Watchdog Watch

Following are summaries of recent reports by the BBB Wise Giving Alliance. This private group reports on whether charities meet standards for fund raising, governance, financial management, and public information. The alliance does not approve or disapprove of charities, and urges potential donors to evaluate the importance of variations from the standards. It also notes 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.

In March 2003, the BBB Wise Giving Alliance revised its standards (The Chronicle, March 20). Some of the reports summarized below were produced under the new standards, while others were based on the old standards.

Copies of the full reports are available from the Council of Better Business Bureaus, Wise Giving Alliance, 4200 Wilson Boulevard, Arlington, Va. 22203; http://www.give.org.

ADSA, also known as American Deputy Sheriffs’ Association, 702 South Grand Street, Monroe, La. 71201; http://www.deputysheriff.org. Does not meet the standards calling for a charitable organization to: (1) have a board of directors that provides adequate oversight of the charity’s operations and staff; (2) spend at least 65 percent of its expenses on program activities; (3) spend no more than 35 percent of contributions on fund raising; (4) make available annual financial statements prepared in accordance with generally accepted accounting principles; (5) include in its financial statement a breakdown of expenses (such as salaries, travel, and postage) that shows what portion of those expenses is dedicated to program, fund-raising, and administrative activities; (6) have a board-approved annual budget for its current fiscal year that outlines expenses for major program activities, fund raising, and administration; and (7) have an accessible annual report that includes a mission statement; program accomplishments; a roster of officers and members of the board of directors; and financial information such as net assets, income, and expenses. As of October 2003, the organization had not provided complete information about its fund raising and governance. Therefore, the alliance is unable to determine if ADSA meets four additional standards.

Association for Disabled Firefighters, 1118 East Chestnut Avenue, Santa Ana, Calif. 92701; http://www.adisabledfirefighter.org. As of October 2003, the organization had not provided current information about its finances, programs, and governance. The alliance is unable to determine if the Association for Disabled Firefighters meets the standards.

Citizens Against Government Waste, 1301 Connecticut Avenue, N.W., Suite 400, Washington, D.C. 20036; http://www.cagw.org. Does not meet the standards calling for a charitable organization to: (1) have no more than one compensated person, or 10 percent of the board, whichever is greater, serving as a voting member of the board, and for compensated members not to serve as the board’s chair or treasurer; (2) accurately report expenses in financial statements; (3) have a board-approved annual budget for its current fiscal year that outlines expenses for major program activities, fund raising, and administration; and (4) have an accessible annual report that includes a mission statement; program accomplishments; a roster of officers and members of the board of directors; and financial information such as net assets, income, and expenses. As of November 2003, the organization had not provided complete information about its governance. The alliance is unable to determine if Citizens Against Government Waste meets three additional standards.

Morris Animal Foundation, 45 Inverness Drive East, Englewood, Colo. 80112; http://www.morrisanimalfoundation.org. Does not meet the standard calling for a charitable organization to avoid accumulating funds that could be used for program activities. The charity’s unrestricted net assets should not be more than three times the size of the past year’s expenses or three times the size of the current year’s budget, whichever is higher.

National Kidney Foundation, 30 East 33rd Street, New York, N.Y. 10016; http://www.kidney.org. Meets all standards.

Share Our Strength, 733 15th Street, N.W., Suite 640, Washington, D.C. 20005; http://www.strength.org. Does not meet the standards calling for a charitable organization to: (1) have no more than one compensated person, or 10 percent of the board, whichever is greater, serving as a voting member of the board, and for compensated members not to serve as the board’s chair or treasurer; (2) have a board-approved annual budget for its current fiscal year that outlines expenses for major program activities, fund raising, and administration; and (3) clearly disclose how the charity benefits from the sale of products or services that state or imply that a charity will benefit from a consumer’s purchase or business transaction.