Five tip-offs to trouble
in the form 990




Kris Hundley, Tampa Bay Times

Kendall Taggart, The Center for Investigative Reporting

IRE 2014 San Francisco 
An annotated Form 990 with red flags is available here.

 # 1

How much revenue is "non-cash"?

For Cancer Fund of America,
only $5.5 million of $26.6 million in contributions
 was cash

#2

How much is spent on the mission?


From the 990:
(Part IX, Line 25, Column B)
(Part IX, Line 25, Column A)

Program Expenses
Total Expenses

At Cancer Fund of America,

the amount spent on programs was

78 %


IMPRESSIVE !!!

But remember those ""Non-Cash"" Contributions?


Check out Schedule  I to find out  how much CASH goes to the cause


At Cancer Fund of America?

Cash to cancer patients? 


Only about $10,000  a year



# 3

"Joint cost' allocation


Part IX, Line 26 

See if the charity claims it's doing good while raising money


At Kids wish network


Nearly half of the $8 million it claimed to spend on programs was spent on programs delivered by while also trying to collect money.

 "Do you know any dying kids?"

#4

HOW MUCh IS SPENT ON salaries?


From the 990: Part I, line 15 



Is that all they're getting?


Check out Part VII for executive pay

Then Schedule L for "related transactions" - loans, money from insider deals

Kids Wish Network paid its president $130,000

and his marketing firm $1.7 million


#5

Professional fundraising fees


From the 990: Part I, line 16a


Find out how much the fundraiser is keeping on Schedule G


oVER A DECADE, 

sOLICITORS for Kids Wish nETWORK

kept 86 PERCENT OF THE MONEY RAISED.


aT cANCER fUND OF aMERICA

 THEY KEPT 82 PERCENT.

BONUS TIP-OFF to trouble

 

Check the top left-hand corner of the 990's front page.

If it's been "amended"

see Schedule O for reasons why.

Other charity resources


  • Citizenaudit.org
  • State charity regulators websites (NC, NY, CA, CO and soon FL!)
  • Charity checker(http://www.tampabay.com/charitychecker/)
  • Database of disciplinary actions(http://charitysearch.apps.cironline.org/)
  • State consumer complaint databases

Questions?



khundley@tampabay.com

ktaggart@cironline.org

Nonprofits IRE 2014

By Kris Hundley

Nonprofits IRE 2014

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