BBB Wise Giving Report for
Last Chance for Animals

BBB Wise Giving Report issued September 2011
BBB Wise Giving Report expires September 2013


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: Last Chance for Animals
Address: 8033 Sunset Boulevard, #835
  Los Angeles, CA 90046
Phone: 310-271-6096
Web Address: www.LCAnimal.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1985, California
Affiliates: None
Stated Purpose: "to identify, investigate, document and expose all areas of society in which animals are abused."

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Evaluation Conclusions

              

Last Chance for Animals (LCA) does not meet the following 7 Standards for Charity Accountability.

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.

LCA 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.
  • Ensure that the organization‘s arrangements with outside fundraising firms are made in writing.

Standard 2: Number of Board Members - Soliciting organizations shall have a board of directors with a minimum of five voting members.

LCA does not meet this Standard because:

  • The organization has three (3) voting members of the board.

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.

LCA 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.

LCA 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.

LCA does not meet this Standard because, in the organization's 2009 audited 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. investigations and education and public outreach).

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.

LCA does not meet this Standard because:

  • Although the organization shares personal information about its donors with others, it does not provide a means (such as a check off box) in its direct mail appeals for donors to opt out of having their information shared.

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).

LCA does not meet this Standard because:

  • The organization participates in several promotions that indicate that LCA will receive "a percentage" or "a donation," but the amount going to LCA is not actually specified.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s finances and is unable to verify the organization's compliance with the following 2 Standards for Charity Accountability: 8 and 13.
Last Chance for Animals (LCA) meets the remaining 11 Standards for Charity Accountability.
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Programs

              

LCA is committed to disseminating information about societal animal abuse in order to improve the manner in which animals are treated. LCA's ongoing educational campaigns include efforts to educate the public about animal suffering and ways to combat it using peaceful, lawful methods such as letter-writing, petition signing, civil disobedience demonstrations and product boycotts. LCA's Special Investigations Unit (SIU) conducts undercover investigations to expose cruelty and mistreatment of animals. The SIU team focuses on validating information, detecting suspect activity, exposing illegal or unethical activities and reporting them to authorities for prosecution. The information obtained in LCA's investigations is used to develop campaigns, provide grassroots education and outreach to the public, and draft legislation that will bring change for animals. Some ($152,951 or 22%) of LCA's program activities are carried out in conjunction with fund raising appeals.

For the year ended December 31, 2009, LCA's program expenses were:

  
Investigations 424,504
Education and public outreach 283,003
Total Program Expenses: $707,507
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Governance

              

Chief Executive : Chris DeRose, President
Compensation*:
$62,731

Chair of the Board: Chris DeRose
Chair's Profession / Business Affiliation: President

Board Size: 3

Paid Staff Size: 6

*2009 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

Direct mail, special events, grant proposals, Internet appeals, planned giving, cause-related marketing, and membership appeals.
Fund raising costs were 16% of related contributions. (Related contributions, which totaled $937,565, are donations received as a result of fund raising activities.)
LCA incurred joint costs of $187,153 for informational materials and activities that included fund raising materials. Of those costs, $152,951 was allocated to program expenses and $34,202 was allocated to fund raising expenses.
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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 LCA's audited financial statements for the year ended December 31, 2009.

Source of Funds  
Donations and contributions 761,908
Bequests 175,657
Other income 2,151
Royalties 2,093
Total Income $941,809


chart



Uses of Funds as a % of Total Expenses

Programs: 81%  Fund Raising: 17%  Administrative: 2% 

Total income   $941,809
  Program expenses $707,507
  Fund raising expenses 145,468
  Administrative expenses 13,678
 
Total expenses   $866,653
Income in Excess of Expenses   75,156
Beginning net assets   79,642
Ending net assets   154,798
Total liabilities   32,994
Total assets   $187,792


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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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