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.
C4C does not meet this Standard because:
- The chair of the board is compensated.
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.
C4C does not meet this Standard because, in the organization's financial statements, the detailed statement of functional expenses:
- Did not include a functional breakdown of expenses by natural classification (e.g., salaries, travel, postage, etc.) that indicates what portion of expenses was allocated to fundraising activities.
Standard 13: Accuracy of Expenses in Financial Statements - 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.
C4C does not meet this Standard because:
- The organization did not recognize any fundraising expenses for the donated vehicles it received and instead expensed the amount as program services.
- The Alliance is of the opinion that the expenses associated with the charity marketing for, inspecting/repairing, transporting, and auctioning off donated cars are fundraising in nature.
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.
C4C does not meet this standard because:
- Although requested, the organization did not provide a copy of its annual report covering activities conducted in the past fiscal 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.
C4C does not meet this Standard because the organization's website, www.cars4causes.net, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:
- A roster of the board of directors.
- Total income.
- Total program expenses.
- Total fund raising expenses.
- Total administrative expenses.
- End of year net assets.
- Electronic access to the organization’s most recent IRS Form 990.