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.
AL does not meet this Standard because:
- 2 members out of the 6 member board of directors (33%) are paid.
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.
AL does not meet this Standard because:
- Its 2010 audited financial statements were not fully prepared in accordance with Generally Accepted Accounting Principles (GAAP). Specifically, the auditor's opinion letter indicates that AL does not have adequate systems in place to account for the ultimate resolution of temporarily restricted website contributions.
Standard 12: Detailed Functional Breakdown of Expenses - Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.
AL does not meet this Standard because, in the organization's 2010 financial statements, the detailed functional breakdown of expenses:
- Only included one program service category. It did not include a detailed breakdown of expenses for each of its major program activities.
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.
AL does not meet this standard because:
- The organization does not have an annual report covering activities conducted in 2010.
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.
AL does not meet this Standard because the organization's website, www.africanleadership.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.
- 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.
AL does not meet this Standard because the organization's website, www.africanleadership.org, does not have:
- A privacy policy that includes the recommended information.