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ICFO Comparative Study 2013: Trust Prerequisites for Charities

This study examines the common prerequisites for building trust with donors in the charitable sector. It highlights the importance of independence, comprehensive standards, and effective monitoring. However, it also emphasizes that the meaning of these prerequisites can vary significantly across countries. The Deutsches Zentralinstitut für Soziale Fragen (DZI) is presented as an example of an organization that contributes to building trust in charities through its independent information, ethical standards, and advisory services.

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ICFO Comparative Study 2013: Trust Prerequisites for Charities

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  1. ICFO Comparative Study 2013: Findings Common Prerequisites to provide Trust to Donors • Independence • Comprehensive Standards • Effective Monitoring • But: The meaning of these common prerequisites can differ significantly from country to country!

  2. Deutsches Zentralinstitut für • soziale Fragen • Founded 1893 • Documentation and Information on Theory und Practice of Social Work • Library & Literature Documentation, Publishing House • Donor Advisory Service since 1906 • DZI Charity Seal since 1992

  3. How DZI contributes to TRUST in Charities • Mission:to support the charitable sector by providing independent information and judgements on charities and by setting and promoting appropriate ethical standards • Structure: Independence, Competence, Neutrality • Services: Individual Charity Portraits, Seal-of-Approval, Warnings, Donor Info

  4. INDEPENDENCE: DZI’s Board Composition • Senate von Berlin • Federal Ministry for Family Affairs, Senior Citizens, Women and Youth • German Association of Cities • Association of German Chambers of Commerce and Industry • Free Federal Association for Non-Government Welfare Work = State + Private Economy + Third Sector

  5. DZI: INDEPENDENCE AND COMPETENCE • Annual Budget 1,3 Mio. Euro • 55% Own Income45% Public Subsidies and Institutional DonationsStaff: 22 Employees (from which 14 in Donor Advisory Service) • Donor Advisory Service: 8 staff members with university degree (mostly macro or micro economics)

  6. COMPREHENSIVE: The DZI Seal Standards Mission Management and Supervision Fundraising and Public Relations Useof Funds Salaries Accounting and Audits Transparency

  7. Cultural Differences • To publish Financial Statements? • To publish top salaries? • To have a ceiling on overhead or fundraising expenses? • To have paid Board Members or Members of Supervisory Board? • To provide tax exemption and public benefit status? • To accept certain fundraising methods (child sponsorship, telephone fundraising) • To accept commissions being paid to fundraising professionals? • To criticize to pressurefulfundraising methods?

  8. More Information? www.icfo.org

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