BBB Standards & Effectiveness
BBB Standards & Effectiveness

BBB Standards about Charity Effectiveness Practices

Two of the BBB’s Standards state that charities should have a board level charity effectiveness policy committing the organization to conduct a self-assessment of its mission impact at least once every two years, and also to provide a written report to its board for approval, summarizing results and action recommendations. The BBB Standards relating to effectiveness are:

Standard 6:

Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

Information Needed from Charity to Determine Compliance:

The charity provides a copy of its board policy on performance and effectiveness assessments.

Application:

BBB confirms that a policy is in place and that such policy calls for an assessment at least every two years. The policy need not use the words "performance" and/or "effectiveness" but should make clear that the charity intends to formally evaluate its success and impact in fulfilling its mission, goals and objectives.

Standard 7:

Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

Information Needed from Charity to Determine Compliance:

The charity indicates to BBB whether its board receives and approves a written report of the assessment conducted, as described in Standard 6.

Application:

BBB seeks to confirm that an assessment has been carried out at least once every two years, and that a written report on the results has been reviewed and approved by the charity’s board of directors. For these purposes, a charity effectiveness report should take a big picture look at a charity’s progress against its long-term overall mission; it is not the same thing as a shorter-term strategic plan or operational report. This BBB Standard does not seek to evaluate the quality and content of the assessment. Therefore, BBB will not typically request a copy of the charity's assessment report.