Where Does $100 to Toys For Tots Go?

The Marine Toys For Tots Foundation (Toys For Tots) is a 501 (c) (3) that collects new toys and distributes these toys to less fortunate children at Christmas. Based in Triangle, Virginia, Toys For Tots reports the following key financial information about the organization on the IRS Form 990 (2017):

Toys For Tots employed 18 individuals who were provided with $1.8 million in total compensation, or an average $100,000 each although only 3 individuals received more than $100,000 in compensation. The 3 most highly compensated individuals were:

• $314,585:  H.P. Osman, President and CEO
• $191,361:  Brian A Murray, Secretary and VP, Ops
• $184,306:  Theodore Silvester, III, VP, M & D

$272 million in total revenue was collected in 2017, of which $210 million (77% of revenue) were non-cash donations (primarily toys). About $58 million were cash donations and $4 million came from  investments and gains on the sale of assets.

$241  million in toys were distributed in 2017.  This distribution represents 89% of total revenue. To do this, Toys For Tots took the $210 million in toy donations and spent $31 million of the $62 million in cash revenue on toys.

Toys For Tots reported $260 million in expenses, of which $241 million were toys distributed. $19 million was spent on program, management, and fundraising costs:

• $11.1 million (18% of cash revenue):  Office-related Expenses
• $ 1.8 million (3% of cash revenue):  Compensation-related Expenses
• $ 1.8 million (3% of cash revenue):  Other Fees (no detail provided)
• $ 1.7 million (3% of cash revenue):  Travel and Conferences
• $ 1.2 million (2% of cash revenue):  Professional Fundraising Fees
• $ 0.8 million (1% of cash revenue):  Public Relations and Development
• $ 0.5 million (1% of cash revenue):  Investment and Accounting Fees

Using the above information, $100 in cash revenue was spent as follows:

 $100:  Cash Revenue

-$ 50:  Toys

$ 50:  Revenue Remaining

-$ 18:  Office-related Expenses

-$  3:  Compensation-related Expenses

-$  3:  Travel and Conferences

-$  3:  Other Fees (no detail provided)

-$  2:  Professional Fundraising Fees

-$  1:  Public relations and Development

-$  1:  Investment and Accounting Fees

-$ 31: Total Office, Compensation, Travel, Other, Fees, and PR

 $ 19:  Revenue Remaining: To Fund Balance

As illustrated above, $50 out of every $100 in cash revenue received was spent on toys. Toys For Tots used $31 out of every $100 to pay for program, management, and fundraising costs, leaving $19 which they did not spend in 2017 and was added to fund assets, which had $148 million at year-end.

Net fund assets actually increased by $18 million in 2017 because Toys For Tots did not spend $12 million in cash revenue and also had $6 million in unrealized gains on investments.

In summary, Toys For Tots collected $210 million in toys in 2017. The organization also collected $62 million in cash which was spent on toys ($31 million) and functional expenses – primarily office, compensation, travel,  and fees – ($19 million). The remaining $12 million in unspent cash was added to the fund balance.  In short, Toys For Tots spent about $19 million in 2017 to collect and distribute $241 million in toys to less fortunate children.

To review the IRS Form 990 (2017), click here.