BBB charity reports extend well beyond a review of the charity’s finances and rely on information voluntarily provided by the charities themselves. A typical evaluation will examine:
Financial Details: Audited Financial Statements, IRS 990 and Schedule A, Annual Budget
Governance Documents: IRS Determination Letter, By-laws, Articles of Incorporation, Conflict-of-Interest Policies, Board Roster, Board Meeting Dates and Attendance, Fundraising Agreements
Fundraising and Informational Materials: Annual Report, Appeal Letters, Special Event Invitations, Telephone Scripts, Grant Proposals, Public Service Announcements
These materials are then carefully examined to determine whether or not the charity meets the BBB Standards for Charitable Accountability, which were implemented in March 2003. The BBB Wise Giving Alliance developed these standards in consultation with charities, accountants, fundraising professionals, grantmakers, and businesses.
After the review, the BBB provides each charity with a draft copy of its report before it becomes public. The BBB also offers each charity the opportunity to respond to any unmet standards and recommends specific changes that would enable the charity to meet standards in future evaluations.