BBB Wise Giving Report for
Kids Alive International

BBB Wise Giving Report issued July 2011
BBB Wise Giving Report expires April 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: Kids Alive International
Address: 2507 Cumberland Drive
  Valparaiso, IN 46383
Phone: 219-464-9035
800-543-7330
Web Address: www.kidsalive.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1933, Illinois
Affiliates: None
Stated Purpose: "to reflect the love of Christ by rescuing orphans and vulnerable children, nurturing them with quality holistic care, and sharing with them the transforming power of Jesus Christ so they are enabled to instill hope in others."

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Evaluation Conclusions

               

Kids Alive International (KAI) does not meet the following 4 Standards for Charity Accountability.

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.

KAI does not meet this Standard because:

  • The board of directors held two meetings in 2010.

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.

KAI does not meet this Standard because:

  • Although it conducted an effective assessment, It did not produce a written report outlining the results of its most recent effectiveness assessment.

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.

KAI does not meet this Standard because:

  • The organization's audited financial statements did not provide a complete functional breakdown of its program services.

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.

KAI does not meet this standard because the most recent annual report did not include:

  • The organization’s mission statement
  • A roster of the board of directors
  • Total expenses for each program in the same categories that appear in the organization’s financial statements.
  • Total end of year net assets.
Kids Alive International (KAI) meets the remaining 16 Standards for Charity Accountability.
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Programs

               

KAI works to care for needy children around the world by providing food, shelter, clothing, medical care and education. The organization seeks to rescue at-risk children, especially the orphaned and abandoned; break the cycle of poverty by creating hope and practical opportunities for a better life; provide for spiritual needs; and restore communities, helping children and whole villages by encouraging leadership and self-reliance. KAI seeks to have the children in their care become responsible adult citizens through the following types of ministry outreach: residential homes for orphans and abandoned children, creating family units of “brothers and sisters” with their own Christian house parents; care centers which supply many of the services provided in KAI’s residential homes – food, medical care, Christian witness and education – to needy community children; schools where education aims to give the organization’s residential home children a more promising future; and community outreach, such as relief responses and programs to help street kids in larger cities.

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

  
Mission fields program services 4,544,092
Total Program Expenses: $4,544,092
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Governance

               

Chief Executive : Alfred R. Lackey, President
Compensation*:
 $164,347

Chair of the Board: Sherry J. Schaub
Chair's Profession / Business Affiliation: Consultant, Schaub and Associates

Board Size: 10

Paid Staff Size: 20

*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, telemarketing, special events, print advertisements, radio, grant proposals, Internet appeals, and planned giving.
Fund raising costs were 9% of related contributions. (Related contributions, which totaled $4,799,552, are donations received as a result of fund raising activities.)
KAI incurred joint costs of $89,544 for informational materials and activities that included fund raising materials. Of those costs, $37,938 was allocated to program expenses, $25,803 was allocated to fund raising expenses, and $25,803 was allocated to administrative 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 KAI's audited financial statements for the year ended December 31, 2009.

Source of Funds  
Field and other 1,673,348
Missionary support 1,388,132
Child support 1,082,288
Volunteer service teams/special projects 438,714
Building 369,878
In-kind contributions 279,416
Net realized and unrealized gains on investments 40,198
MAP 6,490
Dividend income 5,010
Interest income 1,093
Total Income $5,284,567


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Uses of Funds as a % of Total Expenses

Programs: 84%  Fund Raising: 8%  Administrative: 8% 

Total income   $5,284,567
  Program expenses $4,544,092
  Fund raising expenses 427,806
  Administrative expenses 427,806
 
Total expenses   $5,399,704
Expenses in Excess of Income   (115,137)
Beginning net assets   6,954,523
Other Changes in Net Assets (22,709)
Ending net assets   6,816,677
Total liabilities   638,740
Total assets   $7,455,417

Note1: According to KAI, in 2009, the organization received in-kind contributions in the amount of $202,128 consisting of medical equipment and supplies ($186,733), toys, clothing and equipment ($8,430), and school equipment and supplies ($6,965).
Note2: In the financial section above, "other changes in net assets refers to a change in value of split-interest agreements and a loss on disposal of property and equipment.

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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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