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Posts from the ‘Non-Profits’ Category

12
Nov

How the American Red Cross Spends Revenue (2023)

When most people think of the American Red Cross (ARC), they often think of blood collection, testing, and distribution and/or disaster services – both domestic and international and in the most simplistic terms, this is what the ARC is about.

Formally known as the American National Red Cross (the organization is the designated affiliate of the International Federation of Red Cross and Red Crescent Societies), ARC was established by Clara Barton in 1881 and given a charter by Congress in 1900 and again in 1905 to carry out humanitarian services. Since that time, the charter has been amended nine times, with the most recent in 2007 to address reforms to the organization. Read more »

10
Nov

Executive Compensation at Samaritan’s Purse (2023)

Samaritan’s Purse is a tax-exempt, non-profit 501 (c) (3) established in 1970 by Bob Pierce who died in 1978. W. Franklin Graham (son of Billy Graham) became Chairman, President, and CEO of Samaritan’s Purse in 1979 and has held the position since although he is also an evangelist for the Billy Graham Evangelistic Association.

Based in Boone, North Carolina, Samaritan’s Purse is a nondenominational Christian organization that provides “spiritual and physical aid to hurting people around the world.”  How do they do this?  Primarily through grants (i.e. transporting shoebox gifts:  a box filled with toys, supplies, and hygiene items) which for the past few years averages 28% of revenue because Samaritan’s Purse focused on strengthening their balance sheet by increasing savings and to do this they spent significantly less than they collected:  Samaritan’s Purse has spent about 70-75% of revenue over the past few years which allowed them to put $200-$330 million annually into savings or $1 billion from 2020-2023 so that by year-end 2023, Samaritan’s Purse had $1.7 billion in net assets.   Read more »

8
Nov

Where Does $100 to Samaritan’s Purse Go (2023)?

Samaritan’s Purse is a tax-exempt, non-profit 501 (c) (3) established in 1970 by Bob Pierce who died in 1978. W. Franklin Graham (son of Billy Graham) became Chairman, President, and CEO of Samaritan’s Purse in 1979 and has held the position since although he is also an evangelist for the Billy Graham Evangelistic Association.

Based in Boone, North Carolina, Samaritan’s Purse is a nondenominational Christian organization that provides “spiritual and physical aid to hurting people around the world.” How do they do this? Primarily through grants (i.e. transporting shoebox gifts:  a box filled with toys, supplies, and hygiene items) which prior to 2020 averaged 40% of revenue.  But in 2020, 2021, 2022, and 2023 the percentage was lower at 28%, 27%, 28%, and 32%, respectively because Samaritan’s Purse focused on building up net assets and to do this they spent significantly less than they collected: Read more »

6
Nov

Executive Compensation at the Association of Former Students at Texas A & M (2022)

The alumni association at Texas A & M is formally known as the Association of Former Students of Texas A & M and informally known as the Aggie Network.  A tax-exempt, non-profit 501 (c), the Aggie Network’s mission is to strengthen the Texas A & M alumni network.

A relatively small non-profit, the Aggie Network has more than doubled in size (based on revenue) since 2020 when the organization raised raised about $30 million to 2022 when total revenue was reported to be $74 million, most of which came from contributions, gifts, and grants ($63 million). Read more »

4
Nov

Executive Compensation at Rotary International (2023)

Rotary International (RI) is a 501 (c) (4) – a social welfare organization that oversees 32,000 Rotary International Club organizations – based in Evanston, Illinois. Governed by a 19-member board (the president, president-elect, general secretary who is also the CEO, and Rotary Zone Directors), RI reported total revenue of $105 million most of which came from membership dues. Expenses totaled $108 million with the largest expense reported to be compensation (note:  RI also paid nearly $3 million to Accion Labs of Bridgeville, PA for staffing and consulting and $1.9 million to Softserve for staffing and $1 million to Tesystems of Hanover, MD for staffing).

RI reported having 342 employees who were compensated $44 million which equates to an average compensation of $129,000. However, only 115 individuals received more than $100,000 in compensation with the 16 most highly compensated individuals listed below: Read more »

2
Nov

Executive Compensation at Disabled American Veterans (DAV)(2023)

The Disabled American Veterans (DAV) organization is a 501 (c) (4) – a social welfare organization – that was created by Congress in 1920 to assist disabled military veterans and their families.  Based in Cold Spring, Kentucky, DAV provides services nationwide to disabled veterans through staff, national service offices and more than 1,300 local chapters. Read more »

31
Oct

Where Does $100 to Disabled American Veterans (DAV) Go (2023)?

The Disabled American Veterans (DAV) organization is a 501 (c) (4) – a social welfare organization – that was created by Congress in 1920 to assist disabled military veterans and their families.  Based in Cold Spring, Kentucky, DAV provides services nationwide to disabled veterans through staff, national service offices and more than 1,300 local chapters. Read more »

27
Oct

Executive Compensation at Harvard (2023)

Harvard is a private teaching and research university with an acceptance rate at about 5% of applicants.  Located in Boston, Massachusetts, Harvard has about 25,000 students (both undergraduate and graduate students). The annual tuition, room, board, and fees is about $85,000 which means a 4-year degree is about $340,000.

There are 13 voting members (Fellows) of the governing body, 10 of whom are independent, 8 of the 13 (62%) are male while 5 of the 13 (38%) are female. Read more »

25
Oct

Executive Compensation at St Jude (2022)

When people think of St. Jude’s, they often associate the organization with the children’s research hospital but St Jude’s is actually two organizations:

  • St. Jude Children’s Research Hospital (St Jude): the 73-bed children’s hospital that provides research and medical care; and
  • American Lebanese Syrian Associated Charities (ALSAC): the fundraising arm; an organization that exists to raise funds for St. Jude’s

Although most non-profits do not separate fundraising from services, St. Jude’s does, so both organizations need to be analyzed because St. Jude’s relies on ALSAC for the majority of it’s revenue and has a beneficial interest in the organization. Read more »

23
Oct

Where Does $100 to St Jude Go (2022)?

St. Jude’s is one of the most popular non-profit organizations in the country because the charity’s mission appeals to donors:  they treat and help children with cancer and other life threatening illnesses. But, before making donations, donors should understand where revenue is spent and that St. Jude’s is actually two organizations:

  • St. Jude Children’s Research Hospital, Inc. (St. Jude) – the 73-bed hospital and research center
  • American Lebanese Syrian Associated Charities  (ALSAC) – the fundraiser

ALSAC  “exists for the sole purpose of raising funds and building awareness to support the current and future needs of St. Jude Children’s Research Hospital, Inc” while St. Jude engages in research and provides care and services to sick children and their families.

St. Jude has a beneficial interest in the assets of ALSAC but the organizations are separate non-profit 501 (c)(3) entities with specific functions: ALSAC raises funds while St. Jude does the research and provides the treatment.

So, where does a $100 donation go?  The quick answer is that $37 went to the hospital (although they only spent $32 of that $37 putting the remaining $5 in savings), $26 to organization fundraising expenses, and $37 into savings.  For more detail, read on.

Read more »