WISE GIVING WEDNESDAY: BE CAUTIOUS OF 100% CLAIMS IN APPEALS

Lately, it appears that disasters and tragedies are taking place with increasing frequency. Donors are being asked to be as generous as they can to support charities helping victims, their families and their communities recover. It’s no surprise that some contributors become cautious and skeptical about each new wave of solicitations. To convince donors that their funds will be well-used, some charities, unfortunately, may turn to the pronouncement that all donated funds will be distributed to those in need. While charities that make such “100% claims” usually have the best of intentions, the resulting promotional language can end up being misleading.

All charities have some level of overhead expenses to carry out their work. At a minimum, among other things, there will be fees associated with processing credit card donations, the need to maintain a donor list, accounting records, filing of applicable state government charity registrations, and periodic meetings of the governing board for proper oversight of operations. In turn, there will be paid staff members who help complete these tasks.

So, a disaster relief promotion that states “100% of your donations will be spent on XYZ emergency relief programs” can raise an eyebrow of credibility unless it appears along with some explanation on how this is being accomplished. For example, if wealthy board members or celebrity donors are covering overhead expenses, that should be disclosed alongside any 100% claims made in appeals. To do otherwise could result in a potentially misleading appeal that would not meet BBB Charity Standard 15 which calls for charitable solicitations and informational materials to be accurate, truthful and not misleading, both in whole, and in part.

Depending on the circumstances, it is possible that some 100% claims in appeals could result in the solicitation of donor-restricted funds, which represents a legal restriction on how money can be used. Most charities do not seek such a restriction since it can create additional tracking and expenditure requirements that limit the ability of a charity to spend funds where they are needed most. 

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Heart of Giving Podcast

This week’s Heart of Giving Podcast features an interview with Donald S. Wood, Ph.D., President and CEO of Muscular Dystrophy Association (a BBB Accredited Charity.) He discusses recent breakthroughs in medical research and the treatment of neuromuscular diseases. He also looks fondly back on their historic Labor Day Weekend Telethon.

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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:

• Children's Organ Transplant Association
• Greater Cleveland Volunteers
• Prevent Child Abuse America

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.