| Population Connection (PC) does not meet the following Standard for Charity Accountability. |
Standard 13: Accuracy of Expenses in Financial Statements - Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.
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PC does not meet this Standard because in the Alliance's opinion, the 2006 audited financial statements do not provide accurate presentation of PC's fund raising and program service expenses.
PC provided a copy of its audited financial statements for the year ended December 31, 2006 which were prepared in accordance with Generally Accepted Accounting Principles (GAAP). According to the audited financial statements, PC incurred joint costs of $630,074. Of this amount, $511,872 was allocated to program, and $118,202 was allocated to fund raising expenses.
Based on an evaluation of PC’s sample appeals, the BBB Wise Giving Alliance disagrees with the allocation of $511,872 of expenses to the program expense category. The Alliance is of the opinion that the contents of these solicitations do not substantiate PC’s allocation of 81% of costs to program service expenses. Specifically, the only portions of the appeals that were considered fund raising were the portions that directly asked for contributions. A significant portion of the remaining content of the appeals could be considered fund raising as it is explaining why one should donate to PC rather than fulfilling a program or administrative function.
Depending on how one recognizes PC’s program expenses, its fund raising costs could be higher than the 19% of related contributions that was reported by PC and its program service expenses could be lower than 81% of total expenses also reported by PC.
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| 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: 8. |
| Population Connection (PC) meets the remaining 18 Standards for Charity Accountability. |