Five tip-offs to trouble
in the form 990
Kris Hundley, Tampa Bay Times
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