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.
St. Joseph's does not meet this Standard because:
- The paid chief executive officer also serves as the chair of the board of directors.
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.
St. Joseph's 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.
St. Joseph's does not meet this Standard because:
- It has never completed an effectiveness assessment.
Standard 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.
St. Joseph's does not meet this Standard because:
- According to the its audited financial statements - consolidated for the fiscal year ended June 30, 2010, the organization spent $26,577,938 or 51% of its total expenses ($51,795,365) on program service activities.
Standard 15: Misleading Appeals - Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.
St. Joseph's does not meet this standard because:
In the Alliance's opinion, direct mail appeals sent in 2010 cited emergency financial needs that are not evident in the financial statements St. Joseph's provided to the Alliance.
Specifically, direct mail appeals included references to St. Joseph's emergency financial needs related to the cost of utilities. Below are excerpts from such an appeal:
“South Dakota winters are known to be brutally cold. They can last up to six months. The cost to heat and light the 20 children's homes--along with classrooms and other school buildings--takes a huge toll on our budget.
"That's why I'm looking to you...for your urgent assistance. Would you please send an emergency gift right away to keep our Lakota students warm this winter?
After leaving the accounting department, I did some additional calculating. I discovered utilities alone cost us $4.68 a day per child. Now, at first glance, this may not sound like very much, but when you multiply it by 220 boys and girls, it's an enormous drain on our limited resources. The total? Over $376,254"
Given the resources available to the organization, the Alliance disagrees with the claim that the cost of utility expenses is an emergency need.
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.
St. Joseph's does not meet this standard because the most recent annual report did not include:
- A summary of program service accomplishments.
- A roster of the board of directors