BBB Wise Giving Report for
Newborns in Need

BBB Wise Giving Report issued September 2010
BBB Wise Giving Report expires September 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...


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Charity Contact Information

Name: Newborns in Need
Address: 3323 Transou Road
  Pfafftown, NC 27040
Phone: 336-519-4843
Web Address: www.newbornsinneed.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1998, Missouri
Affiliates: 63 chapters
Stated Purpose: "to provide care necessities through local social service agencies to premature, ill or impoverished newborns to give them a safe, healthy start in life."

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Evaluation Conclusions

               

Newborns in Need (NIN) does not meet the following 3 Standards for Charity Accountability.

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.

NIN does not meet this Standard because:

  • Its audited financial statements were not audited in accordance with Generally Accepted Auditing Standards (GAAS) and Generally Accepted Accounting Principles (GAAP).  According to the audited financial statements for the year ended December 31, 2009: "Because of an inability to value non-cash donations received, we were unable to form an opinion regarding the non-cash revenue and expense in the accompanying statement of activities."

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.

NIN does not meet this Standard because, when the organization provided budget information, it indicated that the budget:

  • Did not identify total projected expenses for each major program (donations out and infant services).
  • 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.

NIN 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 income.
  • Total program expenses.
  • Total expenses for each program in the same categories that appear in the organization’s financial statements.
  • Total fund raising expenses.
  • Total administrative expenses.
  • Total end of year net assets.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s solicitation materials and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 15.
Newborns in Need (NIN) meets the remaining 16 Standards for Charity Accountability.
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Programs

               

NIN provides free clothing, blankets and other items to infants with no other source of clothing and reduced cost clothing and infant supplies through a resale shop to families with few resources. A sewing center helps low income mothers learn sewing skills which allows them to become self-sufficient. Volunteers use NIN's sewing center or free sewing patterns provided by NIN to produce infant goods including quilts, blankets, afghans, diaper shirts, gowns, hats, booties and sleepers. Any donated items that cannot be used directly for the babies' needs are sold by NIN to fund the organization's programs. NIN also provides burial layettes for newborn babies.

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

  
Donations out 1,844,404
Infant services 98,280
Total Program Expenses: $1,942,684
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Governance

               

Chief Executive : Connie Edwards, Executive Director
Compensation*:
 $0

Chair of the Board: Sam Safrit
Chair's Profession / Business Affiliation: Retired

Board Size: 9

Paid Staff Size: 1

*2009 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. The organization reports that Ms. Edwards receives no compensation.
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Fund Raising

               

Method(s) Used:

Direct mail, grant proposals, Internet appeals, and planned giving.
Fund raising costs were less than 1% of related contributions. (Related contributions, which totaled $2,008,017, 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 NIN's audited financial statements for the year ended December 31, 2009.

Source of Funds  
Non-cash contributions 1,844,404
Contributions 138,403
Fundraising income 16,077
Baby shower donations 8,843
Pattern sales 290
Other income 177
Chapter fees and convention registration 125
Total Income $2,008,319


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Uses of Funds as a % of Total Expenses

Programs: 98%  Fund Raising: Less than 1%  Administrative: 2% 

Total income   $2,008,319
  Program expenses $1,942,684
  Fund raising expenses 1,060
  Administrative expenses 43,538
 
Total expenses   $1,987,282
Income in Excess of Expenses   21,037
Beginning net assets   96,304
Ending net assets   117,341
Total liabilities   4,030
Total assets   $121,371


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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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