The Better Business Bureau (BBB) serving the Northwest and the Pacific has attested that Distance Teaching and Mobile Learning has met all 20 standards for charity accountability and has become a BBB accredited charity. BBB has put in place 20 standards which charities must meet in order to be accredited by the bureau. This is to ensure accountability and transparency.
On each of the standards, BBB has one of these three possible remarks: the standard is met, the standard is not met, or unable to verify. Thereafter, BBB then compiles these remarks against each standard into a report which it gives to the charity. The 20 standards are grouped into the following broad categories as contained below. Distance Teaching and Mobile Learning met all standards and received The Better Business Bureau (BBB) accreditation.
Governance and Oversight
Under this category, the standards include:
- Board oversight: To meet this standard, a charity needs to have a board of directors that exercise proper oversight over the charity’s activities and employees. This oversight includes routine assessment of the chief executive officer’s performance, controls over disbursement, policies regarding raising fund, and so on.
- Board size: The charity must have a board of directors which has at least five members who vote.
- Board meetings: There should be at least three equally spaced meetings in one year for the governing board with the physical participation of the majority members.
- Board compensation: Compensated members are not to serve as board treasurer or chairman, and they should not be more than one or 10% of such members with voting rights on the board.
- Conflict of interest: The charity should avoid transactions in which its board members have a conflict of interest.
- Effectiveness Policy: The charity should routinely assess its performance at least once in two years and determine its future direction in order to accomplish its mission.
- Effectiveness Report: The charity should submit its findings in the assessment of its performance to the governing body for appropriate action.
- Program Expenses: This should amount to a minimum of 65% of its overall expenditure.
- Fund Raising Expenses: Its fundraising should not take more than 35% of its funds achieved through fundraising.
- Accumulating Funds: No funds should be accumulated when they can be used for ongoing programs.
- Audit Report: The charity annual statements of finance should be made available to all who want to view them.
- Detailed Expense Breakdown: The charity financial report should contain the details of the expenditure in terms of each cost per item.
- Accurate Expense Reporting: The financial report should include an accurate report of the organization’s expenses.
- Budget Plan: The charity should have a budget plan approved by the board.
Fund Raising and Information Materials
- Accurate Materials: The charity materials for fundraising should be accurate and truthful.
- Annual Report: The charity should prepare a report every year about the organization’s mission statement, programs and so on.
- Website Disclosures: It should disclose the exact information in the annual reports on the websites where it is seeking funds.
- Donor Privacy: It should be able to satisfy the concerns raised by donors about privacy.
- Cause Marketing Disclosures: It should disclose clearly how it gains when certain services or products are sold.
- Complaints: It should be able to attend quickly to complaints it receives about its operations.