Standard 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.
According to the charity’s audited financial statements for the year ended December 31, 2009, the charity spent $675,003 or 47% of its total expenses ($1,425,665) on program service activities.
Standard 11: Financial Statements - Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $250,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $250,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $100,000, an internally produced, complete financial statement is sufficient to meet this standard.
CISV USA does not meet this standard because the charity’s audited financial statements were not completed in conformity with GAAP (generally accepted accounting principles).
According to the charity’s audited financial statements for the year ended December 31, 2009, “...U.S. generally accepted accounting principles require the consolidation of related organizations if certain conditions are met. Foundation for Cross-Cultural Understanding has met these requirements. The Organization has not adopted this accounting principle.”
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.
The charity’s audited financial statements for the year ended December 31, 2009, did not include a detailed functional breakdown that shows expenses by natural classification (e.g., salaries, travel, postage, etc.) and indicates what portion of these expenses was allocated to programs, fundraising, and administrative activities.
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.
The charity has a website that requests contributions, but the website does not include financial information for the past fiscal year, which includes total income, expenses by programs, fundraising, and administration, and total ending net assets. Additionally, the website does not include a link to the charity’s most recent IRS Form 990, the annual financial form filed with the Internal Revenue Service.