BBB Wise Giving Report for
Medical Missions for Children

BBB Wise Giving Report issued October 2010
BBB Wise Giving Report expires October 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: Medical Missions for Children
Address: 35 Getty Avenue, Building 400
  Paterson, NJ 07503
Phone: 973-754-4960
Web Address: www.mmissions.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1999, New Jersey
Affiliates: None
Stated Purpose: "to improve medical outcomes of critically-ill children in underserved communities thoughout the world."

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Evaluation Conclusions

              

Medical Missions for Children (MMC) does not meet the following 9 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.

MMC 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.

Standard 3: Frequency and Attendance of Board Meetings - An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

MMC does not meet this Standard because:

  • The board of directors held two meetings in the past year.

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.

MMC does not meet this Standard because:

  • The chair of the board is the paid CEO.

Standard 5: Conflict of Interest - No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

MMC does not meet this Standard because:

  • The CEO of the organization is a principal in a for-profit company that received a loan from the organization.  As per the 2009 audited financial statements: ". . . one of the officers of the Organization formed two for-profit companies with the intent that the profit generated by these companies would be donated to the Organization.  During the year, the Organization loaned one of the companies $186,882 to fund the start-up of operations."

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.

MMC 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.

MMC does not meet this Standard because:

  • It has never completed an effectiveness assessment, and does not have one planned in the near future.

Standard 14: Budget - Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

MMC does not meet this Standard because the organization indicated that:

  • It did not produce a budget for the current year.

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.

MMC does not meet this standard because:

  • The organization states it does not have an annual report covering activities conducted in the past year.

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.

MMC does not meet this Standard because the organization's website, www.mmissions.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.
  • End of year net assets.
  • The organization’s mailing address.
  • Electronic access to the organization’s most recent IRS Form 990.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s solicitation materials and is unable to verify the organization's compliance with the following Standard for Charity Accountability: 15.
Medical Missions for Children (MMC) meets the remaining 10 Standards for Charity Accountability.
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Programs

              

MMC channels its resources toward the mission of eliminating the knowledge disparity that exists between medical professionals educated in the United States and those trained in less developed parts of the world. By leverageing satellite, cellular, optic and internet communications technologies, MMC facilitates real-time interactive medical consultations and education, as well as provides unlimited access to a repository of digitally-stored medical videos. Access to MMC's video library is accomplished through the use of a global satellite broadcasting channel, and an internet-based search, retrieval and "view-on-demand" capability.

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

  
Education 8,333,148
Telemedicine 806,593
Giggles Theater 375,374
Total Program Expenses: $9,515,115
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Governance

              

Chief Executive : Margaret Brady, Executive Director
Compensation*:
$92,538

Highest Paid Executive: John Riehl, President and COO
Compensation*: $110,976

Chair of the Board: Frank J. Brady
Chair's Profession / Business Affiliation: CEO, Medical Missions for Children

Board Size: 44

Paid Staff Size: 14

*2009 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,and Internet appeals.
Fund raising costs were 2% of related contributions. (Related contributions, which totaled $8,400,348, are donations received as a result of fund raising activities.)
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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 MMC's audited financial statements for the year ended December 31, 2009.

Source of Funds  
Satellite time 6,920,400
Services 909,520
Contributions and grants 570,428
Occupancy 297,829
Equipment and supplies 291,221
Other income 151,053
Medical library 121,675
Total Income $9,262,126


chart



Uses of Funds as a % of Total Expenses

Programs: 97%  Fund Raising: 1%  Administrative: 2% 

Total income   $9,262,126
  Program expenses $9,515,115
  Fund raising expenses 126,884
  Administrative expenses 169,402
 
Total expenses   $9,811,401
Expenses in Excess of Income   (549,275)
Beginning net assets   4,886,196
Ending net assets   4,336,921
Total liabilities   1,732,350
Total assets   $6,069,271


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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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