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The Honolulu Advertiser
Posted on: Friday, December 19, 2003

ISLAND VOICES
Donors often turn to BBB

By Anne Deschene

Anne Deschene is president and CEO of the Better Business Bureau of Hawaii.

Deschene
Some issues of accountability by nonprofits were highlighted by Hugh R. Jones and Kelvin Taketa in the Nov. 23 Focus. John Flanagan's Dec. 2 commentary responded to some points that Jones raised.

Unfortunately, the one program in the nation designed to help donors make informed decisions was not referenced as a unique resource by any of these articles.

This is the Better Business Bureau Wise Giving Alliance, which is the only program creating charity evaluations for the public, according to established accountability standards for national and local charities. This resource is available daily at no cost.

Most charities operate well within the law, but the charity earns public support if it voluntarily shows its commitment to openness and ethical conduct and demonstrates that its efforts are focused on its mission.

In a 2001 survey by Princeton Research Survey Associates, charity finances consistently rose to the top of the list whenever Americans are asked to rate the importance of different kinds of information useful in evaluating charities.

Highlights of the survey show that people want to hold charities to strict standards for fund uses. For example, at least 70 percent to 80 percent of total expenses should be spent on programs rather than fund-raising or administrative costs. Donors also want to know about the accuracy of fund-raising appeals, the willingness to disclose information about operations and the effectiveness of programs.

Donors say it is difficult to know whether or not a charity asking for support is legitimate, and only 50 percent credit charities with making the appropriate information available.

Information and disclosure help build donor confidence.

Taketa said boards need to "engage in serious discussion about governance, best practices and common principles." The Better Business Bureau has been identifying sound practices, setting guidelines and voluntary standards for decades.

Visit our Web site, www.hawaii.bbb.org, or www.give.org for current charity reports and tips on giving wisely.