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

2013 Annual Report

Better Business Bureau2013 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:Sharon Y. Board, CEO, Chemco Federal Credit Union; Randy Coe, President, Kosair Charities; Nick Dorsey, President, Champion Window Co. of Louisville; Vern Eswine, President, The Marketing Company; 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; Pam Gibson Longwell, President & CEO, Feeders Supply Company, Inc.; David Lewis, Owner, Bales Auto Mall; Michael McClain, Owner/Partner, Ballinger McClain PLLC; Scooter McCray, La-Z-Boy Furniture Galleries; 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; Sam Sorsa, Midwest Division Finance Manager, Brown-Forman; Raymond G. Strothman, CPA and Managing Partner, Strothman & Company, PSC.

Officers/Executive Committee: Chairman: Mike Anderson, VP of Corporate Finance/Treasurer, Churchill Downs, Inc.Chair-Elect: Patrick Sterling, Senior Director, Risk and People Administration, Texas RoadhouseVice Chairman/Business & Consumer Affairs: Vern Eswine, President, The Marketing CompanyVice Chairman/Membership & Marketing: Steve Ramser, President, Highland Roofing 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: Keith Johnson, Vice Chairman, First Federal Savings Bank Corporate Secretary: Greg Heitzman, Executive Director, Louisville/Jefferson County Metropolitan Sewer DistrictPresident/CEO: Charles B. Mattingly, BBBImmediate Past Chair: Gary Haupt, President, Tri-County Ford

A Note from the President

It is with great pleasure that I present you with the 2013 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 2013, we had 3,831 Accredited Businesses. These Accredited Businesses are the backbone of BBB and we have a dedicated team focused on meeting their needs.

In 2013, BBB delivered 7% more Business Reviews to consumers and 28% more Accredited Business directory lists than the previous year.

In 2013, visits to our local website grew from 810,566 to 1,023,348. Also, 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

Website Pageviews

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2009 2010 2011 2012 2013

Pageviews 1,404,467 1,715,288 1,875,972 2,103,855 2,001,689

Website Visits Via

Mobile Devices

2013 – 178,570

2012 – 142,045

2011 – 38,930

Top Ten Inquiries

1. Roofing Contractors2. Auto Dealers - Used3. Heating & Air Conditioning4. Plumbing Contractors5. Mortgages6. Construction & Remodeling 7. Auto Repair & Service8. Auto Dealers – New 9. Home Builders10. Contractors - General

A total of 2,845Customer Reviews were submitted in 2013. Of those, 1,943 were approved and reportable.

In 2013, BBB delivered 939,925 Business Reviews (a 7% increase over 2012) and 114,200Accredited Business Directory lists (a 28% increase).

Helping consumers find businesses, brands, and charities

they can TRUST.

Request-a-Quote Requests: 3,153

2013 BBB Statistics

Investigations Closed: 67Ad Review Cases Closed: 56

2013 BBB Statistics

Total Accredited Businesses: 3,831

New Accredited Businesses: 744

Accredited Business Applications Denied:

15

Accredited Business Revocations: 10

Creating a community of businesses you can TRUST!

Accreditation Department

Top Scams of 2013

Affordable Care Act ScamMedical Alert ScamAuction Reseller ScamArrest Warrant ScamInvisible Home ImprovementsCasting Call ScamForeign Currency ScamScam TextsDo Not Call ScamsFake Friend Scam

Social Media Statistics

2013 Twitter Followers: 1070 2012 Twitter Followers: 653

2013 Facebook Page Likes: 8462012 Facebook Page Likes: 601

2013 LinkedIn Company Page Likes: 78

2013 YouTube Views: 285

2013 BBB VisibilityMedia

Mentions: 583

BBB Shred Event: 14,000 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

BBB, Inc. and Consumer Education Fund Consolidated Statements of Assets, Liabilities, and Net Assets – Modified Cash Basis for year-ended December 31, 2013

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 CEF Finances For year ended December 31, 2013

Assets

Cash $41,350

Cash, scholarship fund $1,351

Property and equipment, net $329,537

Total Assets: $372,238

Liabilities and Net Assets

Current portion of long-term debt

$15,791

Payable to related party $84,953

Total current liabilities $100,744

Long-term debt $143,207

Total liabilities $243,951

For year ended December 31, 2013

Net Assets, Unrestricted

Undesignated $126,936

Board designated – scholarship fund

$1,351

Total net assets $128,287

Total liabilities and net assets $372,238

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 2013 – 2014 (CEF is governed by a board appointed by BBB)Chairperson: Mike Anderson, VP of Corporate Finance/Treasurer, Churchill Downs, Inc.Chair-Elect: Patrick Sterling, Senior Director, Risk and People Administration, Texas RoadhouseTreasurer: Jeff Lilly, VP/Finance & Operations, Kosair Children’s HospitalSecretary: Greg Heitzman, Executive Director, Louisville/Jefferson County Metropolitan Sewer DistrictPresident/CEO: Charles B. Mattingly, Better Business Bureau

Board Members: Vern Eswine, President, The Marketing Company; Steve Ramser, President, Highland Roofing Company; Thomas Smith, President & CEO, American Bank & Trust Company, Inc.; Keith Johnson, Vice Chairman, First Federal Savings Bank Corporate; Gary Haupt, President, Tri-County Ford

2013 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/louisville2013 Annual Report

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