Connecticut-based charities are performing with greater transparency and with greater attention to standards than the national average, a survey by the Better Business Bureau’s Wise Giving Alliance shows.
In July, the alliance completed its annual report that evaluated the transparency and standards of 1,200 nationally soliciting charities, (www.bbb.org/charity). Ten of the organizations evaluated were Connecticut-based and seven of them passed the test. Nationwide, more than 56 percent of the charities met the BBB giving standards; about 44 percent failed to meet the requirements.
Insufficient transparency, inadequate board activity and failure to determine the effectiveness of donations proved to be among the biggest reasons for nonprofits failing to meet compliance, according to the report.
“It is interesting to note that none of the most frequently identified problem areas involve financial ratio issues,’’ said Bennett Weiner, chief operating officer, BBB Wise Giving Alliance. “Although we also review a charity’s finances as part of our accountability analysis, fewer than 10 percent of the organizations that we evaluate are found to have a concern with the BBB standards that address how much they are spending on their programs vs.fund raising and administration.”
Historically, finances attract the lion share of public and media attention, Weiner said. However, the reality is that a full review of a charity’s accountability reveals that other problems are more likely to be found, he said.
The good news, says Weiner, is that most of the concerns that were identified in the report have solutions that could be implemented at low cost — such as posting information on a website or arranging for an additional board meeting.
In light of the severe economic impact on nonprofits, Weiner has also implemented some adjustments when evaluating an organization.
In essence, if a charity shows its being harmed by the economy, the alliance will allow up to a 10 percent variance in meeting its financial ratio tests — spending at least 65 percent of total expenses on program services and have total fund raising expenses not exceed 35 percent of total contributions. “This exception will be available for charity financial statements covering the 2009 and 2010 fiscal years,” he noted.
In Connecticut, the three charities with issues to address are Friends of Animals in Darien; Love 146 in New Haven and the National Organization for Rare Disorders in Danbury.
The alliance gave passing marks to the Association of Hole in the Wall Camps in New Haven; Service for Peace in Bridgeport; Save the Children Federation in Westport; Alliance for Cancer Gene Therapy and Americares Foundation, both in Stamford; and Multiple Myeloma Research Foundation and TechnoServe, both in Norwalk.
Environmental Grants Available
The Connecticut Society for Women Environmental Professionals is offering grants of up to $1,000 to support environmentally beneficial projects.
Through this annual program, community-based, non-profit and grassroots organizations are given the means to fund important environmental initiatives that make a positive difference in their communities. Recent winners were the Lebanon Regional Agricultural Science and Technology Center for a honey bee raising project.
The deadline for applications is Oct. 15. . Applications may also be downloaded from the SWEP-CT website at http://www.swep-ct.org/.
YWCA Receives Grant
YWCA Hartford Region recently received a $95,000 transitional operating support grant from the Hartford Foundation for Public Giving. The grant will support Time Out for Parents, a child abuse prevention program that provides a safe, nurturing environment for children and support to families at-risk of child abuse. Funds from the grant will be used for the costs of a case manager, two childcare staff and administrative overhead.
The TOP program operates in Hartford and Manchester. It offers case management and supportive services to help parents and caregivers manage their own challenges as they improve relationships with their children. Caregivers develop individual goals and action plans that reduce or eliminate instability in their lives, while experienced YWCA staff provide care for their children in its licensed centers. In 2009, TOP served 68 children and 59 parents.
YWCA received this grant after the state Department of Children and Families eliminated funding to therapeutic childcare programs like TOP. The program also is supported by United Way of the Northeastern and Central Connecticut and the Town of Manchester.
Anti-Bullying Video In Middletown
The Middletown Council of Business Partners, established when local business owners began working with the Middlesex County Community Foundation, is collaborating with the Community Foundation, the Middletown Public Schools and the Rushford Center to produce a 10-minute video called the “No Bully Zone.” It features the voices of local school students.
Joanna Smiley writes the weekly Nonprofit Notebook column. Reach her at jsmiley@HartfordBusiness.com
