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Watchdog Watch

June 4, 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

Children’s Wish Foundation International, 8615 Roswell Road, Atlanta 30350-4867. 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, an accurate presentation of all fund-raising costs; (2) that a reasonable percentage of public contributions be applied to the programs and activities described in solicitations, in accordance with donor expectations; and (3) that solicitations in conjunction with the sale of goods, services, or admissions shall identify at the point of solicitation the actual or anticipated portion of the sales or admission price intended to benefit the charitable organization or cause.


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Christian Foundation for Children and Aging, One Elmwood Avenue, Kansas City, Kan. 66103-3719. Meets all standards.

Disabled Peace Officers Association, P.O. Box 1612, Los Alamitos, Cal. 90720. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report; (2) that the soliciting organization provide on request complete financial statements; (3) that the soliciting organization substantiate on request their application of funds, in accordance with donor expectations, to the programs and activities described in solicitations; and (4) that the soliciting organization establish and exercise adequate control over disbursements. The bureau notes that it is unable to verify compliance with 15 other standards.

Heart Support of America, 4873 North Broadway, Knoxville, Tenn. 37918. As of April 15, the organization had not provided current information about its finances, programs, or governance. The bureau is unable to determine if H.S.A. meets its 23 standards.

National Cancer Center, 88 Sunnyside Boulevard, Plainview, N.Y. 11803. As of March 27, the organization had not provided current information about its finances, programs, or governance. The bureau is unable to determine if N.C.C. meets its 23 standards.

NATIONAL CHARITIES INFORMATION BUREAU

Cancer Care, 1180 Avenue of the Americas, New York 10036. Meets all standards.


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Food for the Hungry, 7729 East Greenway Road, Scottsdale, Ariz. 85260. Does not meet the following standards: (1) that the organization’s governing board have an individual attendance policy; (2) that the board have policy guidelines to avoid material conflicts of interest involving board or staff members; (3) that the board have a policy promoting pluralism and diversity within the organization’s board, staff, and constituencies; and (4) that the organization’s annual report include an explicit narrative description of the organization’s major activities, presented in the same major categories and covering the same fiscal period as the audited financial statements. The bureau notes that as of March 23, insufficient information was provided to form a conclusion with regard to the standard calling for the board to have no material conflicts of interest; and that there was a question as to whether Food for the Hungry insures that fund-raising expenses, in relation to fund-raising results, are reasonable over time.

National Council of Negro Women, 633 Pennsylvania Avenue, N.W., Washington 20004. Does not meet the following standards: (1) that the organization’s governing board have specific terms of office for its officers and members; (2) that the board 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; (3) that the board have policy guidelines to avoid material conflicts of interest involving board or staff members; (4) that the organization spend at least 60 per cent of annual expenses for program activities; (5) that the organization insure that fund-raising expenses, in relation to fund-raising results, are reasonable over time; and (6) that the organization prepare a detailed annual budget.

Pathfinder International, Nine Galen Street, Suite 21, Watertown, Mass. 02172. Meets all standards.

Union of Concerned Scientists, Two Brattle Square, Cambridge, Mass. 02238. Meets all standards.

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