Watchdog Watch

Following are summaries of recent reports by the Council of Better Business Bureaus’ Philanthropic Advisory Service and the National Charities Information Bureau.

Those two private organizations report on whether charities meet standards for fund raising, governance, financial management, and public information. The organizations do not approve or disapprove of charities, and urge potential donors to evaluate the importance of variations from the standards. They also note that charities’ practices may change at any time.

For organizations that do not meet the standards, information is given only on those standards that are not met. Those organizations meet all the other standards.

Copies of the full reports are available from the Council of Better Business Bureaus, Philanthropic Advisory Service, 4200 Wilson Boulevard, Arlington, Va. 22203; http://www.bbb.org; and the National Charities Information Bureau, 19 Union Square West, New York 10003; http://www.give.org.

BETTER BUSINESS BUREAU

Alliance to Save Energy, 1200 18th Street, N.W., Suite 900, Washington 20036; http://www.ase.org. Does not meet the following standards: (1) that the soliciting organization’s financial statements present adequate information to serve as a basis for informed decisions, including — but not limited to — a detailed schedule of expenses by natural classification (e.g., salaries, employee benefits, occupancy, postage, etc.), presenting the natural expenses incurred for each major program and supporting activity; (2) that the soliciting organization substantiate on request its application of funds, in accordance with donor expectations, to the programs and activities described in solicitations; and (3) that the soliciting organization have an active governing body that, among other things, meets formally at least three times annually, with meetings evenly spaced over the course of the year, and with a majority of the members in attendance (in person or by proxy) on average. The bureau notes that, as of August 9, it is unable to verify compliance with one standard relating to solicitation and one standard relating to governance.

American Heart Association, 7272 Greenville Avenue, Dallas 75231-4596; http://www.americanheart.org. Meets all standards.

Disabled Children’s Relief Fund, P.O. Box 7420, Freeport, N.Y. 11520; http://www.dcrf.com. Does not meet the standard calling for the soliciting organization’s financial statements to present adequate information to serve as a basis for informed decisions, which includes (but is not limited to) an accurate presentation of all fund-raising costs. The bureau notes that, as of August 15, it is unable to verify compliance with seven other standards relating to use of funds and to solicitations and informational materials.

Farm Sanctuary, P.O. Box 150, Watkins Glen, N.Y. 14891, or P.O. Box 1065, Orland, Cal. 95963; http://farmsanctuary.org. Does not meet the standard calling for solicitations in conjunction with the sale of goods, services, or admissions to identify at the point of solicitation a) the benefiting organization, b) a source from which written information is available, and c) the actual or anticipated portion of the sales or admission price to benefit the charitable organization or cause; or the standard calling for the organization to have an independent governing body whose compensated board members constitute no more than 20 per cent of the total voting membership of the board.

NATIONAL CHARITIES INFORMATION BUREAU

Children’s Wish Foundation International, 8615 Roswell Road, Atlanta 30350. As of October 6, the organization had not provided sufficient information for the bureau to prepare a regular report. Based on CWFI’s 1998 annual report, and on information forwarded by contributors or previously in the bureau’s files, CWFI does not meet the following standards: (1) that the organization’s governing board have no more than one paid staff member, usually the chief staff officer, who does not serve as chair or treasurer of the board; (2) that the governing board have no material conflicts of interest involving board or staff members; and (3) that the organization insure that fund-raising expenses, in relation to fund-raising results, are reasonable over time. The bureau notes that it is unable to verify compliance with one other fund-raising standard.

Covenant House, 346 West 17th Street, New York 10011-5002; http://www.covenanthouse.org. Meets all standards.

Natural Resources Defense Council, 40 West 20th Street, New York 10011. Meets all standards.