BBB Wise Giving Report for
Foundation for Educational Choice

BBB Wise Giving Report issued April 2012
BBB Wise Giving Report expires April 2014


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: Foundation for Educational Choice
Address: One American Square, Suite 2420
  Indianapolis, IN 46282
Phone: 317-681-0745
Web Address: http://www.edchoice.org/
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1996, Indiana
Affiliates: None
Stated Purpose: "to promote school choice in order to improve, through competition, K-12 education for all children."

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Evaluation Conclusions

              

Foundation for Educational Choice (FEC) does not meet the following 6 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.

FEC 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.

FEC does not meet this Standard because:

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

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.

FEC does not meet this Standard because:

  • The BBB  Wise Giving Alliance requested but did not receive a copy of the organization's 2010 audited financial statements.

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.

FEC does not meet this standard because the 2010 annual report did not include:

  • A roster of the board of directors
  • Total income.
  • Total program expenses.
  • Total expenses for each program in the same categories that appear in the organization’s financial statements.
  • Total fund raising expenses.
  • Total administrative expenses.
  • Total end of year net assets.

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.

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

  • Total program expenses.
  • Total fund raising expenses.
  • Total administrative expenses.
  • End of year net assets.
  • Electronic access to the organization’s 2010 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.

FEC does not meet this Standard because:

  • Although the organization shares personal information about its donors with others, it does not provide a means (such as a check off box) in its direct mail appeals for donors to opt out of having their information shared.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s governance and oversight, finances, and solicitation materials and is unable to verify the organization's compliance with the following 5 Standards for Charity Accountability: 3, 5, 14, and 15.
Foundation for Educational Choice (FEC) meets the remaining 10 Standards for Charity Accountability.
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Programs

              

FEC works to educate the public on the practice and benefits of school choice, in each instance providing educational services to state-based organizations, individuals and policy makers. The organization's services include state based research and polling, advertising, marketing and media plans, assistance in developing school choice websites, collateral materials, fact-finding trips, expert speakers through our Speaker’s Bureau, and educational briefings for opinion leaders and state legislators.

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

  
Program services 3,242,042
Total Program Expenses: $3,242,042
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Governance

              

Chief Executive : Robert C. Enlow, President and CEO
Compensation*:
$195,049

Chair of the Board: Dr. Patrick M. Byrne
Chair's Profession / Business Affiliation: Chairman and President, Overstock.com

Board Size: 12

Paid Staff Size: 15

*2010 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, and planned giving.
Fund raising costs were 13% of related contributions. (Related contributions, which totaled $4,214,115, 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 FEC's IRS Form 990 for 2010.

Source of Funds  
Contributions and grants 4,214,115
Net unrealized gains on investments 593,142
Investment income 121,634
Total Income $4,928,891


chart



Uses of Funds as a % of Total Expenses

Programs: 79%  Fund Raising: 14%  Administrative: 7% 

Total income   $4,928,891
  Program expenses $3,242,042
  Fund raising expenses 558,840
  Administrative expenses 282,451
 
Total expenses   $4,083,333
Income in Excess of Expenses   845,558
Beginning net assets   5,139,533
Ending net assets   5,985,091
Total liabilities   233,586
Total assets   $6,218,677


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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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