Better Business Bureau Report for
Children's Hospital Foundation

Better Business Bureau Report issued November 2014
Better Business Bureau Report expires November 2016


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: Children's Hospital Foundation
Address: 224 E. Broadway - 5th Floor
  Louisville, KY 40202
Phone: 502-629-8060
Web Address: www.nortonhealthcare.com/help/chf
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Better Business Bureau Comments

Year, State Incorporated: 1962, Kentucky
Affiliates: None
Stated Purpose: The Children’s Hospital Foundation is the philanthropic arm of Kosair Children’s Hospital and operates solely to raise funds and generate volunteer support for the services, programs, and equipment needs outlined in the Hospital’s strategic plan.

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Evaluation Conclusions

              

Children's Hospital Foundation does not meet the following Standard for Charity Accountability.

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.

Financial statements do not inlcude a detailed statement of functional expenses.

The Children's Hospital Foundation was provided an opportunity to respond to the compliance issue and responded as follows:  The Statement of Functional Expenses is only required by generally accepted accounting principles (GAAP) for Not for Profit Organizations which are Voluntary Health and Welfare Organizations (such as the Red Cross or United Way).  This statement is not required by GAAP for The Children’s Hospital Foundation. Adding this statement would add complexity to our accounting and reporting processes and increase external audit procedures, which would increase  Foundation expenses. It is in the best interest of the organization and our donors to avoid unnecessary operating costs.

Children's Hospital Foundation meets the remaining 19 Standards for Charity Accountability.
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Programs

              

Kosair Children’s Hospital is the only freestanding, full-service pediatric tertiary care facility in Kentucky dedicated exclusively to providing quality medical treatment to all children in need of care, regardless of their ability to pay. During 2013, over 150,000 children from throughout Kentucky and Southern Indiana received medical care at Kosair Children's Hospital, which treats children from birth to age 18. The services and programs provided cover nearly every aspect of care and treatment for children – from the tiniest premature infant to the adolescent with traumatic head or spinal injuries – all in a child-friendly, family-centered atmosphere. Kosair Children’s Hospital is the primary pediatric teaching facility for the University of Louisville Department of Pediatrics. Ensuring quality of care for both today and tomorrow, the hospital has a strong commitment to medical education and innovative research.

For the fiscal year ended December 31, 2013, Children's Hospital Foundation's program expenses were:

  
Capital Projects 5,590,599
Programs 4,393,035
Financial Assistance 275,308
Faculty Support 64,094
Total Program Expenses: $10,323,036
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Governance

              

Chief Executive : Lynnie Meyer, Chief Development Officer
Compensation*: 

Chair of the Board: Cindi Shrader
Chair's Profession / Business Affiliation: Financial Advisor, MetLife

Board Size: 27

Paid Staff Size: 22

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Fund Raising

              

Method(s) Used:

Methods of fund raising include direct mail, invitations to fund raising events, print advertisements, television, radio, grant proposals, internet, and planned giving arrangements.
Fund raising costs were 17% of related contributions. (Related contributions, which totaled $11,122,464, are donations received as a result of fund raising activities.)

Each dollar spent on fund raising generated $5.86 in contribution revenue.

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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 Children's Hospital Foundation's audited financial statements for the fiscal year ended December 31, 2013.

Ending net assets as reported below include $31,928,534 in unrestricted net assets , $32,645,421 in temporarily restricted net assets, and $21,939,453 in permanently restricted net assets.



Source of Funds  
Donations & Gifts 10,909,238
Investment Income 7,484,576
Change in Value of Outside Trusts 1,708,756
Bequests 793,337
Transfers from Affiliates 428,217
Gift Shop Revenue 310,785
Gaming Income 213,226
Total Income $21,848,135


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Uses of Funds as a % of Total Expenses

Programs: 79%  Fund Raising: 15%  Administrative: 5%  Other Expenses: 1%

Total income $21,848,135
Program expenses $10,323,036
Fund raising expenses 1,897,041
Administrative expenses 647,841
Other Expenses 162,776
Total expenses $13,030,694
Income in Excess of Expenses 8,817,441
Beginning net assets 77,695,967
Ending net assets 86,513,408
Total liabilities 2,558,509
Total assets $89,071,917


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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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