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.
The Foundation 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.
- Approve the organization’s budget.
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.
The Foundation 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.
The Foundation does not meet this Standard because:
- It has never completed an effectiveness assessment.
Standard 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.
The Foundation does not meet this Standard because:
- According to the its audited financial statements for the fiscal year ended December 31, 2009, the organization spent $1,712,319 or 57% of its total expenses ($2,980,439) on program service activities.
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.
The Foundation does not meet this standard because the most recent annual report did not include:
- Total program expenses.
- 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.
The Foundation does not meet this Standard because the organization's website, www.vh1savethemusic.com, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:
- Program expenses.
- Fund raising expenses.
- Administrative Expenses.
- End of year net assets.
- Electronic access to the organization’s most recent IRS Form 990.
Standard 19: Cause Related Marketing - Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).
The Foundation does not meet this Standard because, in the past year the organization participated in promotion(s) for the sale of consumer good(s) or service(s) that indicate(s) that the organization will benefit from these purchase(s). The promotion(s), however, did not specify:
- The actual or anticipated amount of the purchase price that will benefit the organization.
- The applicable time period the campaign is effective (e.g., during the month of October).