2

ACCORDING TO THE NATIONAL CENTER FOR CHARITABLE STATISTICS, THERE ARE:

1,537,465NON-PROFIT ORGANIZATIONS IN THE UNITED STATES

3

ACCORDING TO THE UNITED WAY OF SUMMIT COUNTY, THERE ARE APPROXIMATELY:

2,500 NON-PROFIT ORGANIZATIONS IN

SUMMIT COUNTY

A Large and Growing Sector

4

Public Views on Charity Efficiency• Charitable confidence has not risen much since

2003

• American’s remain skeptical

• Estimates of waste remain high

• The future of the sector rest with public confidence

5

Charitable Accountability Standards

6

Feeding America and theBetter Business Bureau

7

8

BBB Charity Review • The BBB system reports on thousands of national and

local charities that publicly solicit donations

• BBB Wise Giving Alliance reviews over 1,300 national charities

• In the State of Ohio, BBBs are reporting on over 4,000 local charities

• Over 5 million inquiries over the past 12 months nationally 9

Charity Donor Profile

11

Charity Donor Profile

12

Charity Donor Profile

13

Three-fourths of the population report that they have given to charity in the last year. • Most are not likely to research purchases before they buy, but describe

themselves as being overall risk-averse and unwilling to take risks when making investments

• Most are not fully trusting of charitable organizations• Very few completely trust online product reviews; with about half of this group

ambivalent to them. However, two-fifths agree that the more ratings there are for a product, the more likely they are to trust them

• Four-fifths state that once they find a brand that they like, they are likely to remain loyal to it

• More than two-thirds agree that it is important for them to be up-to-date on the latest news and events

Three-fourths of the population report that they have given to charity in the last year. • Most are not likely to research purchases before they buy, but describe

themselves as being overall risk-averse and unwilling to take risks when making investments

• Most are not fully trusting of charitable organizations• Very few completely trust online product reviews; with about half of this group

ambivalent to them. However, two-fifths agree that the more ratings there are for a product, the more likely they are to trust them

• Four-fifths state that once they find a brand that they like, they are likely to remain loyal to it

• More than two-thirds agree that it is important for them to be up-to-date on the latest news and events

Description of Charity Donors

Charity Donor Profile

14

Overall very similar to the population as a whole with regards to interests, consumer behavior, information trust and media consumption behavior.

• This group is slightly more likely to have read magazines and newspapers in the last month

• Additionally, although about equally likely to have read a national newspaper like USA Today in the last month, charity donors are more likely to have read a local newspaper during the same time period

Overall very similar to the population as a whole with regards to interests, consumer behavior, information trust and media consumption behavior.

• This group is slightly more likely to have read magazines and newspapers in the last month

• Additionally, although about equally likely to have read a national newspaper like USA Today in the last month, charity donors are more likely to have read a local newspaper during the same time period

How this Group Compares to the Population as a Whole

Charity Donor Profile

15

This information identifies some notable opportunities for BBB charity review as an important resource for charity donors:

• Charity donors have some skepticism of charitable organizations. Despite being risk-averse when it comes to making monetary investments, they are not very willing to take the time to conduct research before making investment decisions

• They lend greater trust to online ratings, and if proven consistently accurate are willing to make decisions based on that information and trust the rating system more

• This group likes to be informed, and stay up-to-date on current events—an interest reflected in their news consumption. Increasing presence in the news media will increase one’s profile among this group.

This information identifies some notable opportunities for BBB charity review as an important resource for charity donors:

• Charity donors have some skepticism of charitable organizations. Despite being risk-averse when it comes to making monetary investments, they are not very willing to take the time to conduct research before making investment decisions

• They lend greater trust to online ratings, and if proven consistently accurate are willing to make decisions based on that information and trust the rating system more

• This group likes to be informed, and stay up-to-date on current events—an interest reflected in their news consumption. Increasing presence in the news media will increase one’s profile among this group.

Key Considerations

Meeting Consumers Needs• BBB helps donors find & give to charities they

can trust.

• Our research has shown that most donors find it difficult to know whether a charity is legitimate before they donate. By providing a thorough, thoughtful evaluation, our reports give them the information they need.

16

BBB Charity Reviews• Why? Because donors and businesses asked

for it

• Standards-based reports

• Goals- Encourage informed giving- Strengthen charities

18

What is the benefit?Donors:

• BBB Reports - free, quick way to check if charities meet high standards

• BBB Seal - widely recognized, valued charity trust mark

An educated donor can be your

organization’s best friend!19

What is the benefit?Charities:

• Standards – key practices• BBB Accreditation – no cost! Charity that meets

all 20 Standards is a “BBB Accredited Charity.” • BBB Seal – Optional licensing program, only for

BBB Accredited Charities…great fundraising tool!

20

BBB Accredited Charity Seal

• Optional seal, only for charities that meet all 20 BBB Charity Standards

• License agreement & fee (based on annual revenue, fees range from $150-$550)

21

What is the benefit?• Self-regulation leads to increased trust in

charities without government intervention.

• Helps to expose unethical operators and divert charitable dollars to responsible organizations

22

BBB Standards for Charity Accountability• Created by a national panel of experts from

charities, foundations, etc.

• Guided by a principle of full disclosure to donors

• Designed to apply to publicly soliciting organizations

23

Guiding Concepts for BBB Standards• Standards based charity evaluations• Accountability is more than financials• Open Process in standards application• Communicate draft findings with charity• Assist the charity by identifying what change in

practice to amend findings

24

BBB Standards for Charity Accountability• Governance & Oversight

• Reporting on Effectiveness

• Finances

• Solicitations & Informational Materials25

26

50% of charities that disclose

meet all 20 Standards for Charity

Accountability

Top 5 BBB Charity Report Findings

Annual Reports: not fancy…• Mission• Program Summary• Board & Officers List• Financial Summary

- Total income, prior FY- Expenses: program, FR, admin- Ending net assets

27

Top 5 BBB Charity Report Findings

Governance Meetings• 3 or more evenly spaced full board

meetings/year• Majority in attendance• Face-to-face

- One conference call may serve as one of the 3 meetings

28

Top 5 BBB Charity Report Findings

Effectiveness Policy• Enacted by board• Policy commits to conduct

performance assessments at least every 2 years

• How well org is addressing its mission (e.g. strategic plan)

29

Top 5 BBB Charity Report Findings

Effectiveness Report• Written report on organization’s

performance provided to board for approval

• Progress, future goals• ChartingImpact.org

30

Top 5 BBB Charity Report Findings

Website Disclosures, If Soliciting• Annual report basics• Mailing address of charity• Access to 990

- 990 in PDF or link to GuideStar 990

• Privacy policy

31

• Informational reports may be done for organizations that:– Are less than 3 years old– Do not conduct fundraising activity– Have less than $25,000 a year in revenue

32

How does the BBB differ from other watchdogs?• BBBs have offered this service since the 1920s

• Comprehensive Standards

• In depth evaluations & reports

• We work with each charity if needed to guide them towards best practices

• More than just a review of IRS Form 99033

Want more information?BBB of Akron•www.akron.bbb.org•Kim Ickes (kickes@akronbbb.org)

Nationally Soliciting Charities•Give.org

Thank you! 34