BBB Wise Giving Report for
American Heart Association

BBB Wise Giving Report issued November 2008
BBB Wise Giving Report expires November 2010


This BBB Accredited charity meets all 20 Standards for Charity Accountability and is a Seal Holder. Find out more...


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Charity Contact Information

Name: American Heart Association
Address: 7272 Greenville Avenue
  Dallas, TX 75231
Phone: 214-373-6300
Web Address: www.americanheart.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1924, New York
Affiliates: 8 chapters

Stated Purpose: "to build healthier lives, free of cardiovascular diseases and stroke."

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Evaluation Conclusions

              

American Heart Association (AHA) meets the 20Standards for Charity Accountability.
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Programs

              

AHA funds research at both the national and regional levels. AHA publishes brochures and other resource materials on subjects like nutrition and the dangers of smoking. Its food certification program also helps consumers in identifying items low in saturated fat and cholesterol. Some ($85,908,502 or 32%) of AHA's public health education efforts are conducted in conjunction with fund raising. AHA funds scientific studies to obtain knowledge in the prevention, detection, and treatment of cardiovascular diseases. In addition to publishing five medical journals, AHA holds professional development seminars and meetings to keep physicians, nurses and healthcare professionals versed in the latest ways to prevent or treat problems involving stroke, heart attack and other cardiovascular diseases. AHA also offers training in emergency cardiac care. AHA also monitors and promotes legislation at both the federal and state levels on policy issues to bring down rates for heart disease and stroke.

For the fiscal year ended June 30, 2007, AHA's program expenses were:

  
Public health education 271,530,685
Research 150,665,604
Professional education and training 87,916,834
Community services 43,888,390
Total Program Expenses: $554,001,513
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Governance

              

Chief Executive : Nancy Brown, Executive Director and CEO
Compensation*:

Chair of the Board: David A. Josserand
Chair's Profession / Business Affiliation: Executive Vice President and COO, The Dalton Agency

Board Size: 22

Paid Staff Size: 3393

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. Prior to the CEO's appoint on January 1, 2009, Mr. Cass Wheeler was the CEO of AHA and was compensated $785,465 for the past year. Included in that amount is a lump sum supplemental retirement makeup payment approved by the board and a lump sum payment for retirement for the AHA retirement restoration plan.
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Fund Raising

              

Method(s) Used:

Direct mail, telemarketing, special events, print advertisements, television, radio, grant proposals, Internet appeals, door to door, planned giving, and cause-related marketing
Fund raising costs were 15% of related contributions. (Related contributions, which totaled $601,923,695, are donations received as a result of fund raising activities.)
AHA incurred joint costs of $134,379,447 for informational materials and activities that included fund raising materials. Of those costs, $87,454,101 was allocated to program expenses, $41,421,322 was allocated to fund raising expenses, and $5,504,024 was allocated to administrative expenses.
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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 AHA's audited financial statements for the fiscal year ended June 30, 2007.

Source of Funds  
Special events 269,390,216
Contributions 159,270,480
Bequests 87,614,967
Contributed services and materials 68,904,143
Sales of educational materials 66,697,435
Realized and unrealized gains on investment transactions, net 52,488,489
Program fees 20,448,094
Interest and dividends, net 18,951,081
Royalty income 15,287,514
Unrealized gains on beneficial interest in perpetual trusts 14,458,607
Federated and nonfederated fundraising organizations 14,042,370
Perpetual trusts revenue 6,680,168
Miscellaneous revenue 2,236,832
Gains on disposal of fixed assets 2,213,284
Membership dues 2,072,301
Other split-interest agreements 877,887
Charitable gifts annuities 593,148
Fees and grants 36,070
Change in value of split-interest agreements -2,903,473
Total Income $799,359,613


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Uses of Funds as a % of Total Expenses

Programs: 80%  Fund Raising: 13%  Administrative: 7% 

Total income   $799,359,613
  Program expenses $554,001,513
  Fund raising expenses 88,218,143
  Administrative expenses 49,167,728
 
Total expenses   $691,387,384
Income in Excess of Expenses   107,972,229
Beginning net assets   711,700,066
Other Changes in Net Assets (4,691,487)
Ending net assets   814,980,808
Total liabilities   396,943,172
Total assets   $1,211,923,980

Note 1: According to AHA's audited financial statements for the year ended June 30, 2007, the organization received $68,904,143 in in-kind donations including national advertising/PSAs ($62,195,643), research peer review ($4,346,335), licensing fees ($945,000), fees/agency consultation ($533,333), miscellaneous consulting ($460,097), local advertising ($241,747), and donated materials for local programs ($181,988).

Note 2: In the above financial summary, "other changes in net assets" valued at ($4,691,487) represents the effect of adoption of FASB statement No.158.

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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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