BBB Wise Giving Report for
Points of Light Institute

BBB Wise Giving Report issued April 2011
BBB Wise Giving Report expires April 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: Points of Light Institute
Address: 1875 K Street NW, 5th Floor
  Washington, DC 20006
Phone: 202-729-8000
800-750-7653
Web Address: www.pointsoflight.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1990, Georgia
Affiliates: 250 chapters
Stated Purpose: "to inspire, equip and mobilize people to take action that changes the world."

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Evaluation Conclusions

              

Points of Light Institute (PLI) does not meet the following 5 Standards for Charity Accountability.

Standard 1: Oversight of Operations and Staff - Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

PLI does not meet this Standard because its board of directors does not:

  • Have a voting member of the board who is assigned the responsibility of serving as the treasurer. In general, the board’s treasurer helps provide independent oversight of the organization’s finances.

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.

PLI does not meet this Standard because:

  • Its effectiveness assessment policy does not specify that its assessment will take place at least once every two years.

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.

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

  • Did not identify expenses for each major program activity.
  • 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.

PLI does not meet this standard because:

  • Although the organization indicates it produced an annual report, a copy was not provided.

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.

PLI does not meet this Standard because the organization's website, www.pointsoflight.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.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s governance and oversight, finances, solicitation materials, and fundraising disclosures and is unable to verify the organization's compliance with the following 4 Standards for Charity Accountability: 3, 13, 15, and 19.
Points of Light Institute (PLI) meets the remaining 11 Standards for Charity Accountability.
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Programs

              

PLI states that they have a global focus to redefine volunteerism and civic engagement for the 21st century, in order to put people at the center of community problem solving. The organization works to innovate, incubate and activate new ideas that help people act upon their power to make a difference. PLI operates three business units: HandsOn Network, MissionFish and the Civic Incubator.

For the fiscal year ended September 30, 2009, PLI's program expenses were:

  
MissionFish 12,450,745
HandsOn Network 11,399,507
Points of Light Institute 3,574,317
Children for Children foundation 1,213,129
The Civic Incubator 670,865
Total Program Expenses: $29,308,563
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Governance

              

Chief Executive : Michelle Nunn, Chief Executive Officer
Compensation*:
$197,506

Chair of the Board: Neil Bush
Chair's Profession / Business Affiliation: President and CEO, ATX Oil

Board Size: 24

Paid Staff Size: 150

*October 1, 2008 - September 30, 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, print advertisements, grant proposals, Internet appeals, door to door appeals, cause-related marketing, and membership appeals.
Fund raising costs were 3% of related contributions. (Related contributions, which totaled $31,093,533, 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 PLI's audited financial statements (consolidated with affiliate) for the fiscal year ended September 30, 2009.

Source of Funds  
Contributions 16,727,323
Federal grant revenues 6,434,238
Donations and other generated income 4,274,142
Sponsorship 2,340,848
Donated materials and services 1,241,110
Conference fees 1,155,470
MissionFish fees 1,088,778
Training fees and membership dues 704,951
Certificate fees 367,452
Special event 75,872
Investment gain 58,330
Total Income $34,468,514


chart



Uses of Funds as a % of Total Expenses

Programs: 88%  Fund Raising: 2%  Administrative: 10% 

Total income   $34,468,514
  Program expenses $29,308,563
  Fund raising expenses 782,763
  Administrative expenses 3,346,414
 
Total expenses   $33,437,740
Income in Excess of Expenses   1,030,774
Beginning net assets   3,957,901
Other Changes in Net Assets 1,541,552
Ending net assets   6,530,227
Total liabilities   8,080,956
Total assets   $14,611,183

Note: "Other changes in net assets" in the financial section above includes transfer of net assets of Children for Children Foundation.

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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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