BBB Wise Giving Report for
Global Exchange

BBB Wise Giving Report issued October 2010
BBB Wise Giving Report expires October 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: Global Exchange
Address: 2017 Mission Street, 2nd Floor
  San Francisco, CA 94110
Phone: 415-255-7296
Web Address: www.globalexchange.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1988, California
Affiliates: None
Stated Purpose: "to forge ties between North Americans and people in the Global South through cultural and educational exchange for the promotion of human rights, sustainable development, democracy and poverty alleviation."

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Evaluation Conclusions

              

Global Exchange (GE) does not meet the following 6 Standards for Charity Accountability.

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.

GE does not meet this Standard because:

  • Four (4) members out of the 25 member board of directors (16%) are directly compensated.

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.

GE does not meet this Standard because:

  • It did not produce a written report outlining the results of its most recent effectiveness assessment.

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.

GE does not meet this Standard because:

  • Although it reports revenue above $250,000, It states it does not have audited financial statements for the past year.

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.

GE does not meet this standard because:

  • The organization states it does not have an annual report covering activities conducted in the past year.

Standard 17: Web Site Disclosures - Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

GE does not meet this Standard because the organization's website, www.globalexchange.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

  • Total income.
  • Total program expenses.
  • Total fund raising expenses.
  • Total administrative expenses.
  • End of year net assets.
  • Electronic access to the organization’s most recent IRS Form 990.

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.

GE does not meet this Standard because the privacy policy on this website, www.globalexchange.org does not indicate:

  • How to inform the charity that the visitor does not want his/her information shared with others.
Global Exchange (GE) meets the remaining 14 Standards for Charity Accountability.
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Programs

              

GE conducts tours for North Americans that examine the environment, public health, women’s issues, language and culture. The organization also produces books, videos, tapes, articles and editorials to educate the public on global issues. GE’s fair trade program is designed to help build economic justice from the bottom up by providing income for artisans in over 43 countries and it also helps to educate consumers about where the goods are made. Furthermore, the organization conducts campaigns for peace, corporate accountability and the environment.

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

  
Reality tours 1,545,839
Campaigns 1,254,467
Fair trade and stores 1,079,236
Public education 189,431
Grants 122,539
Total Program Expenses: $4,191,512
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Governance

              

Chief Executive : Kirsten I. Moller, Executive Director
Compensation*:
$57,000

Highest Paid Executive: Malia Everette, Reality Tours Director
Compensation*: $63,700

Chair of the Board: Walter Turner
Chair's Profession / Business Affiliation: Professor, College of Marin

Board Size: 25

Paid Staff Size: 62

*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, planned giving, grant proposals, and Internet appeals.
Fund raising costs were 22% of related contributions. (Related contributions, which totaled $2,264,837, 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 GE's audited financial statements for the year ended December 31, 2009.

Source of Funds  
Grants and contributions 2,261,324
Reality tours 1,519,644
Sales (net) 934,483
Honoraria 40,832
Realized and unrealized gains 19,840
Interest and dividends 9,747
Other income (fees) 9,332
Special events (net) 3,513
Total Income $4,798,715


chart



Uses of Funds as a % of Total Expenses

Programs: 86%  Fund Raising: 10%  Administrative: 4% 

Total income   $4,798,715
  Program expenses $4,191,512
  Fund raising expenses 499,857
  Administrative expenses 183,653
 
Total expenses   $4,875,022
Expenses in Excess of Income   (76,307)
Beginning net assets   1,100,179
Ending net assets   1,023,872
Total liabilities   420,887
Total assets   $1,444,759


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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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