BBB Wise Giving Report for
American Foundation for Children with AIDS

BBB Wise Giving Report issued February 2011
BBB Wise Giving Report expires February 2012


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...


Find out more about this charity:

Back To Top

Charity Contact Information

Name: American Foundation for Children with AIDS
Address: 6221 Blue Grass Avenue
  Harrisburg, PA 17112
Phone: 717-489-0206
888-683-8323
Web Address: www.helpchildrenwithaids.org
Back To Top

BBB Wise Giving Alliance Comments

Year, State Incorporated: 2004, Kansas
Affiliates: None

Stated Purpose: “to improve the lives of children and youth struggling with the impact of the HIV/AIDS pandemic.”

Back To Top

Evaluation Conclusions

               

American Foundation for Children with AIDS does not meet the following Standard 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.

AFCA does not meet this Standard because:

  • In the Alliance's opinion, the organization lacks adequate board oversight.  According to a consent agreement from the Commonwealth of Pennsylvania, AFCA's 2008 IRS Form was submitted without certain material information such as proper disclosures regarding related party transactions and compensation from related organizations (See section on government action).  The Alliance believes that the board of directors is responsible for reviewing financial filings and the fact that these omissions were not discovered beforehand shows a lack of sufficient oversight.

Charity's response:

AFCA has indicated that, "In October 2009, the American Foundation for Children with AIDS was cited by the Commonwealth of Pennsylvania for several infractions that violated code issues related to the oversight of charitable organizations.  The Commonwealth of Pennsylvania, adhering to the letter of the law, fined AFCA $4000 for failure to properly report various items on our State report, as well as the specific accusation charging AFCA with supplying "material false statements", which we vehemently rejected then and do so today.    Unfortunately, AFCA's naivety in relying solely on the expertise of the accounting firm, and as such, our failure to appropriately oversee this service provider’s work related to the preparation of the State report, left us with little choice but to sign the consent agreement and order provided by the Commonwealth of Pennsylvania.  Our only other option, to engage in a long, expensive legal battle, would have drained us of critical financial resources and put at risk the various programs we support in Sub-Saharan Africa.  Consequently, the Board of Directors made the extremely difficult decision to accept the consent order.   It should be noted that the accounting firm that prepared the errant filings which led to the violations, paid the entire fine."
American Foundation for Children with AIDS (AFCA) meets the remaining 19 Standards for Charity Accountability.
Back To Top

Programs

               

AFCA is a non-profit organization that helps HIV+ children, their HIV+ guardians and HIV+ pregnant women in sub-Saharan Africa who have no other access to aid. The organization works with HIV + pregnant women to prevent the infection of babies during pregnancy, childbirth and breastfeeding. AFCA also works to prevent HIV+ children from becoming orphans by providing treatment for their parents. Furthermore, AFCA acquires and sends ATMIT (an easily digestible oat based cereal) to partners in Zimbabwe and Kenya, where drought and civil unrest have damaged crops. The cereal along with the anti-retroviral drugs creates a complete medicine for children and guardians who otherwise will have no food to consume with the strong medication. AFCA also sends new, sterilized supplies, and medical equipment to be utilized in rural clinics in Uganda under the care of Mulago Hospital’s Pediatric Infectious Disease Center. The organization also provides medical supplies to partner hospitals in Kenya and Zimbabwe.

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

  
Commodity distribution 6,719,870
Total Program Expenses: $6,719,870
Back To Top

Governance

               

Chief Executive : Tanya Weaver, Executive Director
Compensation*:
 $66,492

Chair of the Board: Nicholas Cassino
Chair's Profession / Business Affiliation: Managing Director of CB Richard Ellis

Board Size: 5

Paid Staff Size: 3

*2009 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Back To Top

Fund Raising

               

Method(s) Used:

Direct mail, telemarketing, special events, print advertisements, grant proposals, Internet appeals, and planned giving.
Fund raising costs were 11% of related contributions. (Related contributions, which totaled $7,765,997, are donations received as a result of fund raising activities.)
Back To Top

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.
Back To Top

Financial

               

The following information is based on AFCA's audited financial statements for the year ended December 31, 2009.

Source of Funds  
Gifts in-kind 6,527,918
Contributions 1,201,200
Grants 36,879
Interest 480
Total Income $7,766,477


chart



Uses of Funds as a % of Total Expenses

Programs: 87%  Fund Raising: 12%  Administrative: 1% 

Total income   $7,766,477
  Program expenses $6,719,870
  Fund raising expenses 893,021
  Administrative expenses 73,188
 
Total expenses   $7,686,079
Income in Excess of Expenses   80,398
Beginning net assets   94,224
Ending net assets   174,622
Total liabilities   143,317
Total assets   $317,939

Note: According to AFCA's 2009 audited financial statements, the organization received $6,527,918 in in-kind donations including medicines ($5,915,090), medical supplies ($344,400), and food ($268,428).

Back To Top

Government Action

               

In October 2009, the Commonwealth of Pennsylvania Bureau of Charitable Organizations filed charges against the American Foundation for Children With AIDS, Inc. (AFCA) which concluded in a Consent Agreement which was signed by both parties in July 2010.

The charges filed as well as the Consent Agreement details AFCA's omission of material information in its Form 990 and other filed reports.  These errors include AFCA's failure to properly disclose a key employee salary, consultant fees, independent contractor fees as well as fundraising fees and cash/non-cash contributions.

The case was deemed resolved in July 2010 after the Secretary of the Commonwealth of Pennsylvania issued an order adopting the Consent Agreement and after the stipulated fine had been paid.

 

 

Back To Top

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.

Send to:



What is an Accredited Charity