By Jim Winsett
Q The BBB reports on national charities. What advice do you have in selecting a worthy charity?
A You have probably seen recent news where 40 billionaires have pledged to donate a substantial portion of their wealth to charity with the hope of inspiring others to donate to worthy causes.
While the dollar amount might be less, the BBB Wise Giving Alliance encourages everyone to give like a billionaire by researching any charity before making a donation.
Every experienced philanthropist has a thorough process for vetting charities to determine which worthy causes will be able to stretch their dollar the furthest. Evaluating the effectiveness of a charity is more than just looking at the fundraising and administrative costs. Transparency, impact and accountability are also important factors that everyone should consider before he gives.
The BBB Wise Giv-
ing Alliance recommends the following five steps to give like a billionaire:
n Take the time to check the organization out with the BBB Wise Giving Alliance and the local charity registration office (usually a division of the state attorney general”s office). Do not be pressured to give before you do your research.
n Consider more than just the charity”s finances. Impressive financial ratios are not a guarantee that a charity is being run ethically and effectively. Review the BBB”s standard for charity accountability to identify features of a transparent accountable organization.
n Do not be fooled by names that look impressive or that closely resemble the name of a well-known organization. Sometimes, name similarity is used as a ploy to confuse potential donors.
n Watch out for appeals that focus solely on a problem but do not clearly explain what the charity intends to do about it. The charity”s intended program activities should be spelled out.
n If you want to consider donating to a newly established charity, take the time to review the charity”s program plans including its board of director”s approved budget. Make sure that it has the capacity to be able to follow through on its intended objectives.
Get answers to your questions each Friday from Jim Winsett, president and CEO of the Better Business Bureau Inc., which serves Southeast Tennessee and Northwest Georgia. Submit questions to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at jvass@timesfreepress.com.