Watchdog Watch
May 3, 2001 | Read Time: 5 minutes
Following are summaries of recent reports by the Council of Better Business Bureaus’ Philanthropic Advisory Service.
This private organization reports on whether charities meet standards for fund raising, governance, financial management, and public information. The service 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.
Copies of the full reports are available from the Council of Better Business Bureaus, Philanthropic Advisory Service, 4200 Wilson Boulevard, Suite 800, Arlington, Va. 22203; http://www.bbb.org.
Buoniconti Fund to Cure Paralysis, 1095 N.W. 14 Terrace, Miami, Fla. 33136; http://www.miamiproject.miami.edu. Does not meet the standard calling for the soliciting organization to provide on request an annual report that contains information about the organization’s governing body, or the standard calling for the governing body to meet at least three times a year, with a majority of its members present on average.
Focus on the Family, 8605 Explorer Drive, Colorado Springs, Colo. 80920; http://www.family.org. Does not meet the standard calling for organizations to supply on request complete financial statements that include a statement of functional allocation of expenses, in addition to such statements required by generally accepted accounting principles, or the standard calling for organizations to substantiate on request their application of funds, in accordance with donor expectations, to the programs and activities in solicitations.
As of April 3, the organization had not provided current information on its solicitations and information materials. The service is unable to determine if Focus on the Family meets the following standards: (1) that solicitations and information materials, distributed by any means, shall be accurate, truthful, and not misleading, both in whole and in part; (2) that solicitations shall include a clear description of the programs and activities for which funds are requested; (3) that direct-contact solicitations, including personal and telephone appeals, identify the solicitor and his/her relationship to the benefiting organization, the benefiting organization or cause, and the programs and activities for which funds are requested; and (4) that solicitations in conjunction with the sale of goods, services, or admissions identify at the point of solicitation the benefiting organization, a source from which written information is available, and the actual or anticipated portion of the sale or admission price to benefit the charitable organization or cause.
Food for the Hungry, 7729 East Greenway Road, Scottsdale, Ariz. 85260; http://www.fh.org. Meets all standards.
Help in Crisis International, 4401 East West Highway, Suite 104, Bethesda, Md. 20814; http://www.helpincrisis.org. Does not meet the following standards: (1) that the organization supply on request an annual report presenting 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 organization’s financial statements present adequate information to serve as a basis for informed decisions, including significant categories of contributions and other income, expenses reported in categories corresponding to the description of major programs and activities contained in the annual report, solicitations, and other informational materials, and a statement of functional allocation of expenses; (3) that organizations substantiate on request their application of funds, in accordance with donor expectations, to the programs and activities in solicitations; and (4) that the 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.
As of March 23, the organization had not provided complete current financial, fund-raising, and governance information. The service is unable to verify if Help in Crisis International complies with 12 of its standards regarding use of funds, solicitations and informational materials, fund-raising practices, and governance.
I-Safe America, 2604 B El Camino Real, No. 387, Carlsbad, Calif. 92008; http://www.isafe.org. Meets all standards that can be applied to new organizations.
Laubach Literacy, 1320 Jamesville Avenue, Syracuse, N.Y. 13210-4241; http://www.laubach.org. Meets all standards.
National Children’s Leukemia Foundation, 172 Madison Avenue, Suite 502, New York, N.Y. 10016. The group has not provided current information about its finances, programs, and governance. The service is unable to verify if the National Children’s Leukemia Foundation complies with its standards.
National Parks Conservation Association, 1300 19th Street, N.W., Suite 300, Washington, D.C. 20036; http://www.npca.org. Meets all standards.
National Right to Life Committee, 419 Seventh Street, N.W., Suite 500, Washington, D.C. 20004. As of April 10, the group had not provided current information about its finances, programs, and governance. The service is unable to verify if the National Right to Life Committee complies with its standards.
National World War II Memorial Fund, Courthouse Plaza II, Suite 501, 2300 Clarendon Boulevard, Arlington, Va. 22201; http://www.wwiimemorial.com. Does not meet the standard calling for organizations to provide on request an annual report 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 position, or the standard calling for soliciting organizations’ financial statements to present adequate information to serve as a basis for informed decisions, including a statement of functional allocation of expenses, in addition to such statements required by generally accepted accounting principles.
As of February 7, the group had not provided copies of its fund-raising agreements. The service is unable to verify if the National World War II Memorial Fund complies with the standard that calls for soliciting organizations to establish and exercise controls over fund-raising activities conducted for their benefit by staff, volunteers, consultants, contractors, and controlled or affiliated entities, including commitment to writing of all fund-raising contracts and agreements.
The Smile Train, 245 Fifth Avenue, Suite 2201, New York, N.Y. 10016; http://www.smiletrain.org.. Meets all standards that can be applied to new organizations.
St. Joseph’s Indian School and Missions, North Main Street, Chamberlain, S.D. 57326; http://www.stjo.org. Meets all standards.