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What the Watchdogs are Watching

BBB Wise Giving Alliance. What the Watchdogs are Watching. Agenda. Introductions Panelist Discussion Questions from the Audience Closing Remarks. Your Panel & Facilitator:.

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What the Watchdogs are Watching

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  1. BBB Wise Giving Alliance What the Watchdogs are Watching

  2. Agenda • Introductions • Panelist Discussion • Questions from the Audience • Closing Remarks

  3. 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)

  4. What is your mission and approach to nonprofit evaluation?

  5. Your Guide to Intelligent Giving Where the Heart Meets the Mind Critical Friend to Charities

  6. QUALITIES OF ACCOUNTABILITY IN N.P. ORGS. Organizational: Governance Mission: Results • Positive, sustainable change • Independently evaluated HIGHER RISK INVESTMENT LOWER RISK INVESTMENT Financial: Financial Health Financial Health * Inspired by the Alliance for Effective Social Investing

  7. BBB Wise Giving AllianceGive.org Standards - Based Reporting : 20 Broad, BBB Charity StandardsHelps Donors & Charities : Informed Giving & Strengthen TrustFairness & Cooperation: Drafts shared, No charge for evaluation, Free report access on Give.org

  8. BBB Wise Giving AllianceGive.org Uses GAAP Financial Info: Prefers Audited Financial Statements over IRS Form 990Give.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

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

  10. METHODOLOGY IS EXPLAINED ON OUR WEB SITE

  11. Standards for Charity Accountability:Measuring Effectiveness • 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.

  12. BBB Wise Giving AllianceGive.org • Project of BBB WGA, Independent Sector & GuideStar • Report Framework on goals, strategies, capabilities, progress and accomplishments • September 2013: Integrated in GuideStar Exchange

  13. What are appropriate opportunities to leverage the ratings?

  14. Charity Registered Representative Benefits • 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

  15. 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

  16. 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 magazineBBB Seal Option – Accredited Charities have option to license seal for appeals & website National newspaper ad – listing of seal holders

  17. 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 revenue Metro NY: 13.5% increase in fundraising revenue

  18. What compelled you to produce the overhead myth letter?

  19. FEEDBACK FROM OUR USERS

  20. 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.

  21. BBB Standards for Charity Accountability • Governance & Oversight • Reporting on Effectiveness • Finances • Solicitations & Informational Materials

  22. What are appropriate standards for cause related marketing?

  23. 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?

  24. Standards for Charity Accountability:Solicitations & Informational Materials • 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

  25. Are there additional things we can provide to help Charity Navigator and/or BBB Wise Giving Alliance?

  26. MEANINGFUL ACCOUNTABILITY INFORMATION (The Nonprofit Marketplace Hewlett Foundation, 2008)

  27. OTHER ACTIONS TO TAKE

  28. 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

  29. Questions?

  30. Thank You!Ken Berger – kberger@charitynavigator.orgArt Taylor – ataylor@council.bbb.orgKen Euwema – ken.euwema@unitedway.org

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