BBB Wise Giving Report for
People for the American Way Foundation

BBB Wise Giving Report issued August 2011
BBB Wise Giving Report expires August 2013


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: People for the American Way Foundation
Address: 2000 M Street NW, Suite 400
  Washington, DC 20036
Phone: 202-467-4999
800-326-7329
Web Address: www.pfaw.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1984, Delaware
Affiliates: People For the American Way, People For the American Way Voters Alliance, People For the American Way Action Fund
Stated Purpose: "to conduct research, legal and education work on behalf of First Amendment freedoms and democratic values."

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Evaluation Conclusions

              

People for the American Way Foundation (PFAWF) does not meet the following 4 Standards for Charity Accountability.

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.

PFAWF 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 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.

PFAWF 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.

PFAWF does not meet this Standard because the organization's website, www.pfaw.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.

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

  • How to inform the charity that the visitor does not want his/her information shared with others.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s effectiveness measures and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 7.
People for the American Way Foundation (PFAWF) meets the remaining 15 Standards for Charity Accountability.
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Programs

              

PFAWF works to develop and provide strategic long-term leadership training that engages constituencies in the support of the next generation of progressive policy issues leaders. The organization provides resources to the media, activists, and general public in order to educate about organizational issues, positions, activities and publications through events, multimedia outreach strategies, press releases, and editorial memoranda. PFAWF works with members and activists to engage in organizational campaigns at the local, state and national levels.

For the year ended December 31, 2010, PFAWF's program expenses were:

  
Leadership development 1,925,759
Legal and public policy 649,487
Public information 553,923
Program development 460,021
Total Program Expenses: $3,589,190
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Governance

              

Chief Executive : Michael B. Keegan, Presidet
Compensation*:
$158,530

Chair of the Board: James A. Autry
Chair's Profession / Business Affiliation: Former CEO, Meredith Corporation

Board Size: 27

Paid Staff Size: 37

*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, special events, grant proposals, Internet appeals, planned giving, and membership appeals.
Fund raising costs were 10% of related contributions. (Related contributions, which totaled $5,494,726, are donations received as a result of fund raising activities.)
PFAWF incurred joint costs of $46,000 for informational materials and activities that included fund raising materials. Of those costs, $25,000 was allocated to fund raising expenses, $12,000 was allocated to program expenses, and $9,000 was allocated to administrative expenses.
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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 PFAWF's audited financial statements for the year ended December 31, 2010.

Source of Funds  
Foundation Grants 2,733,331
Major Donors 2,311,583
Bequests 271,993
Membership Contributions 143,819
Other 40,567
Special Events 34,000
Total Income $5,535,293


chart



Uses of Funds as a % of Total Expenses

Programs: 76%  Fund Raising: 11%  Administrative: 13% 

Total income   $5,535,293
  Program expenses $3,589,190
  Fund raising expenses 539,799
  Administrative expenses 594,829
 
Total expenses   $4,723,818
Income in Excess of Expenses   811,475
Beginning net assets   1,283,104
Ending net assets   2,094,579
Total liabilities   983,292
Total assets   $3,077,871

Note: According to audited financial statements for the year ended December 31, 2010, PFAWF received $33,000 of in-kind contributions, including donated travel services ($21,000) and legal fees ($12,000).

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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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