Arlington, VA. August 30, 2000 - The Council of Better Business Bureaus' Foundation (which houses the Philanthropic Advisory Service), and the New York-based National Charities Information Bureau (NCIB) have signed a Letter of Intent to merge the two organizations. The governing bodies of both organizations believe that the public and nonprofit sector will be better served by a single entity combining the reach of both NCIB and the BBB's national Philanthropic Advisory Service (PAS). The two nonprofits are moving toward a binding agreement and implementation plan which, upon approval by the boards of the respective organizations, is anticipated to be completed in a few months. The final plan will need formal approval by the New York Supreme Court and the District of Columbia.
"For many years now, PAS and NCIB have performed similar charity watchdog and donor education roles, evaluated many of the same charities, and approached several of the same funders for financial support. With the merger, we'll be able to build on each other's strengths, recognize economies of scale, initiate new programs to meet the needs of today's donors and address emerging accountability issues that confront the charitable community," said Candace McIlhenny, executive director and CEO of the CBBB Foundation (CBBBF).
William P. Massey, former president of NCIB, noted, "Since 1918 NCIB has served the public by providing independent reviews of national charities from the donor's point of view. Additionally we have assisted countless journalists and government officials in locating and understanding useful information about the charitable sector."
"We are excited about the merger because of our respect for the work of PAS and because of our mutual commitment to the philanthropic public. Linking distinguishing elements of each trusted organization will expand our capacity to serve donors with meaningful information about a growing number of charities."
The merged entity, still to be named, will be based in Arlington, Virginia, where the CBBB Foundation is currently located. CBBBF is a 501(c)(3) organization that engages in consumer and donor education activities and operates the Philanthropic Advisory Service, which was established in 1971. A new name will be chosen by the merging organizations to reflect the charity and consumer mission of the expanded foundation.
NCIB and CBBBF will mutually agree on the new directors to serve on the board of the merged organization. New directors are expected to include several NCIB board members, nonprofit sector representatives and BBB system constituents.
"Our BBB system has always been proud of the important role played by our Philanthropic Advisory Service. Individual and business donors have long relied on PAS charity reports for information on whether nationally soliciting organizations meet our 23 charitable standards. We anticipate that with the added strengths of NCIB, the merged organization will be able to enhance charity review activities under the continued oversight of Bennett Weiner, director of PAS and CBBB vice president, as well as strengthen BBB charity review operations at the local level," said Ken Hunter, president of the Council of Better Business Bureaus, the umbrella organization for the nation's 132 BBBs.
According to George Penick, NCIB chairman of the board, "This merger ensures that the future of respected, independent evaluation of charities not only is secure, but will grow in response to market demand. The 82 years of intellectual capital acquired by NCIB will be preserved and skillfully blended with that of PAS through the assistance of NCIB vice president for research, Marge Heitbrink, who will work from a New York office. The Board of Directors of NCIB is fully committed to this merger because it will result in a single reliable, respected source to which donors and consumers can go for information about their charitable activities."
