Better Business Bureau Report for
The Hadley School For The Blind

Better Business Bureau Report issued June 2013
Better Business Bureau Report expires June 2015


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: The Hadley School For The Blind
Address: 700 Elm Street
  Winnetka, IL 60093
Phone: 847-446-8111
Web Address: www.hadley.edu
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Better Business Bureau Comments

Year, State Incorporated: 1920, Illinois
Affiliates: None
Stated Purpose: The mission of The Hadley School for the Blind is to promote independent living through lifelong distance education programs for people who are blind or visually impaired, their families and blindness service providers.

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Evaluation Conclusions

              

The Hadley School For The Blind does not meet the following Standard for Charity Accountability.

Standard 10: Ending Net Assets - Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

The Hadley School For The Blind does not meet this Standard because:

  • According to its audited financial statements for the fiscal year ending June 30, 2012, the organization's total unrestricted net assets were $62,195,086, or 9 times the charity's total budgeted expenses of $6,719,000.
Regarding Standards 10 and 16 The Hadley School submitted the following statements:

Standard 10:The $62,195,086 that is referenced by the BBB as "unrestricted net assets" is not unrestricted. It is the school's endowment, and it is invested in order to generate income. Hadley uses the earnings from the endowment each year to fund the majority of its operating budget. The endowment principal is not available to fund programs.
The Hadley School For The Blind meets the remaining 19 Standards for Charity Accountability.
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Programs

              

The Hadley School for the Blind offers about 100 distance education courses in a wide range of subjects and serves nearly 10,000 students each year from around the world. Hadley’s courses serve those who are blind or severely visually impaired, age 14 or older, who are able to study using the English language. Blindness professionals, such as teachers and rehabilitation counselors, and family members of blind children or adults, also take Hadley courses. Hadley courses are tuition-free for students who are blind or visually impaired and their families. Particular areas of focus include braille literacy, accessible technology, and careers and entrepreneurship. Major initiatives include an entrepreneurship and education training program and courses for blinded veterans. The school is accredited by the Accrediting Commission of the Distance Education and Training Council and the North Central Association Commission on Accreditation and School Improvement.

For the fiscal year ended June 30, 2012, The Hadley School For The Blind's program expenses were:

  
Education and Public Education 5,369,892
Total Program Expenses: $5,369,892
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Governance

              

Chief Executive : Charles E Young, President
Compensation*: 

Chair of the Board: Judith B. Castellini
Chair's Profession / Business Affiliation: Civic Leader

Board Size: 48

Paid Staff Size: 72

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

direct mail, invitations to fund raising events, grant proposals, internet, planned giving arrangements
Fund raising costs were 14% of related contributions. (Related contributions, which totaled $2,926,276, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on The Hadley School For The Blind's audited financial statements for the fiscal year ended June 30, 2012.

Source of Funds  
Contributions 2,926,276
Net realized gains on sales of investments 1,607,703
Investment Income (net of management fees of $104,715) 1,480,479
Other 449,349
Tuition 17,055
Net Change in unrealized gain/loss on investments -4,416,820
Total Income $2,064,042


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Uses of Funds as a % of Total Expenses

Programs: 78%  Fund Raising: 6%  Administrative: 16% 

Total income $2,064,042
Program expenses $5,369,892
Fund raising expenses 404,949
Administrative expenses 1,074,455
Total expenses $6,849,296
Expenses in Excess of Income (4,785,254)
Beginning net assets 74,995,121
Ending net assets 70,209,867
Total liabilities 1,079,491
Total assets $71,289,358


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