BBB Institute for Marketplace Trust

ANNUALREPORT

2014

SMART INVESTING

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I am pleased to present the BBB Institute for Marketplace Trust’s Impact Report for 2014.

“Marketplace Impact” aptly refl ects BBB Institute for Marketplace Trust (BBB Institute) in 2014, as we delivered on our commitment to meet our mission by expanding our programs and embracing exciting new initiatives.

Our fl agship program of more than 10 years, BBB Military Line, paved the way for expanding into a broader-reaching “Military and Veterans Initiative.” As partners in the Department of Defense Financial Readiness Campaign, White House Joining Forces Initiative, and numerous other important service related ventures, 18 BBBs brought uniquely tailored fi nancial education to service members, veterans and their families across the country. Remaining committed to fi nancial education and harnessing the power of technology, we began work on an innovative peer-to-peer smart phone app designed to assist returning veterans with personal fi nancial management. We look forward to piloting our app in early 2015, and to launching it into the marketplace following the pilot phase. American Express Foundation has our great appreciation for entrusting this important effort to our BBB Institute team.

Letter from the BBB Institute Chairman

2014 BOARD OF DIRECTORS

CHAIRMAN

Ken Carroll Manager Customer Value SuccessFactors Inc.

Kip MorsePresidentBBB serving Central Ohio

David WeissPresidentBBB serving Greater Cleveland

Edwin Welch President I.L. Long Construction

Carol WilnerVice President, Public Aff airs AT&T Services, Inc.

EX-OFFICIO MEMBER

Rodney DavisPresidentBBB Institute for Marketplace Trust

Brenda LinningtonDirector, Military and Veterans InitiativeBBB Institute for Marketplace Trust

Partners and Contributors BBB Military and Veterans Initiative is sustained through support from:

FINRA Investor Education Foundation/SaveAndInvest.org

Capital One Bank

Defense Credit Union Council (DCUC)

McGraw Hill Financial

With Contributions from: Bank of America (BoA)

Assn. of Military Banks of America (AMBA)

USAA Foundation

Military Saves

BBB Institute is supported through grants from:Target, Inc.

American Express Foundation

Google

2014 Annual Report | 12014 Annual Report | 1

Ken Carroll

We continue to grow in the areas of outreach and engagement. Our consumer education program, BBB Smart Investing, performed well in 2014. The goal of the program is to arm people with the necessary tools and resources to make informed investing decisions and avoid scams. Thanks to our partner, FINRA Investor Education Foundation, 59 BBBs shared valuable consumer information aligned with FINRA’s “Outsmarting Investment Fraud” program.

The California Advertising Outreach Program is a consumer education effort funded through a “cy pres” court settlement. A second cy pres grant from Google will allow us to take this program national, a major project for BBB Institute in the coming months.

Finally, the BBB Center for Character Ethics (an affi liate of BBB Institute) entered its fourth year in 2014, and continued to promote “Character Ethics and Ethical Enterprising” to BBB service centers. Of course, all of these ventures were made possible by our generous sustaining partners and committed contributors who continue to fi nd value in our work.

BBB Institute’s commitment to marketplace impact was notable in 2014, with growth and longer term funding initiatives and opportunities. All programs remain fully funded and we continue to seek meaningful opportunities that align with our existing offerings and goals. The diligence and wise counsel of our capable fi ve-member board and trusted funding partnerships allow BBB Institute to optimally operate and move toward future positive impact in the marketplace. Trust is at the heart of all we do and with those who support our work.

I thank each of you for your support of BBB Institute for Marketplace Trust during 2014, and look forward to updating you on our progress in 2015 and beyond.

Sincerely,

Ken CarrollChairman of the BoardBBB Institute for Marketplace Trust

2 | BBB Institute for Marketplace Trust

This newly established program will ensure that our country’s veterans receive valuable information to make sound fi nancial decisions in the marketplace. As part of BBB Military and Veterans Initiative, military consumers will have access to free fi nancial education, tools and resources to help them prepare for the future. A 2014 Military Family Lifestyle survey shows that a greater emphasis needs to be placed on providing fi nancial education to military and veterans.

BBB Military and Veterans Initiative

2014 Annual Report | 3

BBB Military LineThis flagship program of BBB Institute for Marketplace Trust was launched in 2004 as a partner in the Department of Defense (DoD) Financial Readiness Campaign. During its tenure, BBB Military Line has established numerous partnerships with the private sector and government agencies. As part of the DoD Financial Readiness Campaign, Council of Better Business Bureaus (CBBB) signed Memoranda of Understanding with the DoD and departments of the Army, Navy, Air Force and Marine Corps that allow BBBs access to military installations for educational purposes. CBBB is also a U.S. Coast Guard Qualified Organization, which allows BBB Military Line to reach Coast Guard members.

With a BBB located near virtually all U.S. military installations, and within communities where military and veteran families live, BBBs deliver national- and geographically-focused informational, educational, outreach and advocacy services to the roughly 22 million current and former military members and their families who are often targeted in consumer scams and substandard business practices.

In 2014, BBB Military Line reached a total of 115,727 members of the military community.

BBB Military Line has created uniquely tailored financial literacy curricula that local BBB staff members teach on topics that include:

• The Smart Consumer (Adult and Teen)• Deals for Wheels (Adult and Teen)• How to Buy a Home• Investing for Retirement• Scams & ID Theft• Opportunities for Higher Education

4 | BBB Institute for Marketplace Trust

Financial Readiness for Returning Veterans Mobile Device InitiativeBBB Institute received a grant from American Express Foundation to create a smart phone app for returning military veterans and their families. The app allows users to build personal financial profiles, giving them access to trusted resources and a community of mentors and fellow veterans. This unique platform will include mentor oversight by financial counselors, who will provide training, access to certified counselors and assistance to military spouses working on their Accredited Financial Counselor certification.

The smart phone app will incorporate various features, including:

• Content Missions: Participants will have access to content missions which are designed in an interview way to promote positive financial choices and help address and overcome current financial challenges. These missions are calibrated to a participant’s level of need.

• Veteran-to-Veteran (V-to-V) Mentorship: The app will test the concept of V-to-V mentorship through group chat functions around each content mission where veterans can encourage and support each other, and ask and answer questions. This feature will not only leverage the proven success of peer-to-peer counseling, but also provide veterans with a virtual community at a time when they are transitioning into civilian life.

• Certified Accredited Financial Counselors: Participants will have access to certified counselors who are military spouses uniquely qualified to provide mentorship to service members and veterans. Participants with less severe financial needs will have access to mentors via text or in chat rooms; those with a greater financial need will have an opportunity to connect with counselors virtually in a face-to-face chat similar to Skype or FaceTime.

• BBBMilitaryLine,withsupportfromtheFINRAFoundation,createdthe Opportunities for Higher Education financial workshop. BBB staff conducts these in-person instructional events that focus on post-high school financial education opportunities.

• BBBMilitaryLinehelpedcreateaninformalgroupcalledtheFinancialReadiness Communities of Practice that assists and advises the DoD Financial Readiness office on issues surrounding and impacting military consumers. BBB’s partners included Defense Credit Union Council (DCUC), the FINRA Foundation, Association of Military Banks of America (AMBA) and Military Saves.

• BBBMilitaryLinecontinuedtopromoteitsrobustsocialmediaefforts,informing and alerting military consumers through Facebook, Twitter and its monthly newsletter, Trusted Scout.

2014 BBB Military and Veterans Initiative Highlights

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2014 saw the continuance of BBB Smart Investing, the landmark consumer education program that provides all investors with the necessary tools and resources to make informed investing decisions and avoid scams.

The fi rst educational offering under this important program was Outsmarting Investment Fraud, funded by a generous grant from the FINRA Investor Education Foundation, which is affi liated with the Financial Industry Regulatory Authority (FINRA). BBBs conducted campaigns and hosted educational events within their service areas to promote this program. Outreach awards were provided to BBBs that reached their target attendee goals for the educational seminars.

More than 50 BBBs received training in administering and presenting the BBB Smart Investing program to local audiences. A co-branded microsite helps bring BBB Smart Investing online, further educating and informing consumers on investment fraud.

Thanks to the clear success of the program, CBBB and the FINRA Foundation agreed to partner for a third year.

BBB Smart Investing

6 | BBB Institute for Marketplace Trust

The mission of the BBB Center for Character Ethics is to develop and conduct ethics assessments, training and recognition programs and build interpersonal and institutional trust practices locally and globally.

The Center provides thought leadership in the individual and organizational ethics fields. A unique collaboration of 14 local BBB Centers for Character Ethics, the Center has been recognized in the Top 100 Thought Leaders by Trust Across America.

In 2014, the Center joined and co-led the Torch Award Brand Unification Task Force, submitting recommendations for common criteria, eligibility and branding across the BBB system, all of which were successfully accepted by the BBB Operations Committee setting the stage for local Torch Award brand unification. The Torch Awards for Ethics program is designed to promote not only the importance of ethical business practices, but the efforts made by outstanding businesses to ensure that the marketplace remains fair for all consumers.

Education and training remained a top priority in 2014. This past year, the Center introduced the Local Center web 2.0 and is now working with CBBB to provide better IT service provision to local BBB Centers.

2014 Annual Report | 7

In 2014, BBB Institute partnered with Target Corporation, the National Cyber Security Alliance and the National Cyber-Forensics and Training Alliance, known collectively as the Allies for Consumer Digital Safety, to develop an online consumer data security awareness campaign, “Protect Your Selfi e.” The campaign, launched in October for National Cyber Security Awareness Month, targeted Millennials using a humorous “$AMMi the Hacker” character, youthful language, and colorful, contemporary graphics.

The campaign generated 155 million online impressions through Target-purchased media, including Hulu, Spotify, CollegeHumor.com and Twitter, and directed consumers to data security resources on the protectyourselfi e.org website and on the Allies’ sites.

Allies for Consumer Digital Safety

8 | BBB Institute for Marketplace Trust

BBB INSTITUTE FOR MARKETPLACE TRUSTStatement of Activities

Year Ended December 31,

2014 2013

Revenue

Education Grant . . . . . . . . . . . . . . . . . . $ 295,000 . . . . $ -

FINRA Grant . . . . . . . . . . . . . . . . . . . . . 290,500 . . . . 400,000

Cy Pres Awards . . . . . . . . . . . . . . . . . . 185,914 . . . . 418,253

Sponsorships . . . . . . . . . . . . . . . . . . . . 160,000 . . . . 140,000

Contributions . . . . . . . . . . . . . . . . . . . . 95,907 . . . . 100,179

Myers Award . . . . . . . . . . . . . . . . . . . . . 14,250 . . . . 5,800

Total Revenues . . . . . . . . . . . . . . . . . . . . 1,041,571 . . . . 1,064,232

Expenses

Program services

FINRA Grant . . . . . . . . . . . . . . . . . . . . 290,465 . . . . 293,520

Education Program . . . . . . . . . . . . . . 246,808 . . . . -

Military Program . . . . . . . . . . . . . . . . 177,433 . . . . 264,344

Other . . . . . . . . . . . . . . . . . . . . . . . . . . 33,444 . . . . 28,641

Total Program Services . . . . . . . . . . . . 748,150 . . . . 586,505

Supporting Services

Management and General . . . . . . . . 71,845 . . . . 61,897

Fundraising . . . . . . . . . . . . . . . . . . . . . 4,165 . . . . 7,123

Total Expenses . . . . . . . . . . . . . . . . . . . . 824,160 . . . 655,525

Changes in Net Assets . . . . . . . . . . . . . 217 .411 . . . . 408,707

Net Assets

Beginning of Year . . . . . . . . . . . . . . . . 442,531 . . . . 33,824

End of Year . . . . . . . . . . . . . . . . . . . . . . $ 659,942 . . . . $ 442,531

2014 Annual Report | 9

BBB INSTITUTE FOR MARKETPLACE TRUSTStatement of Financial Position

Year Ended December 31,

2014 2013

Assets

Cash and cash equivalents . . . . . . . . .$ 751,552 . . . . $ 480,190

Total assets . . . . . . . . . . . . . . . . . . . . . . . 751,552 . . . . 480,190

Liabilities and Net Assets

Accounts payable . . . . . . . . . . . . . . . . . - . . . . 850

Due to affiliated organization . . . . . . . 91,610 . . . . 36,809

Total liabilities . . . . . . . . . . . . . . . . . . . . 91,610 . . . . 37,659

Net Assets

Unrestricted . . . . . . . . . . . . . . . . . . . . . . 783 . . . . 21,728

Temporarily restricted . . . . . . . . . . . . . 659,159 . . . . 420,803

Total net assets . . . . . . . . . . . . . . . . . . . 659,942 . . . . 442,531

Total liabilities and net assets . . . . . . . .$ 751,552 . . . . $ 480,190

BBB Institute for Marketplace Trust

3033 Wilson Boulevard, Suite 600 | Arlington, VA 22201703-276-0100 | bbb.org

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