Better Business Bureau Report for
Project Philanthropy

Better Business Bureau Report issued May 2014
Better Business Bureau Report expires May 2016


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


Find out more about this charity:

Back To Top

Charity Contact Information

Name: Project Philanthropy
Address: 3701 Trakker Trail
Suite 2J
  Bozeman, MT 59718
Phone: 877-822-2873
Web Address: www.donateforacause.org
Also known as:Donate For a Cause
Back To Top

Better Business Bureau Comments

Year, State Incorporated: 2006, District of Columbia
Affiliates: None
Stated Purpose: To provide financial aid and support through contributions, grants, and other forms of financial assistance to organizations operated exclusively for religious, charitable, scientific, literary, or educational purposes and exempt from tax under Section 501(c)(3) of the IRS code.

Back To Top

Evaluation Conclusions

              

Project Philanthropy (dba, Donate for a Cause) does not meet the following 2 Standards for Charity Accountability.

Standard 2: Number of Board Members - Soliciting organizations shall have a board of directors with a minimum of five voting members.

According to the organization's IRS Form 990 for the year-ended December 31, 2012, it had three (3) voting members of the Board of Directors.  The organization confirmed this number of voting Board Members in an email dated October 28, 2013. 

Standard 15: Misleading Appeals - Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

As of August 20, 2014, Donate for a Cause's website, www.donateforacause.org, states that the organization, "accept[s] timeshares as a donation ..." (homepage).  However, on the "FAQ" section of its site (question 9, "What Are The Costs for Me To Donate My Timeshare?"), the organization adds that it "take[s] some timeshares free of charge [and ... ] offer[s] a fee-based guaranteed program" for other timeshares.  According to an email dated October 28, 2013, Donate for a Cause determines which timeshares qualify for its "free" program versus its "fee-based" program based on "the expected sale price of the timeshare[;] if it is expected to sell for more than the associated costs incurred by the charity for taking the property ... the timeshare is accepted for free.  Timeshares with lower expected sale prices are accepted if the donor is willing to make a donation to cover the associated costs."  In the same email, Donate for a Cause stated that in 2012, 225 of the 2,001 timeshares offered to the organization (or 11%) were accepted into its "free" program; the remaining 1,776 timeshares were accepted along with a "donation" paid by the donor.  

In BBB’s opinion, Donate for a Cause’s online solicitations are misleading in part, because they omit a material fact (i.e., 100% of “donated” timeshares are not accepted free-of-charge) that, if known by potential donors at the point of solicitation, is likely to have an impact on the donors’ decision whether to transfer their timeshare to the organization.

In addition, BBB requested, but did not receive, complete information on the organization’s governance and oversight and finances and is unable to verify the organization's compliance with the following 4 Standards for Charity Accountability: 1, 4, 5, and 11.
Project Philanthropy meets the remaining 14 Standards for Charity Accountability.
Back To Top

Programs

              

Donate for a Cause accepts the transfer of timeshares and sells them to raise money for local and national charities. According to the charity, the timeshares are deeded into the organization's name and the donor receives a tax deduction for their contribution. The proceeds from the sale of the timeshares are then distributed to local and national charities.

For the fiscal year-ended December 31, 2012, Donate for a Cause's program expenses were:

  
Program Service Expenses 409,322
Total Program Expenses: $409,322
Back To Top

Governance

              

Chief Executive : Ms. Virginia Babcock, President & CEO, Donate for a Cause
Compensation*: 
$46,078

Chair of the Board: unknown
Chair's Profession / Business Affiliation: unknown

Board Size: 3

Paid Staff Size: 2

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Back To Top

Fund Raising

              

Method(s) Used:

Internet
Fundraising costs were 10% of related contributions. (Related contributions, which totaled $803,453, are donations received as a result of fundraising activities.)
Back To Top

Tax Status

              

This charity is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
Back To Top

Financial

              

The following information is based on Donate for a Cause's IRS Form 990 for the fiscal year-ended December 31, 2012.

Source of Funds  
Contributions & Grants 7,108,519
Gross Rents 1,460
Loss on Sale of Inventory -6,305,066
Total Income $804,913


chart



Uses of Funds as a % of Total Expenses

Programs: 68%  Fund Raising: 13%  Administrative: 19% 

Total income $804,913
Program expenses $409,322
Fund raising expenses 79,891
Administrative expenses 118,153
Total expenses $607,366
Income in Excess of Expenses 197,547
Beginning net assets 118,347
Ending net assets 312,687
Total liabilities 2,836
Total assets $315,523


Back To Top

Complaints

              

Your BBB processed a total of 1 complaint about this organization in the last 36 months, our standard reporting period. Of the total 1 complaints closed in the last 36 months, 1 was closed in the last 12 months.

 

These complaints concerned:

1 regarding Delivery Issues

These complaints were closed as:

1 Resolved

 

 

Back To Top

An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

Send to:



What is an Accredited Charity