US watchdog agency loosens fundraising standards because of recession

The Better Business Bureau Wise Giving Alliance has decided to allow organisations more leeway in meeting its standards for how much they spend on fundraising and programme activities.

The agency normally requires charities that meet its 20 standards to spend no more than 35 per cent of contributions on fundraising expenses. For fiscal years ending in 2008 to June 2010, charities that spend up to 45 per cent on fundraising will still receive the Alliance’s stamp of approval as long as they comply with the other standards.

Figures from Giving USA show that donations in the US last year showed the biggest decline in 50 years, and further reports from the Foundation Center predict a fall of at least nine per cent in grants from foundations.

http://philanthropy.com/news/updates/index.php?id=10316
http://www.bbb.org/us/Charity-Standards/