Application of Charity Standards
The Greater Cleveland Better Business Bureau has developed the following guidelines for applying BBB Standards for Charity Accountability to local charities:
· Charity reviews will be prompted by one or more donor inquiries or complaints and may also be initiated by charity agency request.
· Charity Standards will be applied to publicly soliciting organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code and may also be applied to other organizations soliciting for a charitable purpose.
· Charity Standards will be applied to local affiliates of national organizations if the local affiliate:
a. prepares independent financial statements,
b. has a local board of directors and selects local leadership, and
c. approves and exercise control of a local budget.
· Charity Standards may be applied to agencies that request a review or apply for the seal.
· Charity Standards will not be routinely applied to private foundations that do not solicit the public for contributions.
· Charity Standards will not be routinely applied to governmental entities.
· Charity Standards will not be routinely applied to churches that solicit within their congregations.
· Charity Standards will not be routinely applied to schools and school groups such as Parent Teacher Associations or booster clubs for fundraising efforts associated with school athletics, field trips, bands, musical performances, etc.
· Charity Standards will not be routinely applied to Neighborhood and Home Ownership Associations that primarily solicit within their membership for purposes that primarily are for the benefit of their membership.
· Charity Standards will not be routinely applied to organizations with an annual income of under $25,000 unless requested by the charity or deemed warranted by and unusual pattern of inquiries or complaints.
· The Charity Review Service may provide informational reports, as appropriate, on charitable organizations not subject to charity review as a service to the donor community. These reports contain an organization’s basic contact information, along with information the organization supplies about its mission, programs, governance, finances, and fund raising.