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In its role as a standards-based charity evaluator, the BBB Wise Giving Alliance shares some common interests with federal and state government regulators of charities. In part, both are seeking to help identify bad actors and help the donating public in making wise giving decisions. Different tools, however, are being used to accomplish this objective. 

For government agencies, the monitoring of a charity’s compliance with laws and regulations covering charitable solicitations and fundraising companies provide a basis for correcting abuses in the philanthropic marketplace. For the BBB Wise Giving Alliance, the 20 BBB Standards for Charity Accountability enable us to complete comprehensive evaluations that address such issues as charity governance, results reporting, finances, appeal accuracy and donor privacy.

There are some key distinctions in the application of these different monitoring methods. Government agencies can require charities to submit requested materials through annual charity registration and, if needed, issue subpoenas for additional information to complete investigations. In contrast, BBB WGA relies on charities to voluntarily furnish information to trained and experienced analysts and complete an extensive online questionnaire to complete its standards assessment.

Another key difference is that while some of the BBB Standards for Charity Accountability capture elements of fundamental malfeasance such as deceptive appeals or self-dealing, our standards also address broader trust issues involving board oversight, website content or results reporting that go beyond legal requirements.

Both government agencies and BBB WGA hope to strengthen the public’s trust in philanthropy and help ensure that contributions are used for the purposes for which they are solicited.

Video of the Week  

As part of our Building Trust Video Series, we are pleased to provide a video featuring Michael Roberts, President and CEO,  First Nations Development Institute  (a  BBB Accredited Charity ) which works to improve economic conditions for Native Americans through technical assistance and training, advocacy and policy, and direct financial grants.    

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:

• CaringBridge
• Global AIDS Interfaith Alliance
• Opportunity International  

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

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

The Financial Accounting Standards Board (FASB) is an independent organization that establishes and improves standards for financial accounting for both for-profit and not-for-profit entities in the United States.  On April 22, 2015 the FASB announced proposed changes for all not-for-profit financial statements. It’s been quite some time since the audited financial statements of charities and other not-for-profits have been the subject of significant proposed changes.  Here at the BBB Wise Giving Alliance, we are especially interested in helping nonprofit leaders understand the potential impact of the updates proposed by FASB. BBB WGA has always focused on a charity’s audited financial statements (as opposed to the IRS Form 990) as part of its review.  While finances are addressed in just a portion of the 20 BBB Standards for Charitable Accountability, they understandably get a great deal of donor attention.  

Some of FASB’s proposed changes in the audited financial statements of charities include increased disclosures about financial asset liquidity (i.e., what portion of assets is available now), the sources and uses of a charity’s cash, and donor restrictions on the use of funds. To assist charity executives and others in understanding these changes, the BBB Wise Giving Alliance and the Metro New York BBB Education and Research Foundation are jointly offering a no-cost webinar on May 21, 2015 at 1pm EDT.  The webinar is generously sponsored by EisnerAmper LLP.  The two presenters will be Julie Floch and Candice Meth, both distinguished partners in not-for-profit practice at this well-known, BBB Accredited accounting firm.  While the webinar can accommodate up to 1,000 registrants, we encourage interested participants to sign up while there is still room. To learn more about the webinar and register visit: www.go.bbb.org/ny-fasbchanges 

Wise Giving Wednesday readers who are interested in providing FASB comments on their proposed accounting changes will have until August 20, 2015 to send comments to them.  For additional details, visit fasb.org.   Feedback can be provided to FASB directly through an electronic response form.  

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:    

• Help the Afghan Children 
• Mothers Against Drunk Driving 
• Oceana 
• Soldiers’ Angels 

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

Those who attended our June 12^th conference on “Advancing trust in the Charitable Sector” benefited from the expertise of a variety of experts and thought leaders who provided a broad overview of accountably and trust issues facing charities in the United States and abroad.  While I intend to produce future blogs on some of the discussions that took place, I want to share a few highlights for those who were unable to join us. 

Security & Privacy: Alison Lefrak of the Federal Trade Commission (Senior Attorney, Division of Privacy and Identity Theft Protection) explained how the FTC plays a leading role in addressing online privacy and security protections for consumers and that it supported proposed data security legislation that would give FTC jurisdiction to bring cases against nonprofits as well.

Cultural Differences that Influence Trust: Representatives from the Taiwan NPO Self Regulation Alliance and DZI (Germany’s charity monitoring organization) explained how they report on charities in their respective countries and the significance of their work in strengthening donor trust.

ALS Association & Ice Bucket Challenge:  Carrie Martin Munk, Chief Communications and Marketing Officer, ALS Association, gave a fascinating summary of how ALS Association handled the large volume of donations they received and described their ice bucket plans for 2015. 

Gaining Trust of New Generations:  Derrick Feldmann, President & Founder of Achieve, talked about how charities have sought to engage Millennials and noted that he is working on a revised study on Millennials and charities.

Communicating Charity Value & Inspiring Trust:  Andrew Watt, President & CEO, Association of Fundraising Professionals, underscored the significant role of ethical standards in ensuring a trustworthy charitable sector and reminded everyone that true change takes time and continuing effort to achieve and is not quickly accomplished.

The audience appreciated the observations and insights provided by these and other speakers and had an opportunity to raise additional points during the Q&A session after each panel.

We thank all the presenters and participants and will be providing links to slides and other information from this conference.

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

It’s September, and the kids are back in school across the country. And many parents out there know that this also signifies  not just the three r’s of Reading, wRiting and aRithmetic, but also the “fourth” R of raising funds. Yes, at many schools, families may be asked to help raise funds for school funding gaps, playground equipment or perhaps a special class project.  This can range anywhere from bake sales to book sales. To help ensure success, parent groups would be wise to make sure they have specific plans and goals in place that include stock letters to be sent to parents to introduce the fundraiser, keeping tracks of volunteer leaders for the event, being transparent during the campaign in terms of how much of the collected funds will go to the designated activity and maintaining paper trails to ensure donations are recorded, tracked and thank you notices are sent to contributors. 

Teachers seeking assistance for class projects might consider posting a request on DonorsChoose.org, a BBB Accredited Charity, that helps teachers across America post classroom project requests so individuals can provide funding. 

School fundraisers are not the only philanthropy to consider during the school year. In many areas of the country, high school seniors will be required to complete a specified minimum number of hours of community service in order to graduate.  To avoid the end of school year rush, the time to start identifying and making such volunteer arrangements for teens is now. Take the time to check out the charity before a teenager starts volunteering his or her time.  Make sure this is a cause and work environment that you are comfortable with before they start.  Among other things, see if there is a BBB report on the group and find out if the charity is properly registered with the state charity registration office (In the U.S. this is usually a division of the office of the Attorney General. In Canada, check out the Canada Revenue Agency.) 

And remember, the care and respect that you demonstrate in both funding and volunteering activities provides students with philanthropic lessons that will last a lifetime. 

On a separate note, as part of our Building Trust Video Series we are pleased to provide a video that features Mark Bergel, Ph.D., Founder and Executive Director of A Wider Circle (a BBB Accredited Charity).  A Wider Circle is an organization that works to end poverty for individuals and families by collecting and distributing donated goods, providing professional attire, job preparedness courses, and a well-baby program.  

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: 

• America’s Charities
• Parents Television Council
• Worldwide Foundation for Credit Unions 

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

While I have written previous blogs on the subject of donor privacy, I would like to bring to your attention that our upcoming charity conference will include an outstanding panel discussion that addresses this issue even further. 

One of the panel discussions at our June 12^th meeting (Advancing Trust in the Charitable Sector) is on the subject of Charity Data Security & Privacy.  Senior privacy officials from two prominent nonprofits will discuss the unique privacy and security challenges their organizations face in today’s dynamic online environment, and will offer their insights on how to manage and protect sensitive personal information entrusted to charities by donors and others.  We will also hear from an FTC representative about the role of the regulator in  enforcing privacy and data protection laws as and promoting best practices at the state and federal level.  We lined up a great selection of speakers:

• Allison LeFrak,  Senior Attorney, Division of Privacy and Identify Protection, Federal Trade Commission
• William Karazsia, Assistant General Counsel and Chief Privacy Officer, National Student Clearinghouse
• Ellen Willmott, General Counsel, Susan G. Komen 

Each of these speakers will bring a unique and important perspective about the challenges charities face as they seek to protect their donors and other contacts from unauthorized access to data charities maintain about them.  This  issue is more than just protecting credit card information when making online gifts but extends to all forms of private information that a charity may handle as a routine part of its interactions with the public and other users.

We hope that you may be able to join us on June 12^th.  Registration is still open.  If not, we intend to share some of the highlights of this meeting in a future posting.     

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:     

• Foundation for Peace
• Pediatric Cancer Foundation
• Spina Bifida Association of America

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

Following the outpouring of public shock and concern over the events in Charlottesville, Virginia, many are seeking to assist the victims of violence directed at those protesting the white supremacist rally. As with other tragedies, bad fundraising actors are more likely to strike when emotions run high. The Office of the Attorney General in Virginia issued a press release yesterday urging donors to exercise caution as they consider donating money to assist victims in their recovery. BBB Wise Giving Alliance also shares the following tips to assist contributors.

1. Wise Giving. Don’t assume the first contribution request is the best choice. Take the time to find trusted charities that are providing assistance.
2. Crowdfunding Cautions. Questionable solicitors may set up a crowdfunding page but have no official connection to the victims and/or their families, or to any charitable organization. While some crowdfunding sites have implemented procedures to help prevent fraudulent efforts, especially after a tragedy, others don’t. Also, crowdfunding sites vary in terms of fees charged for transactions and when collected donations are released to the fundraiser.
3. Respecting Victims and Their Families. Organizations or individuals raising funds should get permission from the victims and/or their families to use either the names of the victims and/or any photographs of them.
4. How Will Donations Be Used? Watch out for vague appeals that don’t identify the intended use of funds. For example, how will the donations help victims and/or their families? Also, unless told otherwise, donors will assume that funds collected quickly in the wake of a tragedy will be spent just as quickly. See if the appeal identifies when the collected funds will be used.
5. What if a Family Sets Up Its Own Assistance Fund? Some victims and/or their families may decide to set up their own assistance funds. Be mindful that such funds may not be set up as charities. Also, if collected monies are administered by a third party such as a bank, CPA or lawyer, this will help provide oversight and ensure the collected funds are used appropriately (e.g., paying for medical expenses, counseling, and other tragedy-related needs.)

For additional information about making informed giving decisions, visit Give.org.

As part of our Building Trust Video series, we are pleased to provide a video that features Rabbi Yechiel Eckstein, Founder and President of the International Fellowship of Christians and Jews (a BBB Accredited Charity) which seeks to promote understanding and cooperation between Jews and Christians and to build broad support for Israel and other shared concerns.  

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:

•   American Red Cross
•   SADD
•   World Monuments Fund 

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