BBB Wise Giving Report for
Plan USA

BBB Wise Giving Report issued December 2008
BBB Wise Giving Report expires December 2010


This BBB Accredited charity meets all 20 Standards for Charity Accountability and is a Seal Holder. Find out more...


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Charity Contact Information

Name: Plan USA
Address: 155 Plan Way
  Warwick, RI 02886-1099
Phone: 800-556-7918
401-738-5600
Web Address: www.planusa.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1939, New York
Affiliates: None
Stated Purpose: "to achieve lasting improvements in the quality of life of deprived children in developing countries.”

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Evaluation Conclusions

              

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Programs

              

Plan USA aims to enable deprived children, their families and their communities by assisting them in meeting basic needs and to increase their ability to participate in and benefit from their societies; fostering relationships to increase understanding and unity among peoples of different cultures and countries; and being an advocate for the rights and interests of the world’s children. The organization reports that it supports development programs in 49 countries through individual and corporate donations, foundations, government agencies, and child sponsorship. Plan USA operates a technical support program which designs and delivers programs in the field, and also provides training and technical assistance to field staff upon program implementation. In addition, the organization provides child sponsorship opportunities, building relationships that allow children and their sponsors to exchange letters, cards, small gifts etc. Plan USA's development and advocacy program educates the public about issues affecting children and their families in the developing world by distributing its magazines, country information booklets, and monthly e-letters.

For the fiscal year ended June 30, 2007, Plan USA's program expenses were:

  
Program and technical support 40,662,507
Building relationships 1,009,919
Development education and advocacy programs 814,408
Total Program Expenses: $42,486,834
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Child Sponsorship

              

According to Plan USA, a Family Profile Survey (FAMP), filled out by a paid staff worker or a trained community volunteer, is used as a means to gather information about sponsored children and those waiting to be sponsored. This FAMP includes information about the child's health and education, the family members who live in the home, and various descriptions of the child's dwelling as well as descriptions of the child's and family's needs, hopes, dreams, and wishes. Each year, sponsors are mailed an Annual Progress Report which contains, among other things, an updated FAMP, general information on Plan activities, Plan Passport magazine, and descriptions of specific projects that benefited the sponsored child and the community in which they live.  
 
Plan USA reports that current and prospective sponsors are made aware that funds collected are pooled and subsequently used for the benefit of sponsored children, their families and their communities. Plan USA seeks to help better the community in which the sponsored children reside. By engaging beneficiary families and enabling those families to become empowered throughout the process of improving the collective health, education, livelihood and habitat of the community, they believe the ultimate beneficiary is the child, whether directly or indirectly.  
 
As "building relationships" is stated as a focus of Plan's mission, the organization reports that correspondence between children and their sponsors is encouraged. Community volunteers deliver the correspondence to the homes of the sponsored children and read the letters to them and help, if the child is unable, to compose a response. According to Plan USA, if the child requires help in drafting the response, this is indicated in the body of the correspondence. Sponsored children are required to write to their sponsors at least once a year.  

Plan asks sponsors to commit to a contribution of $24 a month, which will support the wellbeing of the sponsored child and other children in the community.

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Governance

              

Chief Executive : W. Ahuma Adodoadji, CEO/Executive Director
Compensation*:
$60,525

Highest Paid Executive: Bruce Rutter, Director of Corporate Development & Philanthropy
Compensation*: $278,015

Chair of the Board: Jane Gibson Covey
Chair's Profession / Business Affiliation: Retired, Executive Director

Board Size: 14

Paid Staff Size: 84

*July 1, 2006 - June 30, 2007 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. Mr. Adodoadji started April 4, 2007. The former CEO received $73,302 through October 2, 2006. Mr. Rutter's compensation includes $95,415 he received as interim CEO.
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Fund Raising

              

Method(s) Used:

Direct mail, special events, print advertisements, television appeals, grant proposals, Internet appeals, planned giving, and cause-related marketing.
Fund raising costs were 11% of related contributions. (Related contributions, which totaled $49,449,785, are donations received as a result of fund raising activities.)
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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 Plan USA's audited financial statements for the fiscal year ended June 30, 2007.

Source of Funds  
Sponsorship contributions 23,249,233
Private and federal grants 19,123,690
Contributions for community projects 3,163,755
Contributions from estates, trusts and annuities 2,543,538
Investment income 1,626,181
Children's Fund 783,081
Gift program revenue 715,566
Contributions to permanently restricted endownments 586,488
Total Income $51,791,532


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Uses of Funds as a % of Total Expenses

Programs: 81%  Fund Raising: 10%  Administrative: 9% 

Total income   $51,791,532
  Program expenses $42,486,834
  Fund raising expenses 5,444,918
  Administrative expenses 4,734,084
 
Total expenses   $52,665,836
Expenses in Excess of Income   (874,304)
Beginning net assets   20,964,957
Other Changes in Net Assets 245,683
Ending net assets   20,336,336
Total liabilities   5,682,837
Total assets   $26,019,173

Note 1: Other changes in net assets represents change in unrealized appreciation ($73,333), change in value of perpetual trusts ($46,295), change in value of split interest agreements, ($126,055).

Note 2: Administrative expenses includes service to sponsors ($1,844,652) which is costumer service, facilitate communication between sponsors and sponsored children, and a toll free telephone line.

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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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