BBB Wise Giving Report for
Room to Read

BBB Wise Giving Report issued December 2010
BBB Wise Giving Report expires December 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...


Find out more about this charity:

Back To Top

Charity Contact Information

Name: Room to Read
Address: 111 Sutter Street, 16th Floor
  San Francisco, CA 94104
Phone: 415-561-3331
Web Address: www.roomtoread.org
Back To Top

BBB Wise Giving Alliance Comments

Formerly known as:Books for Nepal

Year, State Incorporated: 1999, Washington
Affiliates: None
Stated Purpose: “ to transform the lives of children in developing countries by focusing on literacy and gender equality in education.”

Back To Top

Evaluation Conclusions

               

Room to Read (RTR) does not meet the following 2 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.

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

  • 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 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.

RTR does not meet this Standard because:

  • The paid chief executive officer also serves as the chair of the board of directors.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s governance and oversight and solicitation materials and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 15.
Room to Read (RTR) meets the remaining 17 Standards for Charity Accountability.
Back To Top

Programs

               

RtR provides donated books and software to assist schools in South and Southeast Asia. RtR also partners with local communities in that region to build schools and establish libraries with donated English books and local language books published by RtR. The organization also provides computer and language labs. Underprivileged young girls whose families are unable to afford school fees are offered scholarships for school tuition, textbooks and school accessories, uniforms, shoes, and medical care through the completion of secondary school as long as their academic performance remains satisfactory.

For the fiscal year ended December 31, 2009, RTR's program expenses were:

  
Reading room 13,709,595
School room 5,299,707
Girls' education 2,985,373
Local language publishing 1,263,913
Computer and language room 280,377
Total Program Expenses: $23,538,965
Back To Top

Governance

               

Chief Executive : John Wood, Founder and Board Chair
Compensation*:
 $175,471

Chair of the Board: John Wood
Chair's Profession / Business Affiliation: Founder and Board Chair of Room to Read

Board Size: 10

Paid Staff Size: 385

*January 1, 2009 to December 31, 2009 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Back To Top

Fund Raising

               

Method(s) Used:

Direct mail, special events, grant proposals, internet, planned giving, and cause-related marketing.
Fund raising costs were 9% of related contributions. (Related contributions, which totaled $32,813,539, are donations received as a result of fund raising activities.)
Back To Top

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.
Back To Top

Financial

               

The following information is based on RTR's audited financial statements for the fiscal year ended December 31, 2009.

Source of Funds  
Individuals 18,302,598
Foundations 5,409,025
Donations in kind 4,557,956
Corporation 4,192,452
Schools and other 351,508
FX translation 286,799
Investment income 239,651
Other 70,816
Book sales 29,182
Total Income $33,439,987


chart



Uses of Funds as a % of Total Expenses

Programs: 83%  Fund Raising: 11%  Administrative: 6% 

Total income   $33,439,987
  Program expenses $23,538,965
  Fund raising expenses 3,038,851
  Administrative expenses 1,824,427
 
Total expenses   $28,402,243
Income in Excess of Expenses   5,037,744
Beginning net assets   14,735,829
Ending net assets   19,773,573
Total liabilities   1,083,462
Total assets   $20,857,035

Note: According to the audited financial statement for January 1, 2009 to December 31, 2009, Room to Read reports gifts of in-kind income of $4,557,956. This amount consists of donated English language books ($4,009,833), office program software ($356,375), materials and services ($140,798), rent ($36,815), and office furniture ($14,135).

Back To Top

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.

Send to:



What is an Accredited Charity