1 ACCORDING TO THE NATIONAL CENTER FOR CHARITABLE STATISTICS, THERE ARE: 1,537,465 NON-PROFIT ORGANIZATIONS IN THE UNITED STATES

2 ACCORDING TO THE UNITED WAY OF SUMMIT COUNTY, THERE ARE APPROXIMATELY: 2,500 NON-PROFIT ORGANIZATIONS IN SUMMIT COUNTY

A Large and Growing Sector 3

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 4

Charitable Accountability Standards 5

Feeding America and the Better Business Bureau 6

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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 8

Charity Donor Profile 10

Charity Donor Profile 11

Charity Donor Profile 12 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 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 13 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 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

Charity Donor Profile 14 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. 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

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. 15

BBB Charity Reviews Why? Because donors and businesses asked for it Standards-based reports Goals - Encourage informed giving - Strengthen charities 17

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! 18

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! 19

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) 20

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 21

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 22

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 23

BBB Standards for Charity Accountability Governance & Oversight Reporting on Effectiveness Finances Solicitations & Informational Materials 24

25 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 26

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 27

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) 28

Top 5 BBB Charity Report Findings Effectiveness Report Written report on organization’s performance provided to board for approval Progress, future goals ChartingImpact.org 29

Top 5 BBB Charity Report Findings Website Disclosures, If Soliciting Annual report basics Mailing address of charity Access to in PDF or link to GuideStar 990 Privacy policy 30

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 31

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

Want more information? BBB of Akron Kim Ickes Nationally Soliciting Charities Give.org Thank you! 33