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According to the national center for charitable statistics, there are: . 1,537,465. Non-profit organizations In the United states. According to the united way of summit county, There are approximately:. 2,500 NON-PROFIT ORGANIZATIONS IN SUMMIT COUNTY. A Large and Growing Sector .
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According to the national center for charitable statistics, there are: 1,537,465 Non-profit organizations In the United states
According to the united way of summit county, There are approximately: 2,500 NON-PROFIT ORGANIZATIONS IN SUMMIT COUNTY
Public Views on Charity Efficiency • Charitable confidence has not risen much since 2003 • American’s remain skeptical • Estimates of waste remain high • The future of the sector rest with public confidence
BBB Charity Review • The BBB system reports on thousands of national and local charities that publicly solicit donations • BBB Wise Giving Alliance reviews over 1,300 national charities • In the State of Ohio, BBBs are reporting on over 4,000 local charities • Over 5 million inquiries over the past 12 months nationally
Charity Donor Profile • Three-fourths of the population report that they have given to charity in the last year. • Most are not likely to research purchases before they buy, but describe themselves as being overall risk-averse and unwilling to take risks when making investments • Most are not fully trusting of charitable organizations • Very few completely trust online product reviews; with about half of this group ambivalent to them. However, two-fifths agree that the more ratings there are for a product, the more likely they are to trust them • Four-fifths state that once they find a brand that they like, they are likely to remain loyal to it • More than two-thirds agree that it is important for them to be up-to-date on the latest news and events Description of Charity Donors
Charity Donor Profile • Overall very similar to the population as a whole with regards to interests, consumer behavior, information trust and media consumption behavior. • This group is slightly more likely to have read magazines and newspapers in the last month • Additionally, although about equally likely to have read a national newspaper like USA Today in the last month, charity donors are more likely to have read a local newspaper during the same time period How this Group Compares to the Population as a Whole 13
Charity Donor Profile • This information identifies some notable opportunities for BBB charity review as an important resource for charity donors: • Charity donors have some skepticism of charitable organizations. Despite being risk-averse when it comes to making monetary investments, they are not very willing to take the time to conduct research before making investment decisions • They lend greater trust to online ratings, and if proven consistently accurate are willing to make decisions based on that information and trust the rating system more • This group likes to be informed, and stay up-to-date on current events—an interest reflected in their news consumption. Increasing presence in the news media will increase one’s profile among this group. Key Considerations 14
Meeting Consumers Needs • BBB helps donors find & give to charities they can trust. • Our research has shown that most donors find it difficult to know whether a charity is legitimate before they donate. By providing a thorough, thoughtful evaluation, our reports give them the information they need.
BBB Charity Reviews • Why?Because donors and businesses asked for it • Standards-based reports • Goals- Encourage informed giving- Strengthen charities
What is the benefit? Donors: • BBB Reports- free, quick way to check if charities meet high standards • BBB Seal- widely recognized, valued charity trust mark An educated donor can be your organization’s best friend!
What is the benefit? Charities: • Standards – key practices • BBB Accreditation – no cost! Charity that meets all 20 Standards is a “BBB Accredited Charity.” • BBB Seal – Optional licensing program, only for BBB Accredited Charities…great fundraising tool!
BBB Accredited Charity Seal • Optional seal, only for charities that meet all 20 BBB Charity Standards • License agreement & fee (based on annual revenue, fees range from $150-$550)
What is the benefit? • Self-regulation leads to increased trust in charities without government intervention. • Helps to expose unethical operators and divert charitable dollars to responsible organizations
BBB Standards for Charity Accountability • Created by a national panel of experts from charities, foundations, etc. • Guided by a principle of full disclosure to donors • Designed to apply to publicly soliciting organizations
Guiding Concepts for BBB Standards • Standards based charity evaluations • Accountability is more than financials • Open Process in standards application • Communicate draft findings with charity • Assist the charity by identifying what change in practice to amend findings
BBB Standards for Charity Accountability • Governance & Oversight • Reporting on Effectiveness • Finances • Solicitations & Informational Materials
50% of charities that disclose meet all 20 Standards for Charity Accountability
Top 5 BBB Charity Report Findings Annual Reports: not fancy… • Mission • Program Summary • Board & Officers List • Financial Summary- Total income, prior FY- Expenses: program, FR, admin- Ending net assets
Top 5 BBB Charity Report Findings Governance Meetings • 3 or more evenly spaced full board meetings/year • Majority in attendance • Face-to-face- One conference call may serve as one of the 3 meetings
Top 5 BBB Charity Report Findings Effectiveness Policy • Enacted by board • Policy commits to conduct performance assessments at least every 2 years • How well org is addressing its mission (e.g. strategic plan)
Top 5 BBB Charity Report Findings Effectiveness Report • Written report on organization’s performance provided to board for approval • Progress, future goals • ChartingImpact.org
Top 5 BBB Charity Report Findings Website Disclosures, If Soliciting • Annual report basics • Mailing address of charity • Access to 990- 990 in PDF or link to GuideStar 990 • Privacy policy
Informational reports may be done for organizations that: • Are less than 3 years old • Do not conduct fundraising activity • Have less than $25,000 a year in revenue
How does the BBB differ from other watchdogs? • BBBs have offered this service since the 1920s • Comprehensive Standards • In depth evaluations & reports • We work with each charity if needed to guide them towards best practices • More than just a review of IRS Form 990
Want more information? BBB of Akron • www.akron.bbb.org • Kim Ickes (kickes@akronbbb.org) Nationally Soliciting Charities • Give.org Thank you!