Better Business Bureau Report for
Gaia-Movement Living Earth Green World Action USA, Inc.- Chicago Chapter

Better Business Bureau Report issued March 2009
Better Business Bureau Report expires March 2011


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: Gaia-Movement Living Earth Green World Action USA, Inc.- Chicago Chapter
Address: 8918 South Green Street
  Chicago, IL 60620
Phone: (773) 651-7870
Web Address: www.gaia-movement.org
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Better Business Bureau Comments

Year, State Incorporated: 1999, Indiana
Affiliates: None
Stated Purpose: The Gaia-Movement Living Earth Green World Action USA, Inc. operates to educate the general public on environmental matters and promote the environmental cause on a worldwide basis. Gaia engages in activities and support the following goals: * Establishing natural reserves, running natural reserves * Securing, renting, buying, owning, accepting as gifts and preserving virgin land as * Developing new areas as natural reserves * Reusing clothes * Preserving the natural habitat for plants and animals * Supporting sustainable forestry * Educating young and old in nature concern * Protecting the barrier reef * Protecting the mangroves * Producing CO2 neutral energy * Producing solar energy * Installing and running windmills * Professionally cleaning water * Researching into, developing, and producing nature-based sewage systems * Building sanctuaries and saving animals * Becoming part of The Gaia Movement * Practicing deep ecology natural reserves * Acting as partners in the solidary humanism

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Evaluation Conclusions

              

Gaia-Movement Living Earth Green World Action USA, Inc.- Chicago Chapter does not meet the following 7 Standards for Charity Accountability.

Standard 2: Number of Board Members - Soliciting organizations shall have a board of directors with a minimum of five voting members.

  • This organization does not meet this Standard because it has FOUR (4) voting members of the board.

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.

  • The organization does not meet this Standard since the paid chief executive officer (CEO) also serves as the chair of the board.

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.

  • The organization does not meet this Standard because it did not produce a written report outlining the results of the effectiveness assessment.
  • The organization may submit a written agreement to the BBB stating they will complete an effectiveness statement by a specific date within the next six months, to comply with this standard.

Standard 12: Detailed Functional Breakdown of Expenses - Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

  • Gaia-Movement Living Earth Green World Action USA, Inc., does not meet this standard because the audited statements do not adequately breakdown its program and fundraising expenses.

Standard 13: Accuracy of Expenses in Financial Statements - Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

  • This organization does not meet this Standard because its audited financial statements for the fiscal year ended December 31, 2007 report that the organization had no fund raising expenses.

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.

  • The organization, Gaia-Movement Living Earth Green World Action USA, Inc., does not meet this standard because it does not report any fundraising expenses in its budget for the coming fiscal year.

Standard 18: Privacy for Written Appeals & Internet Privacy - Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

  • This organization does not meet this Standard since its website, www.gaia-movement-usa.org, does not provide access to a privacy policy that includes the recommended privacy information.
In addition, the BBB of Chicago & Northern Illinois is unable to verify the organization's compliance with the following 2 Standards for Charity Accountability: 8 and 9.

The BBB of Chicago and Northern Illinois, Inc. disagrees with the organization's allocation of its program and fundraising expenses.
Gaia indicates that the collection, recycling, and resale of clothing are part of its program aimed at preserving and saving the environment.
While Gaia's audited financial statements recognize those expenses associated with the collection and resale of clothes as program expenses; the BBB of Chicago and Northern, Illinois, Inc. believes these funds to be fundraising, as clothing collections are considered a contribution.
Gaia-Movement Living Earth Green World Action USA, Inc.- Chicago Chapter meets the remaining 11 Standards for Charity Accountability.
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Programs

              

Gaia re-uses clothes and shoes. In 2008 Gaia has re-used 6 million pounds and thereby prevented it from filling up the landfills and give out emission of CO2. Gaia educates the general public in protection of the environment. Planned environmental activities for 2009 are: Production of bio-diesel for Gaia trucks, install solar panels and install sun heater at Gaia facility and make them available on our website. Participate in and organize clean up in Chicago neighborhoods In 2008 Gaia facilitated that 300,000 people from the general public were re-using clothes. 100 educational lessons on environment protection have been given to specific groups of volunteers. 2000 volunteer action hours have been spent volunteers cleaning and sorting toys for needy children in Chicago. Have been running a recycling center for plastic, paper and metal. Cleaned and distributed toys so more than 1000 children got toys for Christmas. Furthermore we have supported environmental projects overseas: Harit Sankalp India: Vermin culture, firewood saving stoves, tree-planting, latrines, gardens, waste recycling systems, compost, cleaning actions etc Gaia activities at 30 villages schools in Mozambique: tree planting, latrines, firewood saving stoves, environmental education, rope pumps installed, wells Pumps for trees Zimbabwe Gaia Info and Research: Gaia Manual – 40 Gaia Actions, Newsletters.

For the fiscal year ended December 31, 2007, Gaia-Movement Living Earth Green World Action USA, Inc.- Chicago Chapter's program expenses were:

  
Recycling/education 793,890
Donations 12,200
Total Program Expenses: $806,090
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Governance

              

Chief Executive : Eva Nielsen, Executive Director
Compensation*:
$45,000

Chair of the Board: Eva Nielsen
Chair's Profession / Business Affiliation: Executive director of The Gaia Movement USA

Board Size: 4

Paid Staff Size: 13

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

              

Method(s) Used:

collection bins
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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 Gaia-Movement Living Earth Green World Action USA, Inc.'s audited financial statements for the year ended December, 31 2007.

Source of Funds  
Resale of Donated Goods 1,195,867
Donated Cash 196
Total Income $1,196,063


chart



Uses of Funds as a % of Total Expenses

Programs: 88%    Administrative: 12% 

Total income   $1,196,063
  Program expenses $806,090
  Fund raising expenses
  Administrative expenses 108,274
 
Total expenses   $914,364
Income in Excess of Expenses   281,699
Beginning net assets   227,498
Other Changes in Net Assets (7,152)
Ending net assets   502,045
Total liabilities   392,325
Total assets   $894,370

According to Gaia’s audited financial statements for the year ending December 31, 2007, the organization recorded no fundraising expenses. The BBB of Chicago and Northern Illinois, Inc. disagrees with this allocation. See the Evaluation Conclusions section for more information.

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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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