BBB Wise Giving Report for
Rutherford Institute

BBB Wise Giving Report issued July 2010
BBB Wise Giving Report expires July 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: Rutherford Institute
Address: 1440 Sachem Place
  Charlottesville, VA 22901
Phone: 434-978-3888
Web Address: www.rutherford.org
Back To Top

BBB Wise Giving Alliance Comments

Year, State Incorporated: 1982, Virginia
Affiliates: None
Stated Purpose: "to provide free legal services to people whose constitutional and human rights have been threatened or violated."

Back To Top

Evaluation Conclusions

              

Rutherford Institute does not meet the following 7 Standards for Charity Accountability.

Standard 2: Number of Board Members - Soliciting organizations shall have a board of directors with a minimum of five voting members.

Rutherford Institute does not meet this Standard because:

  • The organization does not have a minimum of 5 voting board members.

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.

Rutherford Institute does not meet this Standard because:

  • The paid chief executive officer also serves as the chair of the board of directors.

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.

Rutherford Institute does not meet this Standard because:

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

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.

Rutherford Institute 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.
  • 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.

Rutherford Institute does not meet this standard because:

  • The 2008 annual report did not include a roster of the board of directors
  • In addition, the organization does not produce an annual report every 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.

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

  • A roster of the board of directors.
  • 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.

Rutherford Institute does not meet this Standard because the privacy policy on its website, www.rutherford.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 solicitation materials and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 15.
Rutherford Institute meets the remaining 12 Standards for Charity Accountability.
Back To Top

Programs

              

Rutherford Institute is a civil liberties organization that aims to protect the constitutional freedoms of Americans and the human rights of all people through its legal and educational programs. Rutherford Institute provides its legal services at no charge to those whose constitutional and human rights have been threatened or violated.

For the fiscal year ended June 30, 2009, Rutherford Institute's program expenses were:

  
Legal 2,568,359
Education 638,628
Total Program Expenses: $3,206,987
Back To Top

Governance

              

Chief Executive : John W. Whitehead, President
Compensation*:
$137,591

Chair of the Board: John W. Whitehead
Chair's Profession / Business Affiliation: President and CEO of Rutherford Institute

Board Size: 4

Paid Staff Size: 10

*July 1, 2008 - June 30, 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, grant proposals, Internet appeals, planned giving, and membership appeals.
Fund raising costs were 4% of related contributions. (Related contributions, which totaled $3,547,502, 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 Rutherford Institute's audited financial statements for the fiscal year ended June 30, 2009.

Source of Funds  
Donated services 1,882,020
Donations 1,472,493
Development and planned giving 122,334
Grants and foundation gifts 63,822
Settlements 15,767
Interest and dividends 10,323
Other 8,485
Publication 6,833
Unrealized losses on investments -49,292
Total Income $3,532,785


chart



Uses of Funds as a % of Total Expenses

Programs: 92%  Fund Raising: 4%  Administrative: 4% 

Total income   $3,532,785
  Program expenses $3,206,987
  Fund raising expenses 135,641
  Administrative expenses 121,378
 
Total expenses   $3,464,006
Income in Excess of Expenses   68,779
Beginning net assets   1,014,251
Ending net assets   1,083,030
Total liabilities   67,248
Total assets   $1,150,278

Note: Rutherford Institute's audited financial statements for the fiscal year ended June 30, 2009 report donated services of $1,882,020. This amount consists of legal services.

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