BBB Wise Giving Report for
Interfaith Alliance Foundation

BBB Wise Giving Report issued May 2010
BBB Wise Giving Report expires May 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: Interfaith Alliance Foundation
Address: 1212 New York Ave NW, Suite 1250
  Washington, DC 20005
Phone: 202-238-3300
Web Address: www.interfaithalliance.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1995, District of Columbia
Affiliates: 21 chapters
Stated Purpose: "to promote the positive and healing role of religion in public life through education, research, and civil discourse."

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Evaluation Conclusions

              

Interfaith Alliance Foundation (IAF) does not meet the following 7 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.

IAF does not meet this Standard because:

  • The board of directors held three meetings within the past year, but only one of the meetings was held in person. 

Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

IAF does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

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.

IAF does not meet this Standard because:

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

Standard 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.

IAF does not meet this Standard because:

  • According to the its audited financial statements - consolidated for the fiscal year ended December 31, 2008, the organization spent $1,985,214 or 52% of its total expenses ($3,853,639) on program service 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.

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

  • Was not approved by the organization’s board of directors.
  • Did not identify total projected program service expenses for each of its major program categories .
  • Did not identify total projected fund raising expenses.
  • 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.

IAF does not meet this standard because:

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

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.

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

  • What security measures are in place to protect personal information that is collected.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s governance and oversight and solicitation materials and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 15.
Interfaith Alliance Foundation (IAF) meets the remaining 12 Standards for Charity Accountability.
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Programs

              

IAF promotes protecting the integrity of both religion and democracy in America. The organization researches and analyzes legislation relevant to the intersection of religion and government and helps religious leaders and politicians navigate the boundary between politics and religion in a way that safeguards the separation of church and state. IFA also facilitates interfaith dialogue to enhance mutual understanding and respect for religious tolerance differences.

For the year ended December 31, 2008, IAF's program expenses were:

  
Grassroots organizing, religious outreach and issue advocacy 1,077,695
Education, research and civil discourse 907,519
Total Program Expenses: $1,985,214
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Governance

              

Chief Executive : Rev. Dr. C. Welton Gaddy, President
Compensation*:
$234,555

Chair of the Board: Rev. Dr. Galen Guengerich
Chair's Profession / Business Affiliation: Minister

Board Size: 15

Paid Staff Size: 12

*2008 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, special events, grant proposals, Internet appeals, planned giving, and major donor appeals.
Fund raising costs were 25% of related contributions. (Related contributions, which totaled $2,950,451, are donations received as a result of fund raising activities.)
IAF incurred joint costs of $835,109 for informational materials and activities that included fund raising materials. Of those costs $250,720 was allocated to program expenses, $584,389 was allocated to fund raising expenses, and .
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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 IAF's audited financial statements - consolidated for the year ended December 31, 2008.

Source of Funds  
Membership contributions 1,492,530
Contributions 519,121
Foundation grants 499,577
Leadership donors 439,223
Rental income 113,748
Other income 5,818
Total Income $3,070,017


chart



Uses of Funds as a % of Total Expenses

Programs: 51%  Fund Raising: 19%  Administrative: 30% 

Total income   $3,070,017
  Program expenses $1,985,214
  Fund raising expenses 725,123
  Administrative expenses 1,143,302
 
Total expenses   $3,853,639
Expenses in Excess of Income   (783,622)
Beginning net assets   (182,222)
Ending net assets   (965,844)
Total liabilities   1,411,895
Total assets   $446,051


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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.

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