Charity Review

Issued: June 2014 Expires: June 2016

Human Life International

Standards
Not Met
800-549-5433 4 Family Life Lane
Front Royal, VA 22630
www.hli.org

Conclusions


Human Life International (HLI) does not meet the following 5 Standards for Charity Accountability.

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.

HLI 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 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.

HLI does not meet this Standard because, in the organization's audited financial statements for the fiscal year ended September 30, 2013, 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 14: Budget - Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

HLI does not meet this Standard because, when the organization provided budget information, it indicated that the 2014 budget:

  • Included total projected program service expenses, however, did not break these expenses down by major program category.

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.

HLI does not meet this Standard because its annual report covering activities in 2013 did not include:

  • Total expenses for each program in the same categories that appear in the organization’s audited financial financial statements for the fiscal year ended in September 30, 2013.

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.

HLI does not meet this Standard because:

  • Its website, www.hli.org, does not provide access to 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.
Human Life International (HLI) meets the remaining 14 Standards for Charity Accountability.

Purpose

Year, State Incorporated: 1981, District of Columbia

Affiliates: HLI Endowment Inc.

Stated Purpose: “to respond to the calling of Jesus Christ by building a culture of life and of love around the world through education, outreach, advocacy, and service.”

Programs


HLI is a pro-life advocacy organization that imparts and creates awareness about the teachings of the Catholic Church on issues related to life, marriage, and family. The organization carries out outreach and advocacy efforts across the world, addressing topics such as abortion, contraception, chastity, marriage, and family in accordance with the teachings of the Catholic Church. HLI also trains, organizes, and equips pro-life leaders in various countries across the five continents. Most of the organization’s ground work is carried out by its satellite offices. The activities of these centers include setting up crisis pregnancy centers, teaching young couples Natural Family Planning, training seminarians to be pro-life priests, equipping counselors to advise families in crisis, educating civic leaders on pro-life issues, and hosting pro-life and pro-family radio and television programs. Some ($258,367 or 9.3%) of HLI’s program expenses were carried out in conjunction with fundraising appeals.

For the fiscal year ended September 30, 2013, HLI's program expenses were:

  
Educational programs/international 2,046,058
Publications and communications 691,795
Conventions 35,795
Total Program Expenses: $2,773,648

Governance & Staff


Chief Executive : Father Shenan Boquet, President
Compensation*: 
$62,069

Highest Paid Executive: John Martin,Vicepresident for Operations
Compensation*: $79,251

Chair of the Board: Patricia P. Brainbridge
Chair's Profession / Business Affiliation: Executive Director, Life Decisions International

Board Size: 9

Paid Staff Size: 26

*2012 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Fund Raising


Method(s) Used:

Direct mail, print advertisements, grant proposals, Internet appeals, planned giving, and membership appeals.
Fund raising costs were 12% of related contributions. (Related contributions, which totaled $3,633,250, are donations received as a result of fund raising activities.)
HLI incurred joint costs of $258,367 for informational materials and activities that included fund raising materials. Of those costs $218,390 was allocated to program expenses, and $39,997 was allocated to fund raising expenses.

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.

Financial


The following information is based on HLI's audited financial statements - consolidated - for the fiscal year ended September 30, 2013.

Source of Funds  
Contributions 3,528,766
Other income 104,484
Investment income 82,250
Publications 39,948
Total Income $3,755,448


chart



Uses of Funds as a % of Total Expenses

Programs: 79%  Fund Raising: 12%  Administrative: 4%  Other Expenses: 5%

Total income $3,755,448
Program expenses $2,773,648
Fund raising expenses 440,048
Administrative expenses 127,835
Other Expenses 188,051
Total expenses $3,529,582
Income in Excess of Expenses 225,866
Beginning net assets 4,474,266
Ending net assets 4,700,132
Total liabilities 956,200
Total assets $5,656,332

Note: As noted in the above financial summary, HLI incurred other expenses of $188,051 during the fiscal year ended on September 30, 2013. These expenses correspond to building operations.

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 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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Standard 1: Oversight of Operations and Staff

Description:

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 organization meets this standard.

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Standard 2: Number of Board Members

Description:

Soliciting organizations shall have a board of directors with a minimum of five voting members.

The organization meets this standard.

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Standard 3: Frequency and Attendance of Board Meetings

Description:

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.

The organization meets this standard.

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Standard 4: Compensated Board Members

Description:

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.

The organization meets this standard.

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Standard 5: Conflict of Interest

Description:

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.

The organization meets this standard.

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Standard 6: Board Policy on Effectiveness

Description:

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.

HLI does not meet this Standard because:

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Standard 7: Board Approval of Written Report on Effectiveness

Description:

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 organization meets this standard.

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Standard 8: Program Service Expense Ratio

Description:

Spend at least 65% of its total expenses on program activities.

The organization meets this standard.

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Standard 9: Fund Raising Expense Ratio

Description:

Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

The organization meets this standard.

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Standard 10: Ending Net Assets

Description:

Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

The organization meets this standard.

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Standard 11: Financial Statements

Description:

Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

The organization meets this standard.

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Standard 12: Detailed Functional Breakdown of Expenses

Description:

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.

HLI does not meet this Standard because, in the organization's audited financial statements for the fiscal year ended September 30, 2013, the detailed functional breakdown of expenses:

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Standard 13: Accuracy of Expenses in Financial Statements

Description:

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.

The BBB is unable to verify if this organization meets this standard.

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Standard 14: Budget

Description:

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

HLI does not meet this Standard because, when the organization provided budget information, it indicated that the 2014 budget:

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Standard 15: Misleading Appeals

Description:

Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

The organization meets this standard.

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Standard 16: Annual Report

Description:

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.

HLI does not meet this Standard because its annual report covering activities in 2013 did not include:

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Standard 17: Web Site Disclosures

Description:

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 organization meets this standard.

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Standard 18: Privacy for Written Appeals & Internet Privacy

Description:

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.

HLI does not meet this Standard because:

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Standard 19: Cause Related Marketing

Description:

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 organization meets this standard.

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Standard 20: Complaints

Description:

Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

The organization meets this standard.

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