Most of us have been inundated with media cries for financial help for the victims of the earthquake in Haiti. As responsible citizens and business owners, we need to be diligent to make sure that our donations to this relief effort truly make it to the people who are hurting the most.
For whatever reason, some people and organizations prey on the generosity of the masses at a time like this and take advantage of the tenderhearted who just want to do something to help.
This is why it is important to make sure the organization you are donating to is accountable and using the money for what it was intended for.
So how do you know if an organization is reputable?
I believe in giving people the benefit of the doubt and truly believe that organizations that exist to help others in time of crisis have good intentions and work really hard to make a difference.
However, not all organizations are business savvy and may lack some of the fundamental core business processes that help an organization succeed both financially, but also in achieving its core mission.
The Better Business Bureau (BBB) identified this as a problem and has developed the BBB Wise Giving Alliance Standards for Charity Accountability. These standards were developed to assist donors in making sound giving decisions and to foster public confidence in charitable organizations. The standards seek to encourage fair and honest solicitation practices, to promote ethical conduct by charitable organizations and to advance support of philanthropy.
The standards fall into four categories of accountability:
Board Governance
This section ensures that there is an active, independent and free of self-dealing board that governs the organization appropriately.
Measuring Effectiveness
This section looks at how an organization measures and assesses its effectiveness in achieving its vision. This is done by ensuring that an organization has defined, measurable goals and objectives in place and a process to evaluate the success and impact of its programs in fulfilling the goals and objectives of the organization and also identifies ways to address deficiencies. See performance management tactics.
Finances
This section of the standards seeks to ensure that the charity spends its funds honestly, prudently and in accordance with statements made in fundraising appeals.
Fundraising and Informational Materials
This section seeks to ensure that a charity’s representations to the public are accurate, complete and respectful.
If an organization can meet all the standards requirements, they can achieve the BBB Accredited Charity seal and are entered into the BBB giving guide. This seal gives a donor the confidence that the organization meets critical criteria for the oversight of the organization. To check out an organization or get more information, you can go to: http://www.bbb.org/us/charity/
I encourage you to research an organization before giving to them. However, we can’t assume that organizations that don’t apply for the BBB accreditation aren’t meeting all the criteria, but the BBB giving guide helps identify those organizations that do. Either way, giving is important, especially during times of crisis such as is going on in Haiti.
