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 donors to evaluate the importance of variations from the standards. It also notes 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. 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, Arlington, Va. 22203; http://www.give.org.

American Liver Foundation, 75 Maiden Lane, Suite 603, New York, N.Y. 10038; http://www.liverfoundation.org. Meets all standards.

American Rivers, 1025 Vermont Avenue, N.W., Suite 720, Washington, D.C. 20005; http://www.americanrivers.org. Meets all standards.

Animal Legal Defense Fund, 127 Fourth Street, Petaluma, Calif. 94952-3005; http://www.aldf.org. Meets all standards.

Center for National Independence in Politics, 1 Common Ground, Philipsburg, Mont. 59858; http://www.vote-smart.org. 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 the soliciting organization provide on request complete annual financial statements, audited when total annual income exceeds $100,000, that present the overall financial activities and financial position of the organization, and that are prepared in accordance with generally accepted accounting principles and reporting practices; (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; and (4) that the soliciting organization have an active governing body that meets at least three times a year, with a majority of its members present on average.

Children’s Charity Fund, 3412 Clark Road, Suite 223, Sarasota, Fla. 34231-8406. 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, finances, and tax-exempt status; (2) that the soliciting organization’s financial statements present adequate information to serve as a basis for informed decisions, including significant categories of contributions and other income; (3) 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; (4) 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; (5) that fund-raising costs be reasonable, not exceeding 35 percent of related contributions; (6) that total fund-raising and administrative costs be reasonable, not exceeding 50 percent of total income; and (7) 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 January 2003, the organization had not provided complete information about its use of funds, solicitations and informational materials, fund-raising practices, and governance. The alliance is unable to determine if the Children’s Charity Fund meets 11 additional standards.

Christian Appalachian Project, 322 Crab Orchard Street, Lancaster, Ky. 40446-0001; http://www.chrisapp.org. Meets all standards.

Death With Dignity Alliance, 11 Dupont Circle, N.W., Suite 202, Washington, D.C. 20036; http://www.dwda.org. 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, 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 exceeding 35 percent of related contributions; (5) that total fund-raising and administrative costs be reasonable, not exceeding 50 percent of total income; and (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.

As of February 2003, the organization had not provided complete information about its governance. The alliance is unable to determine if the Death With Dignity Alliance meets one additional standard.

Pancreatic Cancer Action Network, 2221 Rosecrans Avenue, Suite 131, El Segundo, Calif. 90245; http://www.pancan.org. Does not meet the standard that calls for the soliciting organization’s financial statements to present adequate information to serve as a basis for informed decisions, including expenses reported in categories corresponding to the descriptions of major programs and activities contained in informational materials, and a detailed schedule of expenses by natural classification, presenting the natural expenses incurred for each major program and supporting activity.

St. Joseph’s Indian School and Missions, 1301 North Main Street, Chamberlain, S.D. 57326; http://www.stjo.org. Meets all standards.

Vietnam Veterans Memorial Fund, 1023 15th Street, N.W., Second Floor, Washington, D.C. 20005; http://www.vvmf.org. Meets all standards.

Wigs for Kids, 21330 Center Ridge Road, Suite C, Rocky River, Ohio 44116; http://www.wigsforkids.org. Does not meet the following standards: (1) that the soliciting organization provide on request an annual report that includes information about the organization’s purposes, current activities, finances, and tax-exempt status; (2) that the soliciting organization provide on request complete annual financial statements, audited when total annual income exceeds $100,000, that present the overall financial activities and financial position of the organization, and that are prepared in accordance with generally accepted accounting principles and reporting practices; (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; (4) that the organization establish and exercise adequate controls over disbursements; (5) that solicitations in conjunction with the sale of goods, services, or admissions identify at the point of solicitation the benefiting organization, a source from which written information is available, and the actual or anticipated portion of the sale or admission price to benefit the charitable organization or cause; and (6) that the organization establish and exercise controls over fund-raising activities conducted for their benefit by staff, volunteers, consultants, contractors, and controlled or affiliated entities, including commitment to writing of all fund-raising contracts and agreements.

As of February 2003, the organization had not provided complete information about its public accountability, use of funds, solicitations and informational materials, fund-raising practices, and governance. The alliance is unable to determine if Wigs for Kids meets 12 additional standards.