What the Watchdogs are Watching

What the Watchdogs are Watching

BBB Wise Giving Alliance

Agenda

Introductions

Panelist Discussion 

Questions from the Audience  

Closing Remarks

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Your Panel & Facilitator:

Ken Berger, President and Chief Executive Officer Charity Navigator (Glen Rock, NJ)

Art Taylor, President and Chief Executive Officer Better Business Bureau Wise Giving Alliance, (Arlington, VA)

Ken Euwema, Director-Member Financial Accountability, United Way Worldwide (Alexandria, VA)

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What is your mission and approach to nonprofit

evaluation?

Your Guide to Intelligent Giving

Where the Heart

Meets the Mind

Critical Friend to Charities

QUALITIES OF ACCOUNTABILITY IN N.P. ORGS.

Financial Health

• Positive, sustainable change• Independently evaluatedHIGHER RISK

INVESTMENTLOWER RISK INVESTMENT

* Inspired by the Alliance for Effective Social Investing

Mission: Results

Organizational: Governance

Financial: Financial Health

BBB Wise Giving AllianceGive.org

Standards - Based Reporting : 20 Broad, BBB Charity Standards

Helps Donors & Charities : Informed Giving & Strengthen Trust

Fairness & Cooperation: Drafts shared, No charge for evaluation, Free report access on Give.org

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BBB Wise Giving AllianceGive.org

Uses GAAP Financial Info: Prefers Audited Financial Statements over IRS Form 990

Give.org Popularity: In 2012, over 5 million views of BBB WGA’s 1,200 national charity reports. New report format.

Local BBB Reports: Over 50 of the 113 local BBBs produce another 10,000 reports on local charities using same 20 standards

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How can we have a better understanding of our performance in your evaluation system?

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METHODOLOGY IS EXPLAINED ON OUR WEB SITE

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Standards for Charity Accountability:Standards for Charity Accountability:Measuring EffectivenessMeasuring Effectiveness

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• Standard 6 - Board policy that at least every two years assess organization’s performance.

• Standard 7 – Written report on effectiveness shared with board for their approval.

BBB Wise Giving AllianceBBB Wise Giving AllianceGive.orgGive.org

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• Project of BBB WGA, Independent Sector & GuideStar

• Report Framework on goals, strategies, capabilities, progress and accomplishments

• September 2013: Integrated in GuideStar Exchange

What are appropriate opportunities to leverage

the ratings?

Charity Registered RepresentativeBenefits • Suggest updates to the basic information: organization's address, phone and fax

numbers, mission statement and tag line• 4-star charities can access logos and tools to promote their rating.• Post a comment about their charity's rating on CN’s public site• Notify CN about improvements to Accountability & Transparency data

See our blog for more details & instructions on how to sign up http://goo.gl/2fI7RZ

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Promotional Toolkit: http://goo.gl/cwJguC • Press Releases• Logo on website with link to the rating• Logo on mailings• Facebook• Banners• Annual Report• Twitter

– One charity’s Board member tweeted the good news about 4-star rating by thanking prominent community leaders and the media for their support. Those leaders then RT the message about the rating.

– What can't 95% of nonprofits nationwide claim that we can? 5 consecutive yrs of a 4-star rating frm @CharityNav! Press: sdjewishworld.com/2012/06/07/cha…

• Blog• Email Blast

BBB Wise Giving AllianceGive.org

Access – public access to all charity reports on Give.org & 113 BBB websites

Magazine – all national charity evaluation results listed in nationally distributed magazine

BBB Seal Option – Accredited Charities have option to license seal for appeals & website

National newspaper ad – listing of seal holders

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BBB Wise Giving AllianceGive.org

BBB Name Recognition

Styles survey (Porter Novelli):40% say if see BBB Seal more likely to donate; Increases to 45% if donated once in past year

Academic Study at Baruch College at CUNY -–Charities that meet BBB standards associated w/ National: 8% increase in fundraising revenueMetro NY: 13.5% increase in fundraising revenue

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What compelled you to produce the overhead

myth letter?

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FEEDBACK FROM OUR USERS

BBB Wise Giving Alliance

Always focused on more than finances.

20 broad BBB Charity Standards

Less than 7% of national charities do not meet financial ratio standards.

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BBB Standards for Charity AccountabilityBBB Standards for Charity Accountability

• Governance & Oversight

• Reporting on Effectiveness

• Finances

• Solicitations & Informational Materials

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What are appropriate standards for cause related marketing?

Guidance for Donors• Is the relationship authentic?

• Is the packaging clear and transparent with respect to the charitable partnership?

• Is this something you really need?

• How does the product / service measure up to a competitor’s?

Standards for Charity Accountability:Standards for Charity Accountability:Solicitations & Informational MaterialsSolicitations & Informational Materials

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• Standard 19 – Cause Related Marketing

• Promotions should disclose, at point of solicitation: (a) portion of purchase to benefit charity, (b) campaign duration (if applicable), (c) maximum of minimum contribution (if applicable) Example: 5 cents of every ABC soup sold in October 2013 will

go to XYZ Charity up to a maximum of $100,000

Are there additional things we can provide to help

Charity Navigator and/or BBB Wise Giving

Alliance?

(The Nonprofit Marketplace Hewlett Foundation, 2008)

MEANINGFUL ACCOUNTABILITY INFORMATION

OTHER ACTIONS TO TAKE

BBB Wise Giving AllianceGive.org

Complete online questionnaire form. To complete reviews need to provide more than IRS Form 990 and Website

Public inquiries identify which charities BBB will review but charity can also request to be evaluated.

Amending findings – we will inform you what can be done to addresses any findings

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Questions?

Thank You!

Ken Berger – kberger@charitynavigator.org

Art Taylor – ataylor@council.bbb.org

Ken Euwema – ken.euwema@unitedway.org