What is it that distinguishes an “accredited” charity from others?
An Accredited Charity is one that has met 20 national standards that look at compliance with widely-accepted expectations of nonprofits regarding their governance, effectiveness measures, finances, and integrity of their publications—online and otherwise. These are standards established by the Wise Giving Alliance, a sister affiliate of the Better Business Bureau. A qualified professional (notably, not an algorithm) completes the evaluation.
Why haven’t I heard of this before now?
In 2022, the Better Business Bureau serving Shreveport and the surrounding region decided to join with many other BBBs across the nation that have been conducting Charity Review programs. In doing that, the BBB Board of Directors made a community service commitment to assess the hundreds of nonprofits within its geographical footprint according to the 20 standards. The expense of conducting reviews is borne completely by the BBB, which means there is no cost to individual 501(c)3 organizations. Importantly, the BBB has been conducting charity reviews for almost 100 years.
I know that the Better Business Bureau grades businesses. Is this like that?
Unlike businesses, there is no grade rendered by the assessment. Rather, a nonprofit either qualifies as accredited, or if not, is informed as to the precise standards that remain to be achieved in time for their next scheduled review.
How do I learn which charitable organizations are accredited?
Results of charity reviews are accessible at the Give.org website, as well as a publication that is produced three times annually, the Regional Wise Giving Guide.
When I give, should my first consideration go to nonprofits that are accredited?
At minimum, Accredited Charities should make your list of options. When you give to a nonprofit that is accredited, you can have great confidence that your contribution is merited. By “merited,” the implication is that an organization’s governance, their program effectiveness, their finances, and the integrity of their publications all matter to you, i.e., the generous person giving them consideration. A professional and scholar—one whose awareness and insight regarding the nonprofits of our region is especially extensive—has already examined that organization, and essentially has performed homework for you.
Think about it this way,. When you shop, how do you know when to feel good about trading your hard-earned money for a product or a service? And of course, your satisfaction with the product or service pivots on how much it exceeds, meets, or falls short of your expectations.
Charitable donations are different. We do not get to enjoy that degree of insight when it comes to your donations, though, do we? There is no first-hand feedback loop. There is no product or service personally received. And, typically, there is no specific expectation for any specific outcome.
How, then, can you reasonably conclude your contribution made a genuine difference for an effective charity and those whose lives it claims to attempt to improve? How can you legitimately hold trust that your generosity has not been wasted on a nonprofit organization that—whether intentionally (scam) or unintentionally (ineffectiveness)—fails to deliver on the promises it pledges?
Accreditation is a function of research by a well-regarded independent authority, and the output provides generous individuals quick and cogent insight into trustworthiness among nonprofits. National nonprofit organizations are assessed by professionals affiliated with the BBB’s sister organization located in Washington, DC, the Wise Giving Alliance. Area nonprofits, as discussed above, are assessed by the Charity Review Director affiliated with the BBB office located in Shreveport.
Should I avoid contributing to nonprofits that are not accredited?
That is not necessarily the case. Rather, when one gives to one that is not yet accredited, it’s highly recommended that you learn why it is not, and do whatever homework necessary to gain your confidence. As stated above, charity review in our area only began about two years ago. Accordingly, there absolutely can be valid reasons why a given organization has not yet achieved that distinction.
Greg Thompson | Charity Review Director, BBB Serving Northeast & Central Louisiana & The Ark-La-Tex