Organizations That Meet BBB Charity Standards Tend to Raise More Funding, Study Finds

Nonprofit organizations that fully meet the BBB Wise Giving Alliance Standards for Charity Accountability typically achieve higher fundraising revenue than those that do not, a new report funded by the alliance and the Education and Research Foundation of BBB of Metropolitan New York finds.

Based on data from charity reviews conducted by BBB WGA and BBB Metro New York, the report, Does Meeting BBB Accountability Standards Affect Charitable Giving? (31 pages, PDF), confirmed findings from a 2009 study which determined that "[m]eeting BBB standards is associated with higher levels of public support" as measured by fundraising revenue. Indeed, in a sample of New York metropolitan-area charities, the study found that meeting all twenty BBB charity standards — which provide guidance in such areas as governance and oversight, financial management, and organizational effectiveness — was associated with a 13.5 percent increase in fundraising revenue.

The report notes that charities meeting all BBB charity standards are permitted to use the BBB Seal in addition to the BBB Accredited Charity Seal in their fundraising material. The study also found that large organizational size and higher fundraising expenses are significantly positively related to fundraising revenue.

"This fresh evidence is an important confirmation that both nationally and locally soliciting charities demonstrate greater success with their fundraising efforts when they meet all BBB Standards for Charity Accountability," said Claire Rosenzweig, president and CEO of both BBB Metro New York and the NY BBB Education and Research Foundation.

"Meeting BBB Charity Standards Associated With Greater Fundraising Results." Better Business Bureau Press Release 09/16/2013.