Better Business Bureau Report for
Starfish Learning center

Better Business Bureau Report issued May 2012
Better Business Bureau Report expires May 2014


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: Starfish Learning center
Address: 1543 W Howard St.
  Chicago, IL 60626
Phone: 773-465-4608
Web Address: www.starfishchicago.org
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Better Business Bureau Comments

Formerly known as:STarfish Enterprises

Year, State Incorporated: 12, Illinois
Affiliates: None
Stated Purpose: Since opening in 1997, Starfish Learning Center has provided educational support and recreational opportunities to hundreds of at-risk youth in Chicago’s North of Howard community. Amidst the challenges youth face in a neighborhood plagued with gangs, drugs, unemployment, and poverty, Starfish offers them hope of a better future through education, the arts, moral guidance, and more.

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Evaluation Conclusions

              

Starfish Learning center does not meet the following 7 Standards for Charity Accountability.

Standard 1: Oversight of Operations and Staff - Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

Starfish Learning center does not meet this Standard because its board of directors does not:

  • Review the performance of the chief executive officer at least once every two years.
  • Receive a copy of the organization’s IRS Form 990.

Standard 3: Frequency and Attendance of Board Meetings - An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

Starfish Learning center does not meet this Standard because:

  • The board of directors did not hold a minimum of three evenly spaced meetings in the past fiscal year.

Standard 4: Compensated Board Members - Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

Starfish Learning center does not meet this Standard because:

  • FOUR (4) member(s) out of the FIVE (5) member board of directors (80%) is/are compensated either directly or indirectly.
  • The paid chief executive officer also serves as the chair of the board of directors.

Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

Starfish Learning center does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

Standard 7: Board Approval of Written Report on Effectiveness - Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

Starfish Learning center does not meet this Standard because:

  • Although it produced a written effectiveness assessment report, it was not submitted for approval to the board of directors.

Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

Starfish Learning center does not meet this standard because the most recent annual report did not include:

  • The organization’s mission statement
  • A summary of program service accomplishments.
  • A roster of the board of directors

Standard 17: Web Site Disclosures - Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

Starfish Learning center does not meet this Standard because the organization's website, www.starfishchicago.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

  • Total income.
  • Total program expenses.
  • Total fund raising expenses.
  • Total administrative expenses.
  • End of year net assets.
  • Electronic access to the organization’s most recent IRS Form 990.
In addition, the BBB of Chicago & Northern Illinois requested but did not receive complete information on the organization’s donor privacy and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 18.
Starfish Learning center meets the remaining 12 Standards for Charity Accountability.
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Programs

              

students interact with caring staff and volunteers who assist with homework, supervise Internet access, and involve them in diverse activities. A devotional time emphasizing positive behavior and moral development is also held daily. At Starfish, we serve up to 25 students, assessing educational needs and providing services to address them. We include parents and teachers in this process to better identify challenge areas. Special programs include music and dance classes, clown workshops, outings, and an annual retreat.

For the fiscal year ended December 31, 2010, Starfish Learning center's program expenses were:

  
Program Services 117,985
Total Program Expenses: $117,985
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Governance

              

Chief Executive : Jason Croox, Executive Director
Compensation*:
$24,000

Chair of the Board: John Bailey
Chair's Profession / Business Affiliation: pastor

Board Size: 5

Paid Staff Size: 4

*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, print advertisements, grant proposals, clown gigs
Fund raising costs were 9% of related contributions. (Related contributions, which totaled $81,992, 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 Starfish Learning center's audited financial statements for the fiscal year ended December 31, 2010.

Source of Funds  
Contributions 72,380
Foundation grants 5,000
Inkind contributions 3,155
Interest Income 1,672
Fundraising events 1,457
Total Income $83,664


chart



Uses of Funds as a % of Total Expenses

Programs: 65%  Fund Raising: 4%  Administrative: 31% 

Total income   $83,664
  Program expenses $117,985
  Fund raising expenses 7,120
  Administrative expenses 56,775
 
Total expenses   $181,880
Expenses in Excess of Income   (98,216)
Beginning net assets   530,233
Ending net assets   432,017
Total liabilities   14,407
Total assets   $446,424


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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

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