Better Business Bureau Wise Giving Alliance
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| Better Business Bureau Wise Giving Alliance | |
|---|---|
| Name | Wise Giving Alliance |
| Formation | 1920s |
| Type | Nonprofit |
| Headquarters | Alexandria, Virginia |
| Parent organization | Better Business Bureau |
Better Business Bureau Wise Giving Alliance is a charitable oversight program administered by the parent organization Better Business Bureau that evaluates philanthropic organizations against standards for accountability and transparency. The Alliance publishes reports and charity standards intended to inform donors, charities, and oversight bodies like Federal Trade Commission, Charity Navigator, and GuideStar-related databases. Stakeholders such as Independent Sector, Council on Foundations, and academic centers including Columbia University and Stanford University researchers have cited its standards in discussions of nonprofit governance.
History
The program traces roots to early 20th-century consumer and philanthropic reform movements involving figures and institutions like Jane Addams, Russell Sage Foundation, and the Hague Conference on Private International Law era initiatives that emphasized public accountability. In mid-century developments, local Better Business Bureau offices began addressing fundraising practices alongside commercial concerns, intersecting with investigations led by entities such as the U.S. Senate Committee on Finance and reporting by outlets including The New York Times, The Washington Post, and CBS News. In the 1990s and 2000s the Alliance formalized set standards influenced by policy work at Harvard Kennedy School, comparisons with Independent Sector guidelines, and legal frameworks shaped by rulings of the United States Court of Appeals for the D.C. Circuit.
Mission and Standards
The Alliance states a mission to provide donor-focused evaluations that align with expectations voiced by organizations such as AARP, United Way Worldwide, and American Red Cross. Its standards cover areas referenced by regulatory and philanthropic institutions including Internal Revenue Service, Securities and Exchange Commission guidance on disclosure, and nonprofit governance principles discussed at Brookings Institution. The standards address board responsibilities, financial statements, fundraising cost disclosures, donor privacy policies, and stewardship practices, aligning in part with accreditation criteria used by Council on Accreditation and audit practices taught at London School of Economics nonprofit programs.
Evaluation Process
The Alliance's evaluation process uses documentation similar to audit work performed by firms like KPMG, Deloitte, and Ernst & Young when examining nonprofit financial controls. Outcomes depend on review of tax filings such as IRS Form 990, audited financial statements, and governance documents comparable to bylaws held by institutions like Smithsonian Institution and Metropolitan Museum of Art. The process also considers complaints recorded by consumer watchdogs exemplified by Consumer Reports and investigative findings from media outlets like ProPublica and The Wall Street Journal.
Ratings and Reports
The Alliance issues reports and statements that are cited alongside ratings from Charity Navigator, CharityWatch, and third-party databases such as GuideStar (now Candid). Its publicly posted evaluations inform philanthropic decisions by anchors like Philanthropy Roundtable, grantmakers affiliated with MacArthur Foundation, and donor-advised funds managed by organizations including Fidelity Charitable. Coverage and indexing by aggregators such as Google Scholar, LexisNexis, and ProQuest facilitate academic and legal research citing Alliance reports within case studies at Yale School of Management and University of Pennsylvania centers.
Criticisms and Controversies
The Alliance has faced critiques paralleling debates involving Charity Navigator and CharityWatch about methodology, transparency, and the weight given to administrative versus program expenditures—issues highlighted in commentary by The Chronicle of Philanthropy and critiques in op-eds run by The New York Times. Some charities and sector advocates such as National Council of Nonprofits and specialists from University of Chicago nonprofit studies have challenged specific determinations, raising questions about legal interpretations echoed in litigation before courts like the United States District Court for the Eastern District of Virginia. Debates have also involved comparisons to international oversight by entities like Charities Commission for England and Wales and regulatory reforms discussed at Organisation for Economic Co-operation and Development meetings.
Impact and Reception
The Alliance's standards and reports have influenced donor behavior, grantmaking policies at foundations such as Ford Foundation and Gates Foundation, and internal practices at nonprofits ranging from local community groups to national entities like Habitat for Humanity and Doctors Without Borders. Academic evaluations at institutions including Indiana University and University of Michigan have used Alliance data in studies of nonprofit transparency and fundraising efficacy. Reception among media outlets including NPR, PBS, and Reuters has been mixed, reflecting broader sector debates about metrics, accountability, and the evolving role of third-party evaluators in philanthropic ecosystems.