The PAS asks charitable organizations to complete a questionnaire and then “rates” the organization based on the following standards: A. Public Accountability 1. Provide on request an annual report that includes information about the soliciting organization's purposes, current activities, governance, finances and tax-exempt status. 2. Provide on request complete annual financial statements. 3. Present adequate information in financial statements to serve as a basis for informed decisions. 4. Provide on request an accounting of all income and fund raising costs of controlled or affiliated entities. B. Use of Funds 1. Spend a reasonable percentage of total income on programs and activities related to the organization's purposes. 2. Spend a reasonable percentage of public contributions on programs and activities described in solicitations, in accordance with donor expectations. 3. Spend a reasonable percentage of related contributions on fund raising. 4. Spend a reasonable percentage of total income on fund raising and administrative costs. 5. Substantiate upon request application of funds, in accordance with donor expectations, to the programs and activities described in solicitations. 6. Establish and exercise adequate controls over disbursements. C. Solicitations and Informational Materials 1. Ensure that solicitations and informational materials, distributed by any means, are accurate, truthful and not misleading, in whole and in part. 2. Substantiate on request that solicitations and informational materials, distributed by any means, are accurate, truthful and not misleading, in whole and in part. 3. Include in solicitations a clear description of the program and activities for which funds are requested. 4. Identify in direct contact solicitations a) the solicitor and his/her relationship to the benefiting organization, b) the benefiting organization or cause, and c) the programs and activities for which funds are requested. 5. Identify at the point of solicitations in conjunction with the sale of goods, or services or admissions a) the benefiting organization; b) a source from which written information is available; and c) the actual or anticipated portion of the sales or admission price to benefit the charitable organization or cause. D. Fund Raising Practices 1. Establish and exercise controls over fund raising activities conducted for the organization's benefit, including commitment to writing of all fund raising contracts and agreements. 2. Establish and exercise adequate controls over contributions. 3. Honor donor requests for confidentiality. 4. Conduct fund raising without excessive pressure. E. Governance 1. Have an adequate governing structure. 2. Have an active governing body that meets at least three times a year, with a majority of its members present on average. 3. Have an independent governing body whose compensated members constitute no more than 20% of the total voting membership. 4. Have an independent governing body whose members are not engaged in business transactions in which they have material conflicting interests. According to PAS, "Organizations include on this list (of organizations that are rated) are among those generating the greatest numbers of inquiries to the Council of Better Business Bureaus, whose Philanthropic Advisory Service maintains files on thousands of national and international soliciting organizations. This means that organizations which express controversial messages or who have powerful competitors often end up on the PAS rating list. It is not unusual for large organizations to attempt to generate negative complaints about their competitors to groups such as the PAS.