Better Business Bureau Report for
Inspiration Corporation

Better Business Bureau Report issued March 2012
Better Business Bureau Report expires March 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: Inspiration Corporation
Address: 4554 N. Broadway
Suite 207
  Chicago, IL 60640
Phone: 773-878-0981
Web Address: www.inspirationcorp.org
Also known as:Inspiration Cafe
The Living Room Cafe
The Employment Project
Inspiration Kittens
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Better Business Bureau Comments

Year, State Incorporated: 1989, Illinois
Affiliates: None
Stated Purpose: In an atmosphere of dignity and respect, Inspiration Corporation helps people who are affected by homelessness and poverty to improve their lives and increase self-sufficiency through the provision of social services, employment training and housing.

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Evaluation Conclusions

              

Inspiration Corporation does not meet the following 4 Standards for Charity Accountability.

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.

Inspiration Corporation does not meet this Standard because:

  • Average attendance at its board meetings in the past fiscal year was less than 50%.

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.

Inspiration Corporation 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.

Standard 19: Cause Related Marketing - Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

Inspiration Corporation does not meet this Standard because, in the past year the organization participated in promotion(s) for the sale of consumer good(s) or service(s) that indicate(s) that the organization will benefit from these purchase(s). The promotion(s), however, did not specify:

  • The actual or anticipated amount of the purchase price that will benefit the organization.
Inspiration Corporation meets the remaining 16 Standards for Charity Accountability.
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Programs

              

Inspiration Corporation helps Chicagoans affected by homelessness or poverty to increase self-sufficiency through employment and permanent housing. Programs include Inspiration Kitchens food service training and social enterprise restaurants located in Uptown and East Garfield Park; The Employment Project employment preparation training and placement services and Career Connections, which helps participants to access vocational training or education that leads directly to career path employment; 154 units of scattered site, permanent supportive housing with subsidies and case management; and restaurant-style meals and case management at Inspiration Cafe in Uptown and The Living Room Cafe in Woodlawn.

For the fiscal year ended June 30, 2011, Inspiration Corporation's program expenses were:

  
Housing & Supportive Services 1,609,509
Employment 1,491,389
Training 1,056,650
Total Program Expenses: $4,157,548
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Governance

              

Chief Executive : John W. Pfeiffer, Executive Director & CEO
Compensation*: 
$97,636

Chair of the Board: Neal Kulick
Chair's Profession / Business Affiliation: human resources

Board Size: 20

Paid Staff Size: 87

*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, cause-related marketing
Fund raising costs were 13% of related contributions. (Related contributions, which totaled $3,033,598, 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 Inspiration Corporation's audited financial statements for the fiscal year ended June 30, 2011.

Source of Funds  
Governmant Grants 1,645,925
Capital Campaign 1,064,799
Foundation Grants 585,971
Contributions 579,253
In-kind Contributions 446,717
Corporation Grants 356,858
Program Income 316,607
Total Income $4,996,130


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Uses of Funds as a % of Total Expenses

Programs: 87%  Fund Raising: 8%  Administrative: 5% 

Total income $4,996,130
Program expenses $4,157,548
Fund raising expenses 390,871
Administrative expenses 253,927
Total expenses $4,802,346
Income in Excess of Expenses 193,784
Beginning net assets 4,688,589
Ending net assets 4,882,373
Total liabilities 736,355
Total assets $5,618,728


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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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