CHILDREN'S CHARITIES. 1974 TUESDAY, FEBRUARY 5, 1974 U.S. SENATE, SUBCOMMITTEE ON CHILDREN AND YOUTH, OF THE COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D.C. The subcommitte met at 9:35 a.m. in room 4232, Dirksen Senate Office Building, Hon. Walter F. Mondale (chairman of the subcommittee) presiding. Present: Senators Mondale and Hathaway. Committee staff members present: Ellen Hoffman and A. Sidney Johnson III, professional staff members, and Harvey Katz, consultant. Senator MONDALE. The Subcommittee on Children and Youth will come to order. Our first witness this morning is Helen L. O'Rourke, director, philanthropic advisory department of the Council of Better Business Bureaus. She is accompanied by Moylan E. Brown. STATEMENT OF HELEN L. O'ROURKE, DIRECTOR, PHILANTHROPIC ADVISORY DEPARTMENT, COUNCIL OF BETTER BUSINESS BUREAUS; ACCOMPANIED BY MOYLAN E. BROWN Mr. O'ROURKE. I am Helen L. O'Rourke, director of the philanthropic advisory department, Council of Better Business Bureaus, Inc. On behalf of the CBBB, permit me to say I appreciate the opportunity to participate in this hearing and assist you in your study of charitable organizations that benefit children. I'd like to commence with a brief description of our organization. The council is very much involved in the monitoring of soliciting organizations. The Council of Better Business Bureaus, Inc., came into being on August 1, 1970, as a result of the consolidation of the National Better Business Bureaus, Inc., and the Association of Better Business Bureaus International, Inc. The council combines the functions of its predecessors by: (1) Fostering fair advertising and selling practice in national advertising; (2) coordinating policies, standards, and practices for Better Business Bureaus; (3) providing a national voice for the Better Business Bureau system; and (4) advising the public they should give but, give wisely. The council is a nonprofit corporation supported by annual dues from its members. Its membership consists of 140 bureaus in the United States, and more than 1,000 national companies. The council is guided by a board of directors consisting of 36 members and up to 11 at-large members. Representing the Better Business Bureaus is the management committee, consisting of 12 bureau executives, whose functions are, in general, to provide expert advice on policies and operations. Recognizing the need for factual and readily available information, the philanthropic advisory department of the Council of Better Business Bureaus has developed a program to provide the public, Better Business Bureaus, chambers of commerce, corporations, media, and the Government-at all levels-with factual reports on national and international soliciting organizations. Included in these reports is information about the organization structure, activities, fundraising methods, financial statement, and tax status. Also, the philanthropic advisory department of the Council of Better Business Bureaus provides advisory and consulting services to soliciting organization regarding fundraising ethics, operations, and compliance with established standards. All of the services of the philanthropic advisory department of the Council of Better Business Bureaus are provided at no cost to the individual or organization requesting information, reports, or assistance. During 1973, the philanthropic advisory department of the Council of Better Business Bureaus responded to over 10,000 requests for reports on national and international soliciting organizations. In January 1973, the philanthropic advisory department of the Council of Better Business Bureaus received 600 telephone and mail inquiries. The month of December 1973, the number of inquiries jumped to over 2,500. Last week we received approximately 1,300 public inquiries. This does not count the corporate and media inquiries. I think this is a terrific jump. For your information, individuals, through direct gifts or charitable bequests, contributed 86.6 percent of the over $22 billion given in 1972 for philanthropic pro grams. The 140 better business bureaus are provided with the written reports developed by the Philanthropic Advisory Department of |