Watchdog Watch

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

AMC Cancer Research Center, 1600 Pierce Street, Denver 80214. 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.

American Veterans Relief Fund, 5930-E Royal Lane, Suite 236, Dallas 75230. As of November 17, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to verify if A.V.R.F. meets its 23 standards.

Asian Relief, 4815 Edmonston Road, Hyattsville, Md. 20781. As of November 17, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to verify if Asian Relief meets its 23 standards.

Catholic Charities USA, 1731 King Street, Suite 200, Alexandria, Va. 22314. Meets all standards.

Children Incorporated, P.O. Box 5381, 1000 Westover Road, Richmond, Va. 23220-0381. Meets all standards.

Children’s Charity Fund, 7061 South Tamiami Trail, Suite 206, Sarasota, Fla. 34231. As of December 8, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to verify if the C.C.F. meets its 23 standards.

Children’s Organ Transplant Association, 2501 Cota Drive, Bloomington, Ind. 47403. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report that includes information on its financial activities, financial position, and eligibility to receive deductible contributions; and (2) that the soliciting organization substantiate on request its application of funds, in accordance with donor expectations, to the programs and activities described in solicitations. As of October 29, the bureau had not received requested information on COTA’s restricted funds and was therefore unable to verify compliance with two standards that apply to use of funds.

City of Hope, 208 West Eighth Street, Los Angeles 90014. Meets all standards.

Combined Health Appeal of America, 1745 Old Spring House Lane, Suite 413, Atlanta 30338. Meets all standards.

Lymphoma Research Foundation of America, 8800 Venice Boulevard, Suite 207, Los Angeles 90034. Does not meet the following standards: (1) that the soliciting organization provide an annual report, in the form of a single document, that presents its purpose; 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 substantiate on request its application of funds, in accordance with donor expectations, to the programs and activities described in solicitations; (3) that the soliciting organization establish and exercise adequate controls over disbursements; (4) that solicitations in conjunction with the sale of goods, services, or admissions 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; and (5) that the soliciting organization have an active governing body that, among other things, meets at least three times annually, with meetings evenly spaced over the course of a year and with a majority of the members in attendance (in person or by proxy), on average.

National Anti-Vivisection Society, 53 West Jackson Boulevard, Suite 1552, Chicago 60604. Meets all standards.

Simon Wiesenthal Center, 9760 West Pico Boulevard, Los Angeles 90035. Does not meet the standard calling for the soliciting organization to have a governing board whose members meet formally at least three times annually, with a majority of the members in attendance (by person or proxy), on average.

Vietnam Veterans of America, 1224 M Street, N.W., Washington 20005. As of October 24, the organization had not provided current information about its finances, programs, and governance. The bureau is unable to verify if the V.V.A. meets its 23 standards.

The Wellness Community-National, 10921 Reed Hartman Highway, Suite 215, Cincinnati 45242. 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 breakdown of expenses into program services, fund raising, and administrative categories, 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; 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.

World Opportunities International/Help the Children, 1415 Cahuenga Boulevard, Hollywood, Cal. 90028. Meets all standards.

World Relief Corporation, P.O. Box WRC, Wheaton, Ill. 60189. Meets all standards.

Y-ME National Breast Cancer Organization, 212 West Van Buren Street, Fifth Floor, Chicago 60607-3908. Does not meet the following standards: (1) that the soliciting organization provide on request complete annual financial statements that present its overall financial activities and financial position, are prepared in accordance with generally accepted accounting principles and reporting practices, and include the auditor’s or treasurer’s report, notes, and any supplementary schedules; (2) that the soliciting organization’s financial statements present adequate information to serve as a basis for informed decisions, including a detailed schedule of expenses by natural classification that presents the natural expenses incurred for each major program and supporting activity; (3) that solicitations and informational materials, distributed by any means, shall be accurate, truthful and not misleading, both in whole and in part; (4) that solicitations in conjunction with the sale of goods, services, or admissions 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; and (5) that the soliciting organization establish and exercise controls over fund-raising activities conducted for its benefit by staff, volunteers, consultants, contractors, and controlled or affiliated entities, including commitment to writing of all fund-raising contracts and agreements. The bureau notes that it is unable to verify compliance with four additional standards that relate to the use of funds and fund-raising activities.

NATIONAL CHARITIES INFORMATION BUREAU

American Printing House for the Blind, 1839 Frankfort Avenue, P.O. Box 6085, Louisville, Ky. 40206-0085. Does not meet the following standards: (1) 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; (2) that the annual report include audited financial statements or, at a minimum, a comprehensive financial summary that a) identifies all revenue in significant categories, b) reports expenses in the same program, management, and fund-raising categories as in the audited financial statements, and c) reports ending net assets; (3) that the organization supply complete financial statements that fully disclose economic resources and obligations, including transactions with related parties and affiliated organizations, significant events affecting finances, and significant categories of income and expense; and (4) that the financial statements also supply a statement of the functional allocation of expenses, in addition to such statements required by generally accepted accounting principles.

Cancer Fund of America, 2901 Breezewood Lane, Knoxville, Tenn. 37921-1099. As of December 5, C.F.A. had not responded to the bureau’s requests with sufficient information to prepare a regular report. Based on C.F.A.’s 1996 annual report to the Pennsylvania Bureau of Charitable Organizations, including its I.R.S. Form 990 and audited financial statements, and on information forwarded by contributors or previously in the bureau’s files, C.F.A. appears not to meet the following standards: (1) that the organization spend at least 60 per cent of annual expenses for program activities; (2) that the organization insure that fund-raising expenses, in relation to fund-raising results, are reasonable over time; and (3) that the organization not have a persistent deficit in net current assets.

Cancer Research Fund of the Damon Runyon-Walter Winchell Foundation, 675 Third Avenue, 25th Floor, New York 10017. Does not meet the standard calling for the organization to have net assets available for use in the following fiscal year not usually more than twice the current year’s expenses or twice the next year’s budget, whichever is higher.

Chemotherapy Foundation, 183 Madison Avenue, Suite 403, New York 10016. As of December 3, the Chemotherapy Foundation had not responded to the bureau’s requests with sufficient information to prepare a regular report. Based on the Chemotherapy Foundation’s 1996 I.R.S. Form 990 and on information forwarded by contributors or previously in the bureau’s files, the Chemotherapy Foundation appears not to meet the following standards: (1) that the governing board have no material conflicts of interest involving board or staff members; and (2) that the organization have net assets available for use in the following fiscal year not usually more than twice the current year’s expenses or twice the next year’s budget, whichever is higher.

Children’s Wish Foundation International, 8615 Roswell Road, Atlanta 30350-4867. As of November 25, C.W.F.I. had not responded to the bureau’s requests with sufficient information to prepare a regular report. Based on C.W.F.I.’s 1996 annual report to the Pennsylvania Bureau of Charitable Organizations, including its I.R.S. Form 990 and audited financial statements, and on information forwarded by contributors or previously in the bureau’s files, C.W.F.I. appears not to meet the following standards: (1) that the governing board have no more than one paid staff member, usually the chief staff officer, who shall not chair the board or serve as treasurer; (2) that the governing board have no material conflicts of interest involving board or staff members; and (3) that the organization insure that fund-raising expenses, in relation to fund-raising results, are reasonable over time. The bureau notes there is insufficient information to determine if C.W.F.I. meets the standard calling for the organization to spend at least 60 per cent of annual expenses for program activities.

Mothers Against Drunk Driving, 511 East John Carpenter Freeway, Suite 700, Irving, Tex. 75062. As of October 31, MADD had not provided sufficient information about its finances, programs, and governance for the bureau to prepare a regular report.

National Cancer Center, 88 Sunnyside Boulevard, Suite 307, Plainview, N.Y. 11803. As of December 2, N.C.C. had not responded to the bureau’s requests with sufficient information to prepare a regular report. Based on N.C.C.’s 1996 annual report to the Pennsylvania Bureau of Charitable Organizations, including its I.R.S. Form 990 and audited financial statements, and on information forwarded by contributors or previously in the bureau’s files, N.C.C. appears not to meet the following standards: (1) that the governing board have specific terms of office for its officers and members; (2) that the organization spend at least 60 per cent of annual expenses for program activities; and (3) that the organization insure that fund-raising expenses, in relation to fund-raising results, are reasonable over time.

National Childhood Cancer Foundation, 440 East Huntington Drive, Suite 300, P.O. Box 60012, Arcadia, Cal. 91066-6012. Meets all standards.

National Children’s Cancer Society, 1015 Locust, Suite 1040, St. Louis 63101. As of December 2, N.C.C.S. had not responded to the bureau’s requests with sufficient information to prepare a regular report. Based on N.C.C.S.’s 1996 annual report to the Pennsylvania Bureau of Charitable Organizations, including its I.R.S. Form 990 and audited financial statements, and on information forwarded by contributors or previously in the bureau’s files, N.C.C.S. appears not to meet the standard calling for the organization to insure that fund-raising expenses, in relation to fund-raising results, are reasonable over time.

Project Cure, 16801 Addison Road, Suite 207, Dallas 75248. As of December 3, Project Cure had not responded to the bureau’s requests with sufficient information to prepare a regular report. Based on Project Cure’s 1996 registration statement filed with the Pennsylvania Bureau of Charitable Organizations, including its I.R.S. Form 990 and audited financial statements, and on information forwarded by contributors or previously in the bureau’s files, Project Cure appears not to meet the following standards: (1) that the governing board have a minimum of five voting members; (2) that the board have no more than one paid staff member, usually the chief staff officer, who shall not chair the board or serve as treasurer; (3) that fund-raising practices encourage voluntary giving and not apply unwanted pressure; (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; (6) that the organization not have a persistent deficit in net current assets; and (7) that the organization supply on request complete financial statements that are prepared in conformity with generally accepted accounting principles, accompanied by a report of an independent certified public accountant, and reviewed by the board.

Rails-to-Trails Conservancy, 1100 17th Street, N.W., 10th Floor, Washington 20036. Does not meet the following standards: (1) that the organization spend at least 60 per cent of annual expenses for program activities; and (2) that the organization insure that fund-raising expenses, in relation to fund-raising results, are reasonable over time.