Give with confidence on WyoGives Day

By Shelley Polansky, President/CEO 

Wyoming’s fourth annual statewide giving day will take place on July 12, 2023. The number of participating nonprofits, donors, and gifts have grown over the last three years, and according to WyoGives, more than $6 million has been raised for Wyoming nonprofits. The donations given on WyoGives Day – and every other day of the year – enable incredible organizations to deliver on their missions and make Wyoming a better place to live. 

Charitable giving is often emotional and highly personal. People want to support the causes that are near and dear to their hearts. But there’s a pragmatic side, too. People need to know that their donations will be used appropriately, that effective management and oversight are in place, and that the organization is making an impact.    

BBB Serving Northern Colorado and Wyoming offers resources to help people across Wyoming, eastern Colorado, and the Colorado mountains make informed giving decisions. Along with finding information on local and national charities, people visit bbb.org to get tips for donating to charities, to learn about potential scams, and to access other guidance on wise giving practices. 

Through the BBB Charity Report Program, 501(c)3 charities that solicit the public for funds in Northern Colorado and Wyoming are evaluated against BBB’s 20 Standards for Charity Accountability. Since launching our local Charity Accreditation program in 2014, we have accredited more than 100 nonprofits across the communities we serve. 

Our charitable standards establish a baseline set of best practices that span four key areas of interest to donors: governance and oversight, measuring effectiveness, financial management, and fundraising and information materials. To encourage giving and ensure public confidence, these standards recommend ethical practices that go well beyond full disclosure for donors and potential donors. 

Adherence to the BBB Standards for Charity Accountability is voluntary. By going above and beyond what is legally mandated by local, state, and federal laws, Accredited Charities are showing the public that they prioritize openness and ethical behavior in all their programs and activities. 

Governance and oversight

A charity’s board of directors has ultimate oversight authority for the organization. In other words, the buck stop with them. The governance and oversight section of the charitable standards seeks to ensure that the volunteer board is active, independent, and free of self-dealing. Board meetings should take place on a set cadence, whereby a majority of members attend in person. The board must be large enough to provide an adequate governing structure and actively carry out fundamental oversight responsibilities. Board members should be free of financial or conflicting interests, so they can make independent decisions that are in the best interest of the organization.  

Measuring effectiveness

A charity’s mission is the reason for its existence. Donors and potential donors want to know that the money they give will have an impact. Every charity should establish measurable goals and objectives and then evaluate its performance and effectiveness. By looking at past performance and defining future goals, charities can better determine the actions required to achieve their missions.  

Finances

While there is more to a nonprofit’s performance than its finances, scrutinizing expenses, budgets, and other financial reports can uncover poor financial management and questionable accounting practices. Our charitable standards establish minimum financial thresholds that can help ensure a charity is financially transparent and spends its funds according to its mission and donor expectations. 

Solicitations and informational materials

Just like for-profit companies, truth in advertising is critical. Charities should be forthcoming in their requests for monetary donations and in the informational materials, websites, and publications they produce. In this section of the standards, BBB seeks to ensure that a charity is making accurate, truthful, and respectful statements. Charities also have a responsibility to protect donor privacy and respect a donor’s desire to remain anonymous. 

No one is perfect – and the same goes for organizations. But how an organization handles a complaint says a lot about its commitment to ethics, honesty, and integrity. Charities should promptly respond and take appropriate action to any complaints received.  

The sign of an ethical charity

BBB Standards for Charity Accountability are not just a tool to help donors evaluate their giving decisions. Nonprofits that earn BBB Charity Accreditation validate to their supporters and constituents that they operate by a set of best practices that are of interest to donors. Accredited Charities can market their accreditation when applying for grants or asking the business community for corporate support. 

Everyone values organizations that do the right things for the right reasons. By looking for nonprofits that adhere to the BBB Standards for Charity Accountability, people can trust that they’re supporting the organizations that have the potential to leaving a positive and lasting impact on our communities. 

Shelley Polansky is president/CEO of BBB Serving Northern Colorado and Wyoming.