BBB Wise Giving Report for
Clarion Fund

BBB Wise Giving Report issued September 2010
BBB Wise Giving Report expires September 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: Clarion Fund
Address: 255 West 36th Street, #800
  New York, NY 10018
Phone: 646-308-1230
Web Address: www.radicalislam.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 2006, Delaware
Affiliates: Publicscope Films and 1 chapter
Stated Purpose: "to educate Americans about threats to national security, particularly about radical Islam."

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Evaluation Conclusions

              

Clarion Fund (CF) does not meet the following 9 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.

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

  • Review the performance of the chief executive officer at least once every two years.
  • 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 2: Number of Board Members - Soliciting organizations shall have a board of directors with a minimum of five voting members.

CF does not meet this Standard because:

  • The organization has four  voting members of the board.

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.

CF does not meet this Standard because:

  • The board of directors did not meet in the past year.

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.

CF does not meet this Standard because:

  • Two (2) members out of the four (4) member board of directors (50%) are directly compensated.
  • The paid chief executive officer also serves as the chair of the board of directors.

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.

CF 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.

CF does not meet this Standard because:

  • It has never completed an effectiveness assessment.

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.

CF 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.

CF does not meet this Standard because the organization's website, http://www.radicalislam.org/content/about-clarion-fund, 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.

CF does not meet this Standard because:

In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s finances and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 13.
Clarion Fund (CF) meets the remaining 10 Standards for Charity Accountability.
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Programs

              

CF uses documentary film production and distribution, online education, and college outreach programs to help achieve its purpose of educating the American public about national security threats including terrorism and nuclear proliferation and helping Americans understand radical Islam.

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

  
Program services- national security advocacy 18,340,960
Total Program Expenses: $18,340,960
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Governance

              

Chief Executive : Raphael Shore, CEO
Compensation*:
$40,480

Highest Paid Executive: Richard Green, Director
Compensation*: $101,420

Chair of the Board: Raphael Shore
Chair's Profession / Business Affiliation: Filmmaker

Board Size: 4

Paid Staff Size: 4

*2008 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

Telemarketing, special events, grant proposals, and planned giving arrangements
Fund raising costs were 1% of related contributions. (Related contributions, which totaled $18,287,769, 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 CF's audited financial statements for the year ended December 31, 2008.

Source of Funds  
Contributions 18,287,769
DVD sales 227,555
Investment income 30,731
Miscellaneous revenue 3,417
Total Income $18,549,472


chart



Uses of Funds as a % of Total Expenses

Programs: 97%  Fund Raising: 1%  Administrative: 2% 

Total income   $18,549,472
  Program expenses $18,340,960
  Fund raising expenses 203,014
  Administrative expenses 324,405
 
Total expenses   $18,868,379
Expenses in Excess of Income   (318,907)
Beginning net assets   1,185,479
Ending net assets   866,572
Total liabilities   69,407
Total assets   $935,979


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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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