LIHU‘E — When it comes to donating money, people want to be ensured they are spending their hard-earned dollars wisely, especially in such a tight economy, Kaua‘i Foodbank Executive Director Judy Lenthall said. This is exactly why the nonprofit recently
LIHU‘E — When it comes to donating money, people want to be ensured they are spending their hard-earned dollars wisely, especially in such a tight economy, Kaua‘i Foodbank Executive Director Judy Lenthall said.
This is exactly why the nonprofit recently chose to complete the lengthy process of becoming accredited with the Better Business Bureau. There are now three nonprofits — out of roughly 160 on island — that have taken this extra step toward earning consumer confidence. The Kaua‘i Humane Society and Hale ‘Opio Kaua‘i are the other two agencies that have done so.
“We wanted to let our donors know that our food bank is committed to the highest standards,” Lenthall said, adding that they have now completed a Feeding America requirement and are the only food bank in the state to claim BBB accreditation.
The process of meeting all of the BBB’s “Charity Standards” is “quite rigorous,” said Kaua‘i Humane Society Executive Director Dr. Becky Rhoades, whose animal welfare organization was approved last year.
“We want our supporters to know we work hard to achieve excellence and that every dollar raised for the KHS is used responsibly towards our work achieving our mission here on Kaua‘i,” she said.
For a charity to become accountable with the BBB, 22 requirements must be met, including disclosing the percentage of locally raised donations which remain in Hawai‘i, spending at least 65 percent of its expenses on program activities, having financial records available with expenses broken down such as travel, salaries and even postage, as well as disclosing income from the sale of products or services, according to the BBB.
This allows donors to easily view what the organization is spending and if the organization’s assets are related to expenditures, said Russell Subiono, the BBB of Hawai‘i charity review administrator and public outreach coordinator.
The BBB is the consumer’s “watchdog,” and people have come to trust them, said Hale ‘Opio Kaua‘i Executive Director Mary Navarro, whose organization originally registered with the BBB in 2001 and is one of the three nonprofits on island to have met all charity standards.
“This past year, the BBB created a special category for charities in an attempt to more clearly define and lend more credence to it being a charity versus a business,” she said. “Donors like to know if their money will be used in a responsible way.”
Though there is a cost to be a part of the program, it is minimal compared to the confidence gained by donors when they find the organization to be in reputable standards with the BBB, Navarro said. Yearly cost varies according to each nonprofit’s “budget amount.”
There are “many nonprofits” on Kaua‘i, including some 50 or 60 which have revenues over $100,000 per year, according to President and CEO of Kaua‘i Planning & Action Alliance Diane Zachary. A total of around 160 nonprofits exist on island, “both small and large.”
Some 20 charitable organizations on O‘ahu are currently accredited with the BBB and one on The Big Island, according to Subiono.
For more information visit www.bbb.org/us/charity.
