The acts of September 11th touched all Americans in an unprecedented way and continue to present new and unexpected challenges. Yet, one of the most remarkable consequences of these events was not in itself surprising -the outpouring of contributions to help victims of the disaster. Overwhelmingly, Americans stepped up to the plate, giving freely and in good faith. Knowledgeable estimates place the gifts at one billion dollars and growing. Now, the challenge rests squarely with the charitable sector to be equally forthcoming regarding the use of these donations.

The stakes are high. How recipient organizations spend these funds, their success in addressing both immediate and longer term needs, and perhaps most of all, their willingness to make prompt public disclosure of their activities, will strongly impact future charitable giving. Donors want to support charities but this desire is coupled with high expectations for charity accountability. A survey of 2,000 Americans commissioned by our organization in spring of this year, found that people are often frustrated by their difficulty in obtaining information from charities. Only half of those surveyed said that charities provide enough information about their activities. Given the magnitude of giving to September 11th relief efforts, the importance of charity disclosure cannot be overstated.

The survey findings shed light on other important donor concerns. First and foremost, donors want to know how much of the charity's spending goes toward charitable programs, as opposed to fundraising or administrative costs. Donors want charity promotions to clearly and specifically describe what the organization is and what it does. Donors also cite the importance of a publicly available annual report that includes information on the activities and finances of the organization.

How the charities address these and other concerns will go a long way towards encouraging future giving not only to disaster relief efforts, but to every other charity. Inevitably, large and small organizations, unrelated to the September 11th relief effort will be affected by the outcome of this accountability challenge.

The concept of "transparency" is increasingly raised within the philanthropic community. At its most basic, transparency means operating with a commitment to openness so complete that the donor, beneficiary or any other interested party can assess the work of an organization without organizational impediments that obscure a meaningful view. Transparency does not happen accidentally; it arises from the decision to be fully accountable.

Organizations involved in these 9-11 relief efforts -the new charities, as well as the long-established ones-need to commit to full accountability. The long-term needs of beneficiaries, donors and the charitable community will not be met unless these organizations build disclosure and accountability measures into all aspects of their operations. We encourage their Board members, leaders and staff to take action today.

• Ratchet up communications. Use the organization's website, newsletters and other informational vehicles to report on victim assistance activities that are currently taking place, as well as future efforts and projected delivery time lines. Outline ongoing program expenditures for these efforts and update these reports on a regular basis.

• Create an easily accessible means for potential beneficiaries to request help from your organization, and respond to each request in a timely fashion.

• Share information collaboratively with other relief organizations to help avoid duplication of effort and to identify unmet needs.

• Plan for a full accounting of all relief funds raised and all resulting expenditures by year's end, no matter what the size for the organization.

• Provide clear descriptions of programs and services in all future fund raising appeals so that donors will know the specific ways that their gifts will provide assistance. By now, details of relief program activities should be in place.

• Maintain strong internal controls on income and expenses. Such controls are more important than ever in times of unusually high income and significant expenses.

• Have a board-approved plan for how contributions will be spent and a projected time line for these expenditures. Revisit this plan as needs evolve. Given the scale of both the disaster and the funds solicited, expectations for timely action are high.

• In cases where solicitors collected contributions to distribute to other organizations directly providing relief assistance, it is important to establish control over these funds until they are passed on to the ultimate beneficiary and to ensure that collected funds reach the organizations promptly.

The enormous expression of support following the September 11th tragedies constitutes a milestone in the public's trust. There will be much to report, and it is hoped that every charity will have many positive stories to tell. And, let's hope that underlying every report will be the knowledge that the charity fulfilled its obligation to donors and beneficiaries and met its commitment to full accountability. Donors have demonstrated their faith in our sector. Let's show them unequivocally that their confidence was justified.

H. Art Taylor
President and CEO
BBB Wise Giving Alliance