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.
ACA does not meet this Standard because:
- 2 members out of the 5 member board of directors (40%) are compensated.
- The paid chief executive officer serves as the chair of the board of directors. In addition, the treasurer of the board of directors is also compensated.
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.
ACA 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 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.
ACA does not meet this Standard because, in the organization's financial statements, the detailed functional breakdown of expenses:
- Only included one program service category. It did not include a detailed breakdown of expenses for each of its major program activities (i.e. education, advocacy, etc.)
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).
ACA does not meet this Standard because, in the past year the organization participated in promotions for the sale of consumer goods/services that indicate that the organization will benefit from the purchases. The promotions, however, did not specify:
- The actual or anticipated amount of the purchase price that will benefit the organization.