BBB Wise Giving Report for
Population Connection

BBB Wise Giving Report issued July 2008
BBB Wise Giving Report expires July 2010


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: Population Connection
Address: 2120 L Street, NW
Suite 500
  Washington, DC 20037
Phone: 202-332-2200
800-767-1956
Web Address: www.populationconnection.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1968, District of Columbia
Affiliates: 7 chapters
Stated Purpose: "to slow population growth and achieve a sustainable balance between the Earth's people and its resources through advocacy and education."

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Evaluation Conclusions

              

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.

  • 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.

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.
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Programs

              

PC works to slow population growth and achieve a sustainable balance between the Earth’s people and its resources. The organization seeks to protect the environment and ensure a high quality of life for present and future generations. PC’s education and advocacy programs aim to influence public policies, attitudes, and behavior on national and global population issues and related concerns. Some ($511,827 55%) of NP's communication activities are carried out in conjunction with fund raising appeals.

For the year ended December 31, 2007, PC's program expenses were:

  
Communications 937,501
Population education 665,099
Field and outreach 391,545
Government relations 315,330
Total Program Expenses: $2,309,475
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Governance

              

Chief Executive : John Seager, President & CEO
Compensation*:
$145,722

Chair of the Board: Patricia Burke
Chair's Profession / Business Affiliation: Nurse/Professor

Board Size: 20

Paid Staff Size: 20

*2006 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, grant proposals, Internet appeals, planned giving, and membership appeals.
Fund raising costs were 31% of related contributions. (Related contributions, which totaled $3,149,059, are donations received as a result of fund raising activities.)
PC incurred joint costs of $630,074 for informational materials and activities that included fund raising materials. Of those costs, $511,872 was allocated to communication expenses and $118,202 was allocated to fund raising expenses.
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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 PC's audited financial statements for the year ended December 31, 2007.

Source of Funds  
Contributions 1,869,720
Membership 873,339
In-kind contributions 246,000
Grants 160,000
Investment income 106,021
Other revenue 55,985
Total Income $3,311,065


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Uses of Funds as a % of Total Expenses

Programs: 64%  Fund Raising: 27%  Administrative: 9% 

Total income   $3,311,065
  Program expenses $2,309,475
  Fund raising expenses 979,622
  Administrative expenses 332,630
 
Total expenses   $3,621,727
Expenses in Excess of Income   (310,662)
Beginning net assets   1,665,922
Ending net assets   1,355,260
Total liabilities   742,246
Total assets   $2,097,506

Note: Fund raising expenses of $367,518 and membership services expenses of $612,104 have been combined within the financial section of this report under fund raising expenses.

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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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