become quite accessible on the web, not all donors can easily understand this format. Another limitation is that, in many cases, the program service description included in the IRS Form 990 lacks sufficient detail about the charities activities in the past year.
Those who recognize the potential value of an annual report also know the marketing opportunity it provides to help the charity tell its story.
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a video featuring Cheryl Crazy Bull, President and CEO, American Indian College Fund, (a BBB Accredited Charity) which works to help all Native people meet their potential by providing them with access to a higher education. In the 2016 fiscal year, the organization provided approximately 4,100 scholarships to students seeking to better their lives through higher education. AICF also provides financial and programmatic support for the needs of 34 accredited tribal colleges and universities, ranging from capital support to cultural preservation curricula.
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.
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
To complete our national charity evaluations, BBB Wise Giving Alliance asks organizations to complete a detailed online form and also submit supporting documents about their finances and activities. Charities that do not provide any of the requested information, despite repeated written requests, are called “nondisclosure charities.” Our reports on these organizations have a literal red flag, a red exclamation mark, along with an explanation about this lack of cooperation.
Yesterday, September 15th, we issued a release on this subject to help bring the public’s attention to this type of report result. In part, we were prompted to do so after recognizing that recent government actions taken against charity fraud cases showed that most of the organizations cited were organizations that had nondisclosure reports on our Give.org website.
We are not suggesting that all nondisclosure groups are involved in such bad behaviors, but we do warn donors to be extremely cautious when contributing to charities that have not provided BBB WGA with any of the requested information.
Due to the broad scope of the 20 BBB Standards for Charity Accountability we require much more than just an annual tax return (the IRS Form 990) in order to complete our rigorous evaluations. This also reflects our long-held belief that finances alone do not provide the full picture of a charity’s accountability. To learn more about our efforts to encourage charity disclosure, click here.
On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Michelle DeLaune, Chief Operating Officer of the National Center for Missing and Exploited Children (a BBB Accredited Charity). This organization works closely with families of missing children to help rescue and recover them and also seeks to help prevent child sexual exploitation.
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
BBB Wise Giving Alliance Data Shows Lack of Understanding, Scrutiny Amongst Donors
Arlington, VA – October 28, 2014 – New data on how Americans donate to charities pinpoints a lack of donor understanding and the need for simple tools to help donors give wisely. The study reveals that Americans consider finances to be the
most important indicator of trust, which is a misguided review of a nonprofit organization according to the BBB Wise Giving Alliance.
Americans would verify their trust in a charity by looking at:
46 percent said finances;
20 percent cite ethics;
14 percent use name recognition of the charity; and
11 percent said results.
In fact, no single measure can signal if a charity is trustworthy or not. Judging a charity by its overhead ratio or impact as sole barometers cannot accurately portray the overall performance and health of an organization.
“Donors using only one piece of information may have a false sense of confidence,” comments Art Taylor, president and CEO of BBB Wise Giving Alliance. “It is best to holistically review a charity before donating. That can seem like a
large undertaking, but the BBB Wise Giving Alliance standards make it easy for donors to ensure they are giving their time and money to a trustworthy charity.”
The most important action a donor can take before donating is to check the trustworthiness of the charity. BBB Wise Giving Alliance evaluatescharitable organizations on 20 holistic standards covering governance, effectiveness reporting, finances, appeal
accuracy and other issues to assist donors in making informed giving decisions.
“At Give.org, we have done the work for donors with our rigorous evaluations,” adds Taylor. “Just look up a charity and quickly see if it is BBB accredited. In one easy step you will know if the charity is trustworthy.”
ABOUT BBB WISE GIVING ALLIANCE BBB Wise Giving Alliance (BBB WGA) verifies the trustworthiness
of nationally-soliciting charities by completing rigorous evaluations based on 20 holistic standards that address charity governance, effectiveness reporting, finances, fund raising, appeal accuracy and other issues. In support of this mission, local
Better Business Bureaus report on regionally-soliciting charities. There is no charge to charities for the evaluation, and resulting reports are available at Give.org.
This week the Association of Fundraising Professionals (AFP)
held its annual conference in Baltimore, Maryland. Throngs of people attended mainly to beef up their fundraising prowess. Knowing that people would rather count raindrops than attend a session on ethics, I was pleased with the level of member
engagement during two sessions where I was a presenter on the topic.
One session dealt specifically with the AFP Code of Ethics. The second covered the relationships between the AFP Code of Ethics, the recently
updated Independent Sector Principles for Good Governance and Ethical Practice and the BBB Standards for Charity Accountability.
During each session the presenters’ role was to share ethical guidelines and then facilitate a discussion using cases to raise dilemmas and, when possible, bring clarity. I was impressed by the thoughtfulness of the participants
and their commitment to ethical behavior for their own good and the betterment of the fundraising profession.
It’s great that the people most closely connected to charity donors seek to operate ethically but as these sessions went on, it became apparent that fundraisers need support from others within their organizations. Several members told
of frustrating circumstances where they were challenged to get coworkers and volunteers to see the advantages of operating within the AFP Code. We identified strategies for building supportive networks in and outside of the
organization and educating coworkers about the Code and its importance before issues arise.
The Independent Sector Principles for Good Governance and Ethical Practice and the BBB Standards for Charity Accountability also support the efforts of well-meaning fundraisers because these tools extend beyond the fundraising profession
and also address other aspects of the organization. Charities that use the IS Principles as a framework for discussions about transparency, good governance, financial management and solicitations should be better positioned to ensure ethical
fundraising practices. Organizations accredited by the BBB WGA demonstrate through rigorous evaluation that they have been truthful in their public communications, they have strong operational and financial oversight and they are striving to achieve
their goals. These charities will also make it easier for a fundraising professional to operate within the AFP Code.
For those interested in seeing how the Code, Principles and Standards are complimentary, here is a link to a chart that compares the three models: https://twitter.com/wisegiving/status/582710628634214400/photo/1
The pressure on organizations to raise revenue for mission based work is ever present. The charitable sector must use all it has at its disposal to make it easier for fundraisers to do their jobs the right way.
We are always working with charities to publish or update reports for donors. Visit Give.org 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
In the business world, there is a concept in accounting that is called “going concern” which assumes that a business
entity will continue to exist in the future. This same concept applies to not-for-profit organizations as well.
Outside auditors, however, when carrying out their activities when preparing a charity’s financial statements, may
conclude there is substantial doubt about the organization’s ability to continue and will accordingly express this
concern in the opinion and/or notes of the audited financial statements.
Some may think this issue only emerges just when a charity’s liabilities exceed its assets and the organization has little
cash on hand. This can, however, sometimes be a more complicated circumstance to consider. As explained in Section
2.125 of the
Audit and Accounting Guide for Not-for-Profit Entities (produced by the American Institute of Certified Public
Accountants, AICPA, March 2016 edition,) examples of conditions that could lead to a going concern notation,
include, but are not limited to:
A high ratio of fund raising expenses to contributions received
Insufficient resources to meet donor restrictions
Concerns expressed by state authorities regarding alleged violations of state laws
External events that could affect donors’ motivations to continue to contribute
A loss of major funding sources
On the other hand, the fact that a going concern issue has been identified does not necessarily mean that a charity will
soon cease operations. The charity’s board of directors in conjunction with management can develop plans to offset
this issue by taking appropriate measures, although they may be painful. Examples include a reduction of paid
staff and other expense reduction actions. Or, it may develop alternative fund raising strategies if a major source
of funding, such as government grants, has stopped for some reason.
One recent example that came to the attention of the BBB Wise Giving Alliance is a charity that went into severe debt
with a fundraising company due to the fact that the charity’s contributions were not sufficient to cover the amounts
due to this company, which unfortunately was a multi-year contract. One of the lessons here is to carefully consider
the risk associated with engaging in a large multi-year agreement that could raise problems if the hired firm is
not successful. The specifics of the termination clause in such contracts is key in helping the charity exit
a circumstance before it overtakes them.
Strong internal control procedures and an active finance committee on the charity’s governing board can help a charity
avoid potential financial problems. Some of the caution signs to watch out for include: several years of net losses,
lack of adequate accounting systems to track expenses, too many outstanding loans, and government grants and/or contracts
that do not fully cover all of the costs incurred in carrying out an activity.
On a separate note, as part of our Building trust video series, we are pleased to provide our short interview with Joshua
Tripp, COO & CFO of the
Grameen Foundation (a
BBB Accredited Charity) which helps the world’s poor by providing financial services, information on agriculture
and health, and helps poverty-focused organizations improve their operations by providing mobile-based management
tools and other technology resources.
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
Memorial Day helps to honor those who gave their lives serving in the U.S. Armed Forces. Many Americans will seek to help show respect for this day by contributing to charities and other nonprofit organizations that address a variety of issues and needs facing veterans, military service members and/or their families. With over 45,000 organizations in the United States that address these issues, that choice can be a challenging one. To help donors make a wise giving decision, we offer the following advice.
Some groups have similar sounding names. Some veterans’ charities include virtually the same words in different order or slightly different form. So, be alert and make sure the organization you are considering is the one you want to support.
Find Out What They Do. Don’t assume what the veterans organization does based on their name alone. Look for a clear description of the organization’s programs in its appeals and on its website.
Be Careful About Phone Appeals. If not managed properly, some telemarketing campaigns for veterans organizations can be an expensive way to raise funds with very little going to the organization. If called, do not hesitate to ask for written information or visit the group’s website to find out about its programs and finances before making a giving decision.
Be Wary of Excessive Pressure. Don’t be pressured to make an immediate on-the-spot donation to a veterans organization. Charities should welcome your gift whenever you want to send it.
Learn How Donated Items Will Be Used. 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 Outside Sources Before Giving: In addition to charity reports on BBB’s Give.org, check with your state government’s charity registration agency, usually a division of the Attorney General’s office.
While many of these groups are relatively small organizations and bring in less than $100,000 a year, there are still quite a number of larger veterans and military service groups. Below is a list of the ten largest (in terms of total revenue) BBB Accredited national veterans charities (i.e. meets all 20 BBB Charity Standards). Of course, charities devoted to the various needs of veterans and their families deserve our support throughout the year and not just on Memorial Day.
As part of our Building Trust Video Series, we are pleased to provide a video featuring an interview with Pat Craig, Executive Director of The Wild Animal Sanctuary (a BBB Accredited Charity). The organization operates a refuge in California for lions, tigers, bears and other large carnivores rescued from illegal or abusive situations.
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
