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Watchdog Watch

May 7, 1998 | Read Time: 4 minutes

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 they 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; World-Wide Web http://www.bbb.org; and the National Charities Information Bureau, 19 Union Square West, New York 10003; World-Wide Web http://www.give.org.

BETTER BUSINESS BUREAU

American Deputy Sheriffs’ Association, 15915 Katy Freeway, Suite 350, Houston 77094. Does not meet the following standards: (1) that the soliciting organization substantiate on request its application of funds, in accordance with donor expectations, to the programs and activities described in solicitations; (2) that the soliciting organization establish adequate controls over disbursements; and (3) that the soliciting organization have an independent governing body whose directly and/or indirectly compensated board members constitute no more than 20 per cent of the total voting membership. The bureau notes that it is unable to verify compliance with seven other standards, and that there are eight additional standards that do not currently apply to ADSA because it is a new organization.


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Amvets National Service Foundation, 4647 Forbes Boulevard, Lanham, Md. 20706-4380. As of March 16, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to determine if A.N.S.F. meets its 23 standards.

Cancer Fund of America, 2901 Breezewood Lane, Knoxville, Tenn. 37921. As of March 16, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to determine if C.F.A. meets its 23 standards.

Cystic Fibrosis Foundation, 6931 Arlington Road, Bethesda, Md. 20814. Meets all standards.

Earthjustice Legal Defense Fund (formerly Sierra Club Legal Defense Fund), 180 Montgomery Street, Suite 1400, San Francisco 94104-4209. Meets all standards.

Fire-Victims Charitable Foundation (formerly Firefighters Charitable Foundation), 1270 S.W. 13th Drive, Boca Raton, Fla. 33486. 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 adequate information to serve as a basis for informed decisions, including (but not limited to) a detailed schedule of expenses by natural classification; (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 purposes 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; and (7) that the soliciting organization have an active governing body that, among other things, meets three times annually, with meetings evenly spaced over the course of the year.


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National Arbor Day Foundation, 211 North 12th Street, Suite 501, Lincoln, Neb. 68508. Meets all standards.

National Parks and Conservation Association, 1776 Massachusetts Avenue, N.W., Washington 20036-1904. Meets all standards.

St. Labre Indian School Educational Association, P.O. Box 216, Ashland, Mont. 59003. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report that presents its eligibility to receive deductible contributions and information about its governing body and structure; (2) that the soliciting organization provide on request complete annual financial statements; and (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. The bureau notes that it is unable to verify compliance with 17 other standards due to a lack of information about St. Labre’s finances, budget, fund-raising activities, and governing body.

Save the Children Federation, 54 Wilton Road, Westport, Conn. 06880. Meets all standards.

NATIONAL CHARITIES INFORMATION BUREAU

Project Hope (People-to-People Health Foundation), the HOPE Center, Millwood, Va. 22646. Does not meet the standard calling for an organization’s governing board to have in-person, face-to-face meetings, at least twice a year, evenly spaced, with a majority of voting members in attendance at each meeting.


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