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 Children’s Cancer Association, 300 Lackawanna Avenue, West Paterson, N.J. 07424. 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 organization provide on request complete annual financial statements, audited when income exceeds $100,000; (3) that financial statements should present adequate information to serve as a basis for informed decisions, including a detailed schedule of expenses by natural classification, presenting the natural expenses incurred for each major program and supporting activity, and the accurate presentation of all fund-raising and administrative costs; (4) that the organization substantiate on request its application of funds, in accordance with donor expectations, to the programs and activities described in solicitations; and (5) that the organization have an independent governing body whose compensated members constitute no more than 20 percent of the total voting membership.

As of December 2002, 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 American Children’s Cancer Association meets 11 additional standards.

Box Project, P.O. Box 435, 87 East Street, Plainville, Conn. 06062; http://www.boxproject.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 organization’s financial statements 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, a detailed schedule of expenses by natural classification, presenting the natural expenses incurred for each major program and supporting activity, and the accurate presentation of all fund-raising and administrative costs; (3) that the organization substantiate on request its application of funds, in accordance with donor expectations, to the programs and activities described in solicitations; and (4) that solicitations and informational materials, distributed by any means, be accurate, truthful, and not misleading, both in whole and in part.

Cousteau Society, 870 Greenbrier Circle, Suite 402, Chesapeake, Va. 23320; http://www.cousteausociety.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 total fund-raising and administrative costs be reasonable, not exceeding 50 percent of total income; (3) that the organization have an active governing body that, among other things, meets at least three times a year, with a majority of its members present on average; and (4) that the organization have an independent governing body whose compensated board members constitute no more than 20 percent of the total voting membership.

Michael J. Fox Foundation for Parkinson’s Research, Grand Central Station, P.O. Box 4777, New York, N.Y. 10163; http://www.michaeljfox.org. Meets all standards.

National Jewish Medical and Research Center, 1400 Jackson Street, Denver, Colo. 80206; http://www.nationaljewish.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 decision making, including a detailed schedule of expenses by natural classification, presenting the natural expenses incurred for each major program and supporting activity.

Shared Hope International, 2906 East Evergreen Boulevard, Vancouver, Wash. 98661; http://www.sharedhope.org. Does not meet the standards that call for the soliciting organization to provide on request an annual report that includes information about its purposes, current activities, governance, finances, and tax-exempt status; and 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.