BBB Wise Giving Report for
Tree Research and Educational Endowment Fund

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


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Charity Contact Information

Name: Tree Research and Educational Endowment Fund
Address: 552 S. Washington Street, Suite 109
  Naperville, IL 60540
Phone: 630-3698300
Web Address: www.treefund.org
Also known as:TREE Fund
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1975, Illinois
Affiliates: None
Stated Purpose: "to advance knowledge in the fields of arboriculture and urban forestry to benefit people, trees and the environment."

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Evaluation Conclusions

              

Tree Research and Educational Endowment Fund (TREE Fund) does not meet the following 6 Standards for Charity Accountability.

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.

TREE Fund does not meet this Standard because:

  • Although it has produced a written effectiveness assessment report, the report did not include recommendations for future actions.
  • The report was not submitted for approval to the board of directors.

Standard 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.

TREE Fund does not meet this Standard because:

  • According to the its audited financial statements for the fiscal year ended December 31, 2008, the organization spent $402,365 or 48% of its total expenses ($845,755) on program service activities.

Standard 12: Detailed Functional Breakdown of Expenses - Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

TREE Fund does not meet this Standard because, in the organization's financial statements, the detailed functional breakdown of expenses:

  • Was not included. A detailed functional breakdown shows expenses by natural classification (e.g., salaries, travel, postage, etc.) and indicates what portion of these expenses was allocated to program, fund raising, and administrative 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.

TREE Fund does not meet this standard because the most recent annual report did not include:

  • Total income.
  • Total expenses for each program in the same categories that appear in the organization’s financial statements.
  • Total fund raising expenses.
  • Total administrative expenses.

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.

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

  • Total income.
  • Total program expenses.
  • Total fund raising expenses.
  • Total administrative expenses.

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.

 TREE Fund does not meet this Standard because:

  • The organization's website, www.treefund.org, does not include a privacy policy.
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: 13.
Tree Research and Educational Endowment Fund (TREE Fund) meets the remaining 13 Standards for Charity Accountability.
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Programs

              

Based on volunteerism and philanthropy, the TREE Fund aims to support the environment by making grants for research to universities, and individual researchers. The organization provides scholarships for college students and an arboriculture educational grant program which focuses on younger children.

For the year ended December 31, 2008, TREE Fund's program expenses were:

  
Hyland R. Johns grants 269,516
John Z. Duling grants 77,433
Direct grants 30,823
Education program 24,581
Arborists' safety techniques program contributions 12
Total Program Expenses: $402,365
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Governance

              

Chief Executive : M. Janet Bornancin, Executive Director
Compensation*:
$108,668

Chair of the Board: David McMaster
Chair's Profession / Business Affiliation: Vice President; F.A. Bartlett Tree Expert Co.

Board Size: 15

Paid Staff Size: 4

*2008 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, Internet appeals, and planned giving.
Since the 2008 audited financial statements did not include a fund raising expense category, the Alliance is unable to identify a total fund raising expense figure for 2008. See evaluative conclusions section.
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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 TREE Fund's audited financial statements for the year ended December 31, 2008.

Source of Funds  
Special events 543,212
Contributions 410,539
Education program contributions 29,483
Arborists' safety and techniques program contributions 3,505
Merchandise sales 165
Investment loss -87,331
Total Income $899,573


chart



Uses of Funds as a % of Total Expenses

Programs: 47%  Fund Raising: 22%  Administrative: 31% 

Total income   $899,573
  Program expenses $402,365
  Fund raising expenses 182,740
  Administrative expenses 260,650
 
Total expenses   $845,755
Income in Excess of Expenses   53,818
Beginning net assets   1,218,871
Ending net assets   1,272,689
Total liabilities   145,527
Total assets   $1,418,216


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