Watchdog Watch

Following are summaries of recent reports by the Council of Better Business Bureaus’ Philanthropic Advisory Service.

The service reports on whether charities meet standards for fund raising, governance, financial management, and public information. The service cautions that it does not approve or disapprove of charities, and it urges potential donors to evaluate the importance of variations from the standards. The service also notes that charities’ practices may change at any time.

In the list of organizations that do not meet the standards, information is given only on 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; World-Wide Web http://www.bbb.org.

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 provide on request an annual report; (2) that the soliciting organization’s financial statements present a detailed schedule of expenses by natural classification, (e.g., salaries, postage, utilities, etc.) that presents the natural expenses incurred for each major program and supporting activity; (3) 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 (4) that the soliciting organization have an acting governing body that, among other things, meets formally at least three times annually, with meetings evenly spaced over the course of a year, and with a majority of members in attendance (in person or by proxy) on average. The bureau notes that, as of April 13, it is unable to verify two standards regarding solicitations and governance.

American Printing House for the Blind, 1839 Frankfort Avenue, Louisville, Ky. 40206-0085; http://www.aph.org. 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, among other things, includes (but is not limited to): expenses reported in categories corresponding to the descriptions of major programs and activities contained in the annual report, solicitations, and other informational materials; and a detailed schedule of expenses by natural classification (e.g., salaries, postage, utilities, etc.) presenting the natural expenses incurred for each major program and supporting activity. The bureau notes that, as of March 25, it is unable to verify compliance with four standards regarding use of funds.

Best Friends Animal Sanctuary, Kenab, Utah 84741; http://www.bestfriends.org. Does not meet the standard calling for the soliciting organization to have an independent governing body whose directly and/or indirectly compensated board members constitute no more than one-fifth of the total voting membership of the board.

Defeat Diabetes Foundation (formerly National Diabetes Foundation), 410 150th Avenue North, Madeira Beach, Fla. 33708. As of April 2, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to determine if the Defeat Diabetes Foundation meets its 23 standards.

Earth Communications Office, 12021 Wilshire Boulevard, Suite 557, Los Angeles 90025; http://www.oneearth.org. Does not meet the standard calling for the soliciting organization to have an active governing body that, among other things, meets at least three times a year, with a majority of its members present on average.

National Foundation for Transplants (formerly Organ Transplant Fund), 1102 Brookfield, Suite 200, Memphis 38119; http://www.transplants.org. Meets all standards.

Operation USA (also known as Operation California), 8320 Melrose Avenue, Suite 200, Los Angeles 90069; http://www.opusa.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 soliciting organization to have an active governing body that, among other things, meets at least three times a year. The bureau notes that, as of April 22, it is unable to verify whether Operation USA meets one standard regarding fund raising.

Physicians Committee for Responsible Medicine, 5100 Wisconsin Avenue, N.W., Suite 404, Washington 20016; http://www.pcrm.org. Does not meet the standard calling for the soliciting organization to provide on request an annual report in the form of a single document that presents the organization’s purposes; descriptions of overall programs, activities, and accomplishments; eligibility to receive deductible contributions; information about the governing body and structure; and information about financial activities and financial position.

Produce for Better Health Foundation, 5301 Limestone Road, Suite 101, Wilmington, Del. 19808-1249; 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.

Rev. Ike, P.O. Box 9000, Boston 02205-9933. As of May 4, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to determine if Rev. Ike meets its 23 standards.

St. Matthew 18:19 Publishing (also known as Church and Bible Study in the Home by Mail), P.O. Box 21210, Tulsa, Okla. 74121-9938. As of May 3, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to determine if St. Matthew 18:19 Publishing meets its 23 standards.

Survivors and Victims Empowered, P.O. Box 3030, Lancaster, Pa. 17604-3030. As of April 15, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to determine if Survivors and Victims Empowered meets its 23 standards.

United Care USA, P.O. Box 14191, Fort Worth 76117; http://www.unitedcareusa.org. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report in the form of a single document that presents the organization’s purposes; descriptions of overall programs, activities, and accomplishments; eligibility to receive deductible contributions; information about the governing body and structure; and information about financial activities and financial position; (2) that the soliciting organization provide on request complete audited financial statements that are prepared in accordance with generally accepted accounting principles and, when total annual income exceeds $100,000, the financial statements are audited in accordance with generally accepted auditing standards; (3) that the soliciting organization’s financial statements present adequate information to serve as a basis for informed decisions; (4) 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 (5) that the soliciting organization have an independent governing body whose directly and/or indirectly compensated board members constitute no more than one-fifth of the total voting membership of the board. The bureau notes that, as of March 18, it is unable to verify United Care USA’s compliance with 10 additional standards on use of funds, solicitations, and fund raising.

Wilderness Society, 900 17th Street, N.W., Washington 20006-2596; http://www.wilderness.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.

Wishing Well Foundation USA, 3929 Veterans Boulevard, Suite 303, Metairie, La. 70002; http://www.wishingwellusa.org. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report in the form of a single document that presents the organization’s purposes; descriptions of overall programs, activities, and accomplishments; eligibility to receive deductible contributions; information about the governing body and structure; and information about financial activities and financial position; (2) that the soliciting organization’s financial statements present adequate information to serve as a basis for informed decisions, including, but not limited to, an accurate presentation of all fund-raising costs; (3) that a reasonable percentage, at least 50 per cent, of total income from all sources be applied to programs and activities directly related to the purpose for which the organization exists; (4) that a reasonable percentage, at least 50 per cent, of public contributions be applied to the programs and activities described in solicitations, in accordance with donor expectations; (5) that fund-raising costs be reasonable, not to exceed 35 per cent of related contributions; (6) that total fund-raising and administrative costs be reasonable, not to exceed 50 per cent of total income; (7) that direct-contact solicitations, including personal and telephone appeals identify a) the solicitor and his or her relationship to the benefiting organization, b) the benefiting organization or cause, and c) the programs and activities for which funds are requested; and (8) that the soliciting organization have a governing body that, among other things, meets three times annually, with meetings evenly spaced over the course of the year.