Standard 1: Oversight of Operations and Staff - Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.
AP does not meet this Standard because its board of directors does not:
- Review the performance of the chief executive officer at least once every two years. In addition, the organization does not meet the Standard because the CEO also serves as the chair and treasurer.
Standard 2: Number of Board Members - Soliciting organizations shall have a board of directors with a minimum of five voting members.
AP does not meet this Standard because:
- The organization has 3 voting members of the board.
Standard 3: Frequency and Attendance of Board Meetings - An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.
AP does not meet this Standard because:
- The board of directors held two meetings of the full governing board in 2010.
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.
AP does not meet this Standard because:
- All the members of the board of directors (100%) are compensated directly. In addition, AP does not meet this Standard because the paid CEO also serves as the treasurer and chairman of the board.
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.
AP 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.
AP does not meet this Standard because:
- It has not completed an effectiveness assessment in the past two years.
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.
AP does not meet this Standard because:
- Its 2010 audited financial statements were not prepared in full accordance with Generally Accepted Accounting Principles (GAAP). As noted in the auditor's report on AP, "subscription and advertising income were accounted for on a cash basis and GAAP requires such income to be recorded on an accural basis."
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.
AP does not meet this Standard because, when the organization provided budget information, it indicated that the 2011 budget:
- Did not identify total projected program service expenses.
- Did not identify total projected fund raising expenses.
- Did not identify total projected administrative expenses.
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.
AP does not meet this standard because:
- The organization states it does not have an annual report covering activities conducted in 2010.
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.
AP does not meet this Standard because the organization's website, www.animalpeoplenews.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:
- A summary of program service accomplishments.
- Total income.
- Total program expenses.
- Total fund raising expenses.
- Total administrative expenses.
- End of year net assets.
- Electronic access to the organization’s 2010 IRS Form 990.
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.
AP does not meet this Standard because the organization's website, www.animalpeoplenews.org, does not provide:
- Access to a privacy policy that includes the recommended privacy information.