Better Business Bureau serving Louisville, Southern Indiana, and Western KY844 South 4th Street, Louisville, KY 40203Phone: (502) 583-6546 Toll Free: (800) 388-2222www.bbb.org/louisville

2014 Annual Report

Better Business Bureau2014 Annual Report

Our Vision:An ethical marketplace where buyers and sellers can trust each other.

Our Mission:BBB’s mission is to be the leader in advancing marketplace trust by creating a community of trustworthy businesses, setting standards, encouraging best practices, celebrating marketplace role models, and denouncing substandard marketplace behavior.

Standards for Trust:1. Build Trust2. Advertise Honestly3. Tell the Truth4. Be Transparent5. Honor Promises6. Be Responsive7. Safeguard Privacy8. Embody Integrity

2013 – 2014 Board of DirectorsMembers of the Board:Michael W. Anderson, President, Anderson Business Group; Nancy Atkins, Director of Sales and Marketing, Bluegrass Family Health; Sharon Y. Board, CEO, Chemco Federal Credit Union; Kevin Connelly, Executive Director, Center for Non-Profit Excellence; Nick Dorsey, President, Champion Window Co. of Louisville; Saul Garcia, President, Los Aztecas Mexican Restaurant; Jan Gordon, Executive Director, Spencerian College; Ann Gregory, Partner & Owner, The Door Store and Windows; Laverne Heck, President, Laverne Heck Realtor; Greg L. Hoover, President & CEO, A. Arnold World Class Relocation; Sharon Kerrick, PhD, Assistant Professor, U of L College of Business; Bill Lamb, President/General Manager, WDRB-TV/WMYO-TV; David Lewis, Owner, Bales Auto Mall; Pam Gibson Longwell, President & CEO, Feeders Supply Company, Inc.; Michael McClain, Owner/Partner, Ballinger McClain PLLC; David Nash, Chairman, Duplicator Sales and Service, Inc.; Linda Owen, Officer & Owner, Highlands Family-Owned Funeral Home, Inc.; Maria Smith, CEO, Harbor House of Louisville;

Officers/Executive Committee: Chairman: Patrick Sterling, Senior Director, Risk and People Administration, Texas RoadhouseChair-Elect: Greg Heitzman, Executive Director, Louisville/Jefferson County Metropolitan Sewer DistrictVice Chairman/Business & Consumer Affairs: Scooter McCray, Principal, La-Z-Boy Furniture GalleriesVice Chairman/Membership & Marketing: Vern Eswine, President, The Marketing CompanyVice-Chairman/Budget, Finance, Audit & Personnel/Treasurer: Jeff Lilly, VP/Finance & Operations, Kosair Children’s HospitalChairman/Bowling Green Area Business Advisory Committee: Thomas Smith, President & CEO, American Bank & Trust Company, Inc.Chairman/Elizabethtown & Lincoln Trail Area Business Advisory Committee: Steve Wright, Managing Member, The Wright Legacy Group, LLCSecretary: Raymond G. Strothman, President & Managing Partner, Strothman & Company, PSCPresident/CEO: Charles B. Mattingly, BBBImmediate Past Chair: Mike Anderson, VP of Corporate Finance/Treasurer, Churchill Downs, Inc.

A Note from the President

It is with great pleasure that I present you with the 2014 BBB Annual Report, which provides a snapshot of your BBB for the past year.

Accredited Businesses benefit from consumer trust of our brand and from BBB’s ongoing efforts toward an ethical marketplace. Their commitment to the Standards for Trust is evident by their commitment to BBB. At the end of 2014, we had 3,923 Accredited Businesses. These Accredited Businesses are the backbone of BBB and we have a dedicated team focused on meeting their needs.

In 2014, BBB delivered 7% more Business Reviews to consumers and 211% more Accredited Business directory lists than the previous year.

BBB’s local website continues to be strong, and the emphasis we placed on communicating with consumers and businesses through social media resulted in a major growth in our followers on Facebook, Twitter, LinkedIn, and YouTube.

Overall, growth continues, and retention is strong, as we continue to advocate in the marketplace. On behalf of BBB, I thank you for your continued support, and want you to know BBB is committed to serving businesses and consumers in our area.

Service Area

BBB serves 8 counties in Southern Indiana, and 44 counties in Kentucky, for a total of 52 counties served.

Website Visits

0 500,000 1,000,000 1,500,000

2009

2010

2011

2012

2013

2014

2009 2010 2011 2012 2013 2014

Visits 386,490 518,134 596,265 810,566 1,023,348 828,287

Top Ten Inquiries

1. Roofing Contractors2. Heating & Air Conditioning3. Auto Dealers – Used Cars4. Insurance Subrogation Srvcs5. Plumbing Contractors6. Auto Dealers – New 7. Auto Repair & Service8. Construction & Remodeling 9. Contractors - General10. Home Builders

357

352

220196

184

154

127

98

90

86

Top Ten TOB Complaints

Appliances - Major - Wholesale &ManufacturersHospitalization, Medical & SurgicalPlansAuto Dealers - New

Cable TV, Internet, & TelephoneInstallationAuto Dealers - Used

Internet Shopping Services

Restaurants

Gas-Propane-Equipment & Supplies

Apartments

Furniture - Retail

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2009 2010 2011 2012 2013 2014

Complaints 8,897 8,641 8,221 6,066 5,777 5,525

Total Complaints Opened

A total of 1,410 Customer Reviews were submitted and approved in 2014.

20,913

12,124

1,652

Customer Reviews

Positive

Customer

Review

Pages Read

Negative

Customer

Review

Pages Read

Neutral

Customer

Review

Pages Read

In 2014, BBB delivered 982,552 Business Reviews on the web(a 7% increase over 2013) and 331,157 Accredited Business Directory lists (a 211% increase).

Helping consumers find businesses, brands, and charities

they can TRUST.

Request-a-Quote Requests: 2,178

2014 BBB Statistics

Investigations Closed: 58Ad Review Cases Closed: 42

2014 BBB Statistics

Total Accredited Businesses: 3,923

New Accredited Businesses: 557

Accredited Business Applications Denied:

9

Accredited Business Revocations: 4

Creating a community of businesses you can TRUST!

Accreditation Department

3,0003,1003,2003,3003,4003,5003,6003,7003,8003,9004,000

2008 2009 2010 2011 2012 2013 2014

Number of Accredited

Businesses3,330 3,379 3,462 3,702 3,824 3,817 3,923

Top Scams of 2014

Arrest ScamTech Support Scam“Are you Calling Yourself” ScamCopycat Website ScamMedical Alert ScamEmergency ScamGovernment Grant ScamRobocall ScamClick Bait ScamSweepstakes Scam

Social Media Statistics

2014 Followers: 1,4012013 Followers: 1,070 2012 Followers: 653

2014 Page Likes: 1,2152013 Page Likes: 8462012 Page Likes: 601

2014 Company Page Likes: 1812013 Company Page Likes: 78

2014 Views: 3,5692013 Views: 285

2014 BBB VisibilityMedia Mentions:

2013: 5832014: 818 BBB Shred Event:

Thousands of pounds of documents shredded

BBB Wise Buying Guides Distributed:

90,000

Benefits of BBB Accreditation

1. BBB Business Review – Enhance with your logo, photos, videos, and other information2. BBB Supplied Web Page3. BBB Accredited Business Online Seal on your website4. Use of BBB Accredited Business Logo5. BBB QR Code6. Request-a-Quote Program7. Discount Coupon Program8. Accredited Business Login Page9. Search Engine Optimization to drive consumers to Accredited Businesses10.Dispute Resolution – BBB can help your business resolve disputes fairly and without

expensive litigation through its conciliation, mediation, and arbitration services11.BBB Advertising Review to help with your advertising12.BBB Newsletter and Business Alerts

Accredited BusinessAdvertising

Contact Paul Blakeley for more information on Marketing your BBB Accreditation. Call 502-588-0051 or email pblakeley@Louisville.bbb.org.

BBB, Inc. and Consumer Education Fund Consolidated Statements of Assets, Liabilities, and Net Assets – Modified Cash Basis for year-ended December 31, 2014

BBB, Inc. and Consumer Education Fund

Continued

Expenses:

Program services $1,840,227

Management and general $154,486

Fundraising $16,449

Total $2,011,162

Increase in Unrestricted Net Assets $69,876

Net Assets, beginning of year $885,418

Net Assets, end of year $955,294

Consolidated Statements of Assets, Liabilities, and Net Assets – Modified Cash Basis for year-ended December 31, 2014

Unrestricted Net Assets

Revenues, Gains, and other support:

Membership dues $1,656,974

Service income $308,146

Contributions $11,096

Torch Awards Income $18,568

Golf Scramble net $29,586

Enrollment fees $16,452

Other income $27,017

Unrealized gain on investments $805

Investment income $12,394

Total: $2,081,038

BBB Consumer Education Fund

The BBB Consumer Education Foundation (CEF) is a 501(c)(3) non-profit organization that was established in 1974 to further the charitable and educational purposes of the BBB serving Louisville, Southern Indiana, and Western KY. CEF’s major areas of focus include educating consumers on marketplace issues and working with local charitable organizations to promote standards for charitable accountability.

BBB Consumer Education Fund

Mission:The foundation’s mission is to provide educational programs and services that advance CEF’s charitable purpose and support the BBB in its efforts to educate and inform consumers and to encourage charity accountability and wise giving practices.

Officers for 2014 – 2015(CEF is governed by a board appointed by BBB)Chairperson: Patrick Sterling, Senior Director, Risk and People Administration, Texas RoadhouseChair-Elect: Greg Heitzman, Executive Director, Louisville/Jefferson County Metropolitan Sewer District Treasurer: Jeff Lilly, VP/Finance & Operations, Kosair Children’s HospitalSecretary: Raymond G. Strothman, President & Managing Partner, Strothman & Company, PSCPresident/CEO: Charles B. Mattingly, Better Business Bureau

Board Members: Vern Eswine, President, The Marketing Company; Scooter McCray, Principal, La-Z-Boy Furniture Galleries; Thomas Smith, President & CEO, American Bank & Trust Company, Inc.; Steve Wright, Owner, Wright Legacy Group; Mike Anderson, VP of Corporate Finance/Treasurer, Churchill Downs, Inc.

2014 CEF Highlights

2013 Total Charity Review Seals: 70

2012 Total Charity Review Seals: 65

Developed and posted more than 200 charity review reports

Delivered more than 50,000online reports in response to consumer inquiries

Continued collaborative partnerships with Metro United Way, Community Health Charities, and Kosair Charities.

CEF ProgramsSenior Citizen Solutions and Scams - To protect elderly consumers, CEF has developed presentations and written literature to provide elderly consumers with information on recognizing and preventing fraud. Identity Theft Seminars - To assist in educating consumers on identity theft, CEF has developed presentations on the topic of ID theft, including how to prevent it and what steps consumers can take should they become a victim. Elder Contract Review – Through a partnership with the University of Louisville School of Law, senior citizens can obtain advice on contract issues from U of L law students.Credit Clues – CEF developed information to help provide the most reliable and current information to consumers about the correct avenues to take, as well as those to avoid, when attempting to use, build, and most importantly, repair credit.Expos and Trade Shows – In order to interact with consumers and businesses seeking information or services, CEF develops and distributes marketing, promotional, and educational materials at local expos, trade shows, and other community gatherings to increase awareness of BBB services and to educate consumers on a variety of topics affecting the marketplace. Stop Shoplifting – This program is a joint initiative of the BBB and the Jefferson County Attorney’s Office. The program is an opportunity for first time shoplifting offenders to learn about shoplifting and its impact on their lives. The purpose of the class is to prevent future shoplifting. Golf Scramble – The BBB Golf Scramble is CEF’s biggest fundraiser of the year. The event, which includes team sponsorships, hole sponsors, and a silent auction, raises money for the BBB Storefront at Junior Achievement BizTown and other CEF programs and activities.BBB Storefront in Junior Achievement’s BizTown – BBB has a storefront in JA Biztown, a simulated town made up of 16 storefronts, sponsored by local businesses. Students experience the free enterprise system by working in these simulated businesses. With a variety of hands-on activities, students realize the correlation between what they learn in school and their participation in a simulated economy.

Charity ReviewEstablished in 2002, BBB Charity Review Service (CRS) is the donor information service of the local BBB. Its purpose is to promote public confidence in local charities and to encourage charitable giving. This is accomplished by providing the public with BBB charity reports on publicly soliciting charities. In addition to charity reports, BBB provides the public with information on wise giving practices and advises charities on how to develop and maintain high ethical standards of operations.

Charity Reviews are prompted by consumer inquiries and also by charities interested in demonstrating adherence to the best practices in their programs and operations. Participating charities submit charity review questionnaires and supporting documentation, including financial statements, tax filings, annual reports, and solicitation materials to BBB. Based on this information, BBB determines if a charity meets BBB Standards for Charity Accountability. BBB then issues a report with its determination, relative to compliance, with BBB Standards. BBB charity reports can be accessed on the BBB website at bbb.org/Louisville or by calling 502-583-6546. You may also request a copy of a report by sending a written request to: Charity Review Service, Better Business Bureau, 844 S. Fourth Street, Louisville, KY 40203.

BBB reports on publicly soliciting organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code andother organizations that are conducting charitable solicitations. BBB does not routinely apply its Standards for Charity Accountability to those organizations that do not receive a substantial portion of their revenues from public support.

Inquires requesting a charity report or charities interested in participating can initiate the process by contacting Joe Spalding, Director of Charity Review, at 502-588-0033 or by email at jspalding@Louisville.bbb.org. Additional information about charity review can be accessed on the BBB website at bbb.org/Louisville/charities-donors.

The charity review process that is implemented locally was developed by the BBB Wise Giving Alliance which is the charity reviewaffiliate of the national Council of Better Business Bureaus. The WGA reviews and reports on charities that conduct fundraising appeals in a number of states and that operate programs that are national in scope. Additional background on charity review and reports on nationally soliciting charities can be accessed on the WGA website at www.give.org or by contacting the BBB Wise Giving Alliance, 4200 Wilson Boulevard, Suite 800, Arlington, VA 22203 or by telephone at 703-276-0100.

Better Business Bureau serving Louisville, Southern Indiana, and Western KY844 South 4th Street, Louisville, KY 40203Phone: (502) 583-6546 Toll Free: (800) 388-2222www.bbb.org/louisville2014 Annual Report

Thank you for your support and leadership! It is crucial to BBB’s mission!