Better Business Bureau Report for
Invest in Neighborhoods, Inc.

Better Business Bureau Report issued September 2010
Better Business Bureau Report expires September 2012


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: Invest in Neighborhoods, Inc.
Address: 315 West Court Street
  Cincinnati, OH 45202
Phone: (513) 921-5502
513-921-5620
Web Address: www.investinneighborhoods.com
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Better Business Bureau Comments

Year, State Incorporated: 1982, Ohio
Affiliates: None
Stated Purpose: to assist the councils with financial resources and to promote self-sufficiency and leadership skills of the councils and their residents.

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Evaluation Conclusions

              

Invest in Neighborhoods, Inc. does not meet the following 6 Standards for Charity Accountability.

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.

The charity's board of directors does not have a formal policy that the charity's performance and effectiveness will be assessed at least once every two years.

 

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, 2008, did not include a detailed functional breakdown of expenses by natural classification (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fundraising, and administrative activities.

 

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.

Despite evidence of fundraising efforts, the charity reported zero fundraising expenses in its audited financial statements for the year ended December 31, 2008.

 

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 budget provided by the charity does not clearly identify the projected amounts to be spent on programs, administration, and fundraising activities.

 

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.

Despite written requests, BBB was not provided with the charity's most recent annual report.

 

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.

The charity's website does not provide access to a privacy policy.

 

In addition, BBB requested but did not receive complete information on the charity's governance and oversight, effectiveness measures, and finances and is unable to verify the charity's compliance with the following 3 Standards for Charity Accountability: 1, 7, and 9.
Invest in Neighborhoods, Inc. meets the remaining 11 Standards for Charity Accountability.
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Programs

              

According to the charity, "currently, we have no funding so our activities are limited to (by volunteers) providing guidance and technical support to community councils."

For the fiscal year ended December 31, 2008, Invest in Neighborhoods, Inc.'s program expenses were:

  
Program Grants - Neighborhood Support Program, Neighbhorhood Business District, and Merit Grant Program 621,360
Program Grants - Neighborhood Interest Program 38,204
Total Program Expenses: $659,564
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Governance

              

Chief Executive : Mr. Rick Dieringer, Executive Director
Compensation*:

Chair of the Board: Mr. Elliott Ellis
Chair's Profession / Business Affiliation: Retired

Board Size: 13

Paid Staff Size: 0

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

              

Method(s) Used:

grant proposals
Because the charity did not provide sufficient financial information, BBB is unable to determine what percentage of related contributions was spent on fundraising. (Related contributions, which totaled $727,894, are donations received as a result of fundraising activities.)
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Tax Status

              

This charity 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 Invest in Neighborhoods' audited financial statements for the fiscal year ended December 31, 2008.

Source of Funds  
Grant Revenue 702,868
Investment Income 25,026
Miscellaneous 1,445
Net Gain (Loss) on Investments Reported at Fair Value -333,529
Total Income $395,810


chart



Uses of Funds as a % of Total Expenses

Programs: 79%    Administrative: 20%  Other Expenses: 1%

Total income   $395,810
  Program expenses $659,564
  Fund raising expenses 0
  Administrative expenses 172,097
  Other Expenses 9,833
Total expenses   $841,494
Expenses in Excess of Income   (445,684)
Beginning net assets   1,143,483
Ending net assets   702,002
Total liabilities   399,956
Total assets   $1,101,958


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