Watchdog Watch

Following are summaries of recent reports by the BBB Wise Giving Alliance. This private group reports on whether charities meet standards for fund raising, governance, financial management, and public information. The alliance does not approve or disapprove of charities, and urges potential doors to evaluate the importance of variations from the standards. It also notes that charities’ practices may change at any time. For charities that do not meet the standards, details are given only on those standards that are not met. Those organizations meet all the other standards. Unless stated otherwise, the organizations are tax-exempt under Section 501(c) (3) of the Internal Revenue Code and are eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Copies of the full reports are available from the Council of Better Business Bureaus, Wise Giving Alliance, 4200 Wilson Boulevard, Suite 800, Arlington, Va. 22203; http://www.give.org.

American Association of the Deaf-Blind, 814 Thayer Avenue, Suite 302, Silver Spring, Md. 20910. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report that includes information about its purposes, current activities, governance, finances, and tax-exempt status; (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, not to exceed 35 percent of related contributions; and (5) that total fund-raising and administrative costs be reasonable, not to exceed 50 percent of total income.

Association on American Indian Affairs, Box 268, Sisseton, S.D. 57262; http://www.indian-affairs.org. Does not meet the standard calling for the soliciting organization to have an active governing body that exercises responsibility in establishing policies, retaining qualified executive leadership, and overseeing that leadership, and which meets formally at least three times annually, with meetings evenly spaced over the course of the year, and with a majority of the members in attendance (in person or by proxy) on average.

Children’s Health Fund, 317 East 64th Street, New York, N.Y. 10021; http://www.childrenshealthfund.org. Meets all standards.

Gifts in Kind International, 333 North Fairfax Street, Alexandria, Va. 22314; http://www.giftsinkind.org. Does not meet the standard calling for the soliciting organization’s financial statements to present adequate information to serve as a basis for informed decisions, including a detailed schedule of expenses by natural classification (e.g., salaries, employee benefits, occupancy, postage, etc.), presenting the natural expenses incurred for each major program and supporting activity.

Ronald McDonald House Charities, 1 Kroc Drive, Oak Brook, Ill. 60523; http://www.rmhc.org. Meets all standards.

Samaritan’s Purse, P.O. Box 3000, Boone, N.C. 28607-3000; http://www.samaritan.org. Meets all standards.

Save Our Scouts, 3904 Foothill Drive, Provo, Utah 84604; http://www.saveourscouts.com. As of July 2002, the organization had not provided current information about its finances, programs, and governance. The alliance is unable to determine if Save Our Scouts meets its standards.

Seeing Eye, P.O. Box 375, Washington Valley Road, Morristown, N.J. 07963-0375; http://www.seeingeye.org. Meets all standards.

Survivors and Victims Empowered, P.O. Box 3030, Lancaster, Pa. 17604-3030; http://www.s-a-v-e.org. As of July 2002, the organization had not provided current information about its finances, programs, and governance. The alliance is unable to determine if Survivors and Victims Empowered meets its standards.

Union of Concerned Scientists, 2 Brattle Square, Cambridge, Mass. 02238-9105; http://www.ucsusa.org. Meets all standards.

V Foundation for Cancer Research, 100 Towerview Court, Cary, N.C. 27513; http://www.jimmyv.org. Meets all standards.

Veterans of Foreign Wars of the United States, 406 West 34th Street, Kansas City, Mo. 64111; http://vfw.org. Does not meet the standard calling for the soliciting organization’s financial statements to present adequate information to serve as a basis for informed decisions, including: (1) significant categories of contributions and other income; (2) expenses reported in categories corresponding to the descriptions of major programs and activities contained in the annual report, solicitations, and other informational materials; (3) a detailed schedule of expenses by natural classification (e.g., salaries, employee benefits, occupancy, postage, etc.), presenting the natural expenses incurred for each major program and activity; (4) an accurate presentation of all fund-raising and administrative costs; and (5) specification of the total cost of a multipurpose activity and the basis for allocating its costs, when a significant activity combines fund raising and one or more other purposes (e.g., door-to-door canvassing combining fund raising and social advocacy, or television broadcasts combining fund raising and religious ministry, or a direct-mail campaign combining fund raising and public education).

Because the alliance disagreed with how Veterans of Foreign Wars of the United States recognized direct-mail costs within its audit report for the fiscal year ending August 31, 2000, it is unable to verify the group’s compliance with four additional fund-raising standards.