Limit campaign expenses to 35% in US standards proposal. (Non-Profit Sector).ARLINGTON, VA -- The BBB Wise Giving Alliance The BBB Wise Giving Alliance (WGA) is an alliance of charities formed by a merger of the National Charities Information Bureau and the Council of Better Business Bureaus' Foundation and its Philanthropic Advisory Service. proposes that a charity should spend at least 65 per cent of its total expenses on program activities and should not spend more than 35 per cent of "related contributions" from donations, legacies and other gifts, on fund raising activities. The Alliance is a group supported by a number of large corporations and big givers. The group recently published a list of voluntary standards for charities that are designed to help donors make "sound giving decisions" as well as to "foster confidence in charitable organizations This article is about charitable organizations. For other uses of the word charity, see Charity. A charitable organization (also known as a charity) is an organization with charitable purposes only. ." The standards were developed by consultation with both small and large charities, accountants, grant foundations, corporate contribution officers, regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. , research organizations and the Better Business Bureau system, They are based on the principle of full disclosure to donors at the time of solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual and beyond. The Alliance claims that these voluntary standards are more stringent than statutory requirements at the local, state and federal levels. Key among the recommendations is in the financial standards which are intended to ensure that charities spend their funds "honestly, prudently and in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with statements made in fund raising appeals." The Alliance urges charities to avoid accumulating funds that could be used for current programs by ensuring that their unrestricted net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. available for use "should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher." Other areas included in the voluntary standards recommendations on the governance of charities are: * ensuring that the board of directors consists of a minimum of five voting members * not more than one or 10 per cent--whichever is greater--of the board be comprised of directly or indirectly compensated persons, who are voting members. * compensated members shall not serve as the board's chair or treasurer. The standards also offer guidance on fundraising
adj. Showing or marked by proper respect. re·spect  ful·ly adv. ." The Alliance not only recommends ethical practices
that go beyond disclosure "to ensure public confidence and
encourage giving."
Read the full standards website: communityaction.ca |
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