BBB Wise Giving Report for
National Association for the Exchange of Industrial Resources

BBB Wise Giving Report issued December 2010
BBB Wise Giving Report expires December 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: National Association for the Exchange of Industrial Resources
Address: 560 McClure Street
  Galesburg, IL 61401
Phone: 309-343-0704
800-562-0955
Web Address: www.naeir.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1977, District of Columbia
Affiliates: None
Stated Purpose: "to obtain, catalog and store donated inventory and redistribute such property to its members."

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Evaluation Conclusions

               

National Association for the Exchange of Industrial Resources (NAEIR) does not meet the following 2 Standards for Charity Accountability.

Standard 2: Number of Board Members - Soliciting organizations shall have a board of directors with a minimum of five voting members.

NAEIR does not meet this Standard because:

  • The organization has three (3) voting members of the board.

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.

NAEIR does not meet this Standard because:

  • 100% of the three (3) member board of directors, including the chairman and treasurer, are directly compensated. 
National Association for the Exchange of Industrial Resources (NAEIR) meets the remaining 18 Standards for Charity Accountability.
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Programs

               

NAEIR reports receiving over $100,000,000 annually in merchandise donations. The merchandise is sorted, catalogued and offered to the organization's membership, which consists of schools, churches and 501(c)(3) nonprofit organizations. NAEIR has several membership options and merchandise distribution programs. After paying a membership fee to participate in the organization, the only fees members incur are handling charges and shipping charges to get the products from NAEIR's facility to the member organization's location.

For the fiscal year ended June 30, 2010, NAEIR's program expenses were:

  
Product distribution program 132,067,251
Total Program Expenses: $132,067,251
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Governance

               

Chief Executive : Gary C. Smith, President/Chief Executive Officer
Compensation*:
 $436,235

Chair of the Board: Laverne K. Smith
Chair's Profession / Business Affiliation: Retired from NAEIR

Board Size: 3

Paid Staff Size: 100

*July 1, 2009 - June 30, 2010 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, telemarketing, Internet appeals, and membership appeals.
Fund raising costs were 2% of related contributions. (Related contributions, which totaled $132,048,130, 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 NAEIR's audited financial statements for the fiscal year ended June 30, 2010.

Source of Funds  
Product inventory contribution 130,164,635
Transportation and handling fees 8,171,964
Membership dues and fees 1,883,495
Reimbursement for expenses 96,000
Miscellaneous 77,151
Gain on investments 77,113
Interest income 71,374
Total Income $140,541,732


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Uses of Funds as a % of Total Expenses

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

Total income   $140,541,732
  Program expenses $132,067,251
  Fund raising expenses 2,988,610
  Administrative expenses 1,728,046
 
Total expenses   $136,783,907
Income in Excess of Expenses   3,757,825
Beginning net assets   203,166,288
Ending net assets   206,924,113
Total liabilities   3,882,282
Total assets   $210,806,395

Note: According to NAEIR, the organization received $120,084,033 in in-kind contributions during its fiscal year ending June 30, 2010, including maintenance items ($22,970,622), computer/office ($17,675,493), paper goods ($13,813,445), personal care ($12,830,316), arts and crafts ($12,764,477), clothing ($9,629,850), educational ($8,094,886), miscellaneous ($7,884,740), gifts/collectibles ($5,007,828), children's items ($4,025,976), books ($2,945,161), furniture ($1,522,528), and promotional goods ($918,711).

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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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