Watchdog Announces Programs to Boost Charity Accountability, Assist Donors In Making Informed Giving Decisions 3/3/2003
From: Bennett Weiner, 703-247-9323; E-mail: bweiner@cbbb.bbb.org Holly Cherico, 703-247-9311; E-mail: hcherico@cbbb.bbb.org both of the BBB Wise Giving Alliance Web site: http://www.give.org ARLINGTON, Va., March 3 -- The BBB Wise Giving Alliance today issued new charity accountability standards and revealed that it will launch a seal program to permit national charities to assure donors that they operate in accordance with the rigorous standards. "Our standards address newly-emerging issues of relevance to potential donors, such as privacy protection, charity effectiveness and Internet appeals, while also updating our approach to long-standing accountability concerns, like charity use of funds and fund-raising practices," said Art Taylor, president and CEO of the BBB Wise Giving Alliance, a charity watchdog that was formed by the 2001 merger of the National Charities Information Bureau (NCIB) and the Council of Better Business Bureaus Foundation and its Philanthropic Advisory Service (PAS). The new standards replace the standards of both groups. The BBB Wise Giving Alliance Standards for Charitable Accountability surpass the limited financial-only review conducted by other charity reporting groups. "Potential donors seek more information than ever before when determining whether to respond to a charitable appeal. For instance, we felt it was absolutely crucial to address public concerns about honoring donor intentions, an issue raised about 9/11 appeals. In addition, various other recent charity controversies have highlighted the importance of charity oversight by governing boards," Taylor said. That is why the new standards recommend that charities institute an effectiveness measure to assess their performance; encompass Internet-based charity solicitations, as well as more traditional solicitation venues; and, require charities to spend funds in accordance with donor expectations. It is also the reasoning behind development of a "Wise Giving Seal" program to permit qualified national charities to display a seal in their solicitation materials, advertisements, and other venues, signifying they meet Alliance standards. The seal program is expected to become operational this summer. "The more we can do to inform donors about the operations, governance and fund-raising practices of charities, the better. Our new standards, coupled with the seal program, will not only boost the quality and comprehensiveness of information available to donors, but also ease access to that information," Taylor said. The importance of informed giving decisions is at the heart of the Ryan v. Telemarketing Associates case that is scheduled to be argued before the U.S. Supreme Court this morning. The BBB Wise Giving Alliance filed an amicus brief in the case in support of charities honoring donor intentions relating to fund-raising costs. In addition to assisting donors, the new Alliance programs will serve as a valuable resource for charities committed to ensuring public trust. An Implementation Guide for the Standards for Charitable Accountability has been produced which provides detailed information about how each of the standards will be applied and the effective dates of each of the provisions. "This helpful Implementation Guide will assist charities, large or small, that are interested in becoming more accountable to donors and the general public," said Julia Erickson, executive director of City Harvest in New York City, and a member of the Standards Review Panel that led the revision process. Once launched, the Wise Giving Seal program will add to the value of the new standards for qualifying charities, said John H. Graham, IV, CEO of the American Diabetes Association, who also served on the review panel. "The Wise Giving Seal will provide a means for charities to signify to potential donors that they meet the rigorous standards of a respected and well-known watchdog...standards that go well beyond what the law requires for charity accountability." The comprehensive standards were developed over a three-year period, utilizing independent research on donor expectations and professional and technical assistance from representatives of charities, both large and small, the accounting profession, grant-making foundations, corporate foundation officers, regulatory agencies, research organizations and the Better Business Bureau system. The BBB Wise Giving Alliance Standards for Charitable Accountability and the Standards Implementation Guide are posted on the Alliance Web site at http://www.give.org. ------ The BBB Wise Giving Alliance was formed through the merger of the National Charities Information Bureau and the Council of Better Business Bureaus' Foundation which housed the Philanthropic Advisory Service. The Alliance produces reports on the most-asked-about national charities and specifies if they meet the CBBB Standards for Charitable Solicitations. These Standards address, among other things, charity financial, governance, and fund raising issues. |