What does AAI's "Seal of Transparency" mean?

by Martin Boers

Anyone who has received an email from Atheist Alliance International (AAI) over the past few years may have noticed that their email footer looks something like this:

This article explains what the phrase "Platinum rated by Guidestar" actually means, and compares that with what Atheist Alliance International would like you to think it means.

GuideStar is a charity information-sharing website owned and run by Candid. Charities can "claim their Candid profile" and then earn a Bronze, Silver, Gold or Platinum "Seal of Transparency" by giving Candid various pieces of information about their organisation. Candid then makes this information available to fee-paying subscribers.

As indicated in their email footer, Atheist Alliance International has claimed their Candid profile, which you can see here:


That profile has been populated with information like AAI's "Strategic Plan" and their current list of directors. Since Candid charges subscribers for this information, Candid encourages charities to complete as many fields as possible in their profile by using a graduated system, called "Seals of Transparency". Charities can progress through the levels simply by adding more information to their Candid profile. The number of fields that have been completed in AAI's profile are enough for AAI to have earned a Platinum Seal of Transparency.

AAI are proudly promoting this "Seal of Transparency" as if it demonstrates something other than the ability to fill out fields in an online form. On the Transparency page of their website, AAI lists their Platinum Seal of Transparency as the number one item on their list of "facts that should help you decide ... [that] Atheist Alliance International places integrity as its first and non-negotiable value." Their Annual Accounts page (which does not include any financial information later than 2021) states that "AAI is Platinum rated by GuideStar for transparency", and that "GuideStar ... researches and vets charities".

Atheist Alliance International would like you to think that Candid is an independent organisation that objectively evaluates charities and rates them on their "transparency" before awarding them a "Seal of Transparency". This is not true. Here are the facts about Candid's "Seal of Transparency" program:
  • In the words of Candid themselves: "A Seal is not a rating. Instead, it indicates the type and amount of information your nonprofit has shared." This has been emphasised multiple times by Candid and others. For example, in the comments under a 2021 article, Kristin Boe (Brand Awareness Manager at Candid) stated that "a Candid Seal of Transparency ... is not a rating or an endorsement."

  • A truly independent charity watchdog called Charity Watch has written an article describing how some charities that have a Platinum Seal of Transparency from Candid actually earned an F (the lowest rating) when their own objective evaluation criteria are applied. The article states the following:
"In practice, organizations like Candid and Charity Navigator function more like nonprofit trade associations that exist primarily to help charities amplify their marketing and fundraising efforts, not independent charity raters. Insofar as such organizations help to support and promote efficient and responsible charities, this can be a good thing. It’s not such a good thing when highly inefficient or irresponsible charities exploit these seals and ratings to gain credibility with donors that may not be deserved."
The California State government has recently recognised shortcomings in the transparency of charities like AAI who are registered in their state, and have introduced Assembly Bill 488, which "requires that ... online fundraising platforms [like Paypal] and the charities they host on their sites be subject to registration and reporting obligations, meaningful and transparent consumer disclosures, and banking and accounting rules."

Candid have written an easy-to-understand article about AB 488 in which they explain:
"AB 488 requires charitable fundraising platforms to only solicit for nonprofits that are in “good standing” with the California Attorney General’s Office, the California Franchise Tax Board, and the Internal Revenue Service (IRS). This means a nonprofit must be current, registered, and not delinquent in its registration status with these three agencies.  

If your nonprofit is not in “good standing” with even one of these agencies, you may be prohibited from soliciting donations in California on an online platform."
As has been highlighted in recent articles, Atheist Alliance International is currently Suspended (i.e. not in good standing) with the California Franchise Tax Board, and they will remain so until they pay tens of thousands of dollars in unpaid taxes, interest and penalties dating back to 2016.

Here are a few facts about Atheist Alliance International that they are trying to hide behind their "Seal of Transparency":
  • Atheist Alliance International is lying in their email footer and on their website when they claim that AAI is "Platinum rated by Guidestar". As Candid themselves say, the Seal is not a rating.

  • Atheist Alliance International has not been doing business legally since 2021, when they were suspended by the California Franchise Tax Board and the California Secretary of State. 

  • Under the new California Assembly Bill 488, Atheist Alliance International will no longer be allowed to use Paypal, or any other online platform, to solicit donations.
In response to a question that I put to Candid, Kate (Digital Communications Manager) summarised AAI's situation succinctly:
"The Seals of Transparency program does not indicate compliance. So yes, an organization can have a seal and still be suspended by the CA AG [California Attorney General] or the FTB [Franchise Tax Board]."
The next time you see Atheist Alliance International boasting about their "transparency", don't take that at face value.

Comments

  1. John Hamill13 December 2023 at 13:27

    That AAI are being knowingly dishonest about their finances and fundraising is clearly demonstrated in this article. The question that this gives rise to, is why AAI feel the need to be deliberately deceptive on this topic?

    ReplyDelete
    Replies
    1. Martin13 December 2023 at 18:47

      Since "Atheist Alliance International places integrity as its first and non-negotiable value", then surely the new "President" of AAI will fix this problem. Or maybe that claim on AAI's "Transparency" page is also a lie.

      Delete

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