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Better Business Bureau ®
Start With Trust®
Wisconsin
Standard 1

A board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

Information Needed from Charity to Determine Compliance:

The charity indicates on the form provided by the Alliance whether its board of directors takes all the actions listed in the application section below.

Application of the Standard:

The Alliance looks for charity confirmation that its board of directors and/or a committee of the board carries out each of the following oversight activities:

  • formally reviews the performance of the chief executive officer at least once every two years,
  • formally approves the budget,
  • ensures that arrangements with outside fund raising firms are made in writing,
  • receives information (for example, a written summary) about the financial arrangements with such firms and, if applicable, the anticipated portion of the gross proceeds that goes to the charity,
  • has formally approved a conflict of interest policy and regularly monitors it to ensure adherence,
  • appoints a voting member of the board (e.g., treasurer, finance committee chair, or some similar title) to oversee the charity‚Äôs finances and report to the board,
  • ensures that no person holds the offices of both chair and treasurer at the same time,
  • receives, on an annual basis, each of the following applicable items:
    1. the charity's IRS Form 990
    2. the charity's audited financial statement
    3. auditor's management letter (if one is issued)
    4. if there is no audited statement, then the charity's unaudited financial statement

If any one of the foregoing activities is not carried out, the charity does not meet this standard.