Better Business Bureau Report for
Little Brothers - Friends of the Elderly

Better Business Bureau Report issued May 2011
Better Business Bureau Report expires May 2013


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: Little Brothers - Friends of the Elderly
Address: 355 N. Ashland Avenue
  Chicago, IL 60607
Phone: 312-455-1000
Web Address: Chicago.littlebrothers.org
Also known as:Little Brothers
LBFE
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Better Business Bureau Comments

Formerly known as:Little Brothers of the Poor

Year, State Incorporated: 1959, Illinois
Affiliates: None
Stated Purpose: Little Brothers – Friends of the Elderly is a national network of non-profit volunteer-based organizations committed to relieving isolation and loneliness among the elderly. We offer to people of goodwill the opportunity to join the elderly in friendship and celebration of life.

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Evaluation Conclusions

               

Little Brothers - Friends of the Elderly does not meet the following 3 Standards for Charity Accountability.

Standard 9: Fund Raising Expense Ratio - Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

Little Brothers - Friends of the Elderly does not meet this Standard because:

  • According to its audited financial statements for the fiscal year ended September 30, 2009, the organization's fund raising costs were 52% ($646,832) of related contributions, which totaled $1,242,525.

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.

Little Brothers - Friends of the Elderly does not meet this Standard because:

  • According to its audited financial statements for the fiscal year ending September 30, 2009, the organization's total unrestricted net assets were $13,003,088, or 4 times the charity's total budgeted expenses of $3,403,979.

Standard 14: Budget - Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

Little Brothers - Friends of the Elderly does not meet this Standard because, when the organization provided budget information, it indicated that the budget:

  • Did not identify total projected fund raising expenses.
In addition, the BBB of Chicago & Northern Illinois requested but did not receive complete information on the organization’s governance and oversight, effectiveness measures, and solicitation materials and is unable to verify the organization's compliance with the following 7Standards for Charity Accountability: 1, 2, 4, 5, 6, 7, and 15.
Little Brothers - Friends of the Elderly meets the remaining 9 Standards for Charity Accountability. Please note that as of the date of this report 1 out of the 20Standards for Charity Accountability are not currently effective. As a result, this standard has not been applied to this evaluation.
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Programs

               

Little Brothers – Friends of the Elderly programs are free and designed to relieve isolation and loneliness through friendship, socialization and activities. Are elders are diverse, and we respect them all. Some are very social and enjoy great hoopla, others simply want a quiet conversation. Some are homebound while others are very mobile. With a wide variety of programs created with great consideration to the unique preferences, and needs, we are able to accommodate our Old Friends.

For the fiscal year ended September 30, 2009, Little Brothers - Friends of the Elderly's program expenses were:

  
Salaries and Payroll Taxes 1,185,778
Transfers to National Organizations 466,674
Staff Insurance and Pension 192,883
Food, Supplies, Materials for Programs 155,781
Occupancy 113,726
Donated Goods 107,611
Legal, Audit and Consultants' Fees 92,727
Vehicle and Transportation 86,782
Depreciation 77,584
Entertainment and Gifts for the Elderly 73,330
General Development 70,333
Telephone 34,182
Volunteer Recognition 26,198
Office and Miscellaneous 20,376
Printing, Copying and Advertising 10,878
Staff Development and Recognition 5,953
Postage 5,464
Travel 103
Total Program Expenses: $2,726,363
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Governance

               

Chief Executive :
Compensation*:

Chair of the Board:
Chair's Profession / Business Affiliation:

Board Size:

Paid Staff Size:

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

               

Method(s) Used:


Fund raising costs were 52% of related contributions. (Related contributions, which totaled $1,242,525, 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 Little Brothers - Friends of the Elderly's audited financial statements for the fiscal year ended September 30, 2009.

Source of Funds  
Contributions, General 814,988
Interest and Dividends 535,861
Grants - Corporate and Foundation 267,823
Donated Materials 107,611
Contributions, Planned Gifts 49,051
Trusts 27,096
Income from Foundation 11,477
Other Revenue 6,879
Special Events 3,052
Total Income $1,823,838


chart



Uses of Funds as a % of Total Expenses

Programs: 74%  Fund Raising: 18%  Administrative: 8% 

Total income   $1,823,838
  Program expenses $2,726,363
  Fund raising expenses 646,832
  Administrative expenses 274,860
 
Total expenses   $3,648,055
Expenses in Excess of Income   (1,824,217)
Beginning net assets   14,973,477
Other Changes in Net Assets 1,358,328
Ending net assets   14,507,588
Total liabilities   355,686
Total assets   $14,863,274


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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.

This report is not to be used for fund raising or promotional purposes.

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