Adam Goozh, CreateHope's CEO Raises the Bar, Calling for Higher Standards from Corporate Charitable Giving Providers.

Business Editors

BETHESDA, Md.--(BUSINESS WIRE)--June 9, 2003

"All Providers Including United Ways, Other Non-Profits and For-Profits Must Provide Absolute Transparency," says Goozh

Every year in corporations large and small across America, millions of employees are choosing to dedicate a portion of their salaries to charity as part of an overall company-sponsored effort.

But whether donations arrive at the intended destination, how long they take to get there, and how much is deducted along the way are often a mystery.

"It shouldn't be," according to Adam Goozh, Founder and CEO of CreateHope, a leading provider of corporate giving services to many of the nation's top companies.

"CreateHope's technology provides an open window on every stage of the giving cycle for corporations, employees and recipient charities," says Goozh. "This high level of absolute transparency, combined with the best available financial safeguards and processes such as those we deliver to our clients should be adopted by all providers as the national standard."

There are six fundamental rules for safeguarding funds that corporations have a right to expect from providers:

1. Absolute Transparency -For corporations, this means never

losing control of what you can see or touch with access to all

records at any time, in real-time. For employees, it means

having the ability to monitor the status of donated funds in

real-time, with a date-stamped record of when funds were

pledged, deducted from payroll, received by the provider,

dispersed, and cashed by the charity. For recipient charities,

it means having similar real-time access to date-stamped

records relating specifically to their organization. The

transaction-related costs of each donation should also be

transparent to the employee and recipient charity if the

employer does not underwrite them.

2. Trust Account - Corporations should have a separate trust

account, segregated from the provider's other corporate

clients, and from the provider's operating accounts. Within

the corporate trust account, the provider should maintain

sub-accounts for each type of transaction whether it's payroll

deduction, cash, credit card, securities, etc. This makes it

easier to trace payments, ensure that the proper corporation

and employees receive credit for the donations, reconcile the

expenses associated with the various transaction types, and

ensure that each donation reaches the designated charity in

full. Reconciliation of the account should occur on a daily

basis.

3. Control -Corporations should maintain control over the trust

account with the right to freeze the funds at any time. The

bank where the account resides should be instructed to report

any irregularities.

4. Reporting - Prior to dispersing funds, the provider should

furnish a final distribution report to the corporation for

approval. The report should provide dollar-for-dollar

reconciliation of funds pledged, versus funds actually

received and held within the account. This eliminates

'shrinkage' - where actual donations are diluted to cover

unfulfilled pledges. No funds are dispersed without the

corporation's full knowledge and approval.

5. Timely Distribution - Once the final distribution report is

approved, dispersal to recipient charities should take place

immediately. Errors are more likely to occur when funds are

held longer than necessary.

6. Right to Audit - Insist on having the contractual right to

audit the provider at any time.

Corporations are in the driver's seat. They have choices when it comes to managing workplace giving programs and should be comfortable with the provider they choose.

"Whether it's with technology or other means, providers need to remain conscious of the fact that there are choices in the marketplace, and shape their business practices accordingly," says Goozh. "Charities depend on it, corporations and employees deserve it, and the boards that govern providers have a fiduciary responsibility to ensure it."

About CreateHope, Inc.

CreateHope's software and services provide corporations with the ability to efficiently administer employee giving, matching, volunteering, disaster relief and grant programs. CreateHope's Giving Station(TM) allows corporations to scale programs enterprise-wide, both domestically and globally. Streamlined processes and advanced technology also reduce costs and improve program results. The Giving Station offers unparalleled fiscal transparency. Convenient and easy-to-use, the solution allows corporations to monitor all facets of their programs with an advanced suite of reporting and administrative tools. The net result for corporations is a more valued corporate giving program for all stakeholders. For more information on the CreateHope and its products: http://www.createhope.com or call 301/951-5835.