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

BETTER BUSINESS BUREAU

Amnesty International of the USA, 322 Eighth Avenue, 10th Floor, New York 10001; http://www.amnesty-usa.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 the actual or anticipated portion of the sales or admission price to benefit the charitable organization or cause.

Jewish National Fund, 42 East 69th Street, New York 10021; http://www.jnf.org. Does not meet the standard calling for a reasonable percentage, at least 50 percent, of total income from all sources to be applied to programs and activities directly related to the purposes for which the organization exists, or the standard calling for a reasonable percentage, at least 50 percent, of public contributions to be applied to the programs and activities described in solicitations, in accordance with donor expectations.

Kiwanis International Foundation, 3636 Woodview Terrace, Indianapolis 46268-3196; http://www.kiwanis.org. Meets all standards.

Law Enforcement Legal Defense Fund, Federal Bar Building, 1815 H Street, N.W., Suite 1001, Washington 20006. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report; (2) that a reasonable percentage, at least 50 percent, of total income from all sources be applied to programs and activities directly related to the purposes for which the organization exists; (3) that a reasonable percentage, at least 50 percent, of public contributions be applied to the programs and activities described in solicitations, in accordance with donor expectations; (4) that fund-raising costs be reasonable by not exceeding 35 percent of related contributions; (5) that total fund-raising and administrative costs be reasonable by not exceeding 50 percent of total income; (6) 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 (7) that the soliciting organization have an independent governing body whose compensated board members constitute no more than 20 percent of the total voting membership. The bureau notes that it is unable to verify compliance with four additional standards.

Vietnam Veterans of America, 1224 M Street, N.W., Washington 20005-5183; http://www.vva.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; (2) that the soliciting organization provide on request complete audited financial statements that are prepared in accordance with generally accepted accounting principles and reporting practices; (3) that 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 that presents the expenses incurred for each major program and supporting activity; (4) that a reasonable percentage, at least 50 percent, of total income from all sources be applied to programs and activities directly related to the purposes for which the organization exists; (5) that fund-raising costs be reasonable by not exceeding 35 percent of related contributions; and (6) that total fund-raising and administrative costs be reasonable by not exceeding 50 percent of total income. The bureau notes it is unable to verify compliance with eight additional standards.

NATIONAL CHARITIES INFORMATION BUREAU

Center for Victims of Torture, 717 East River Road, Minneapolis 55455; http://www.cvt.org. Meets all standards.

Hispanic Scholarship Fund, 1 Sansome Street, Suite 1000, San Francisco 94104; http://www.hsf.net. Meets all standards.

Media Research Center and its project Parents Television Council, 113 South West Street, Suite 200, Alexandria, Va. 22315; http://www.mediaresearch.org. Does not meet the following standards: (1) that the organization’s governing board have an individual-attendance policy; (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 no more than one paid staff member, usually the chief staff officer, who shall not chair the board or serve as treasurer; (4) that the board have policy guidelines to avoid material conflicts of interest involving board or staff members; (5) that the board have a policy promoting pluralism and diversity within the organization’s board, staff, and constituencies; (6) that the organization spend at least 60 percent of annual expenses for program activities; (7) that the organization ensure that fund-raising expenses, in relation to fund-raising results, are reasonable over time; and (8) that the organization 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.

Pan American Development Foundation, 2600 16th Street, N.W., Washington 20009. Does not meet the standard calling for the organization’s annual report to include audited financial statements or, at a minimum, a comprehensive financial summary.

World Resources Institute, 10 G Street, N.W., Suite 800, Washington 20002. Meets all standards.