BBB Wise Giving Report for
Idol Gives Back Foundation

BBB Wise Giving Report issued August 2010
BBB Wise Giving Report expires August 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: Idol Gives Back Foundation
Address: c/o Katten Muchin Rosenman, LLP
2029 Century Park E, Suite 2600
  Los Angeles, CA 90067
Phone: 818-748-1134
Web Address: www.americanidol.com/idolgivesback
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 2008, Delaware
Affiliates: None
Stated Purpose: "to make grants for charitable, educational, literary or scientific purposes, or to foster amateur sports competition, or for the prevention of cruelty to children or animals."

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Evaluation Conclusions

              

Idol Gives Back Foundation (IGBF) does not meet the following 6 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.

IGBF 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.

In response to this finding, the organization stated:

"IGBF has not reviewed the performance of the chief executive officer at least once every two years because the performance of the chief executive officer is not a relevant measure for the performance of the charity in this case.  The chief executive officer is not compensated for his services and his work is an integral part of the work and focus of the rest of the board, which is to raise funds during a biennial TV show special called "Idol Gives Back" and to distribute the raised funds in the form of grants to several selected charities."

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

IGBF does not meet this Standard because:

  • The organization has three voting members of the board.

In response to this finding, the organization stated:

"IGBF has 3 voting members of the board because the charity was formed by the unique, collaborative, charitable vision of the three entertainment companies behind the TV show "American Idol" (19 Entertainment Limited, FreMantleMedia North America, Inc. and Fox Television Network) and because each company is represented by 1 board member."

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.

IGBF does not meet this Standard because:

  • The board of directors did not hold any meetings in the past fiscal year.

In response to this finding, the organization stated:

"IGBF, which was created in 2008, has operated on a biennial fundraising and grant awarding cycle.  This cycle is related to IGBF's main fundraising event on national TV, the Idol Gives Back special.  Based on this cycle, in years such as 2009 where there was no fundraising event on national TV and the fundraising and grant awarding activities are a continuation of the fundraising and grant awarding approved by the board in 2008, the board operates by a unanimous written consent and not by meetings."

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.

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

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

  • Did not identify total projected program service expenses.
  • Did not identify total projected fund raising expenses.
  • Did not identify total projected administrative expenses.

In response to this finding, the organization stated:

". . . IGBF's 2009 fundraising and program activities were, in large part, a continuation of its 2008 activities and no separate amounts were budgeted."

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.

IGBF does not meet this standard because:

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

In response to this finding, the organization stated:

"IGBF does not prepare an annual report because it already provides to its donors the information that would be included in an annual report on its Form 990 and on its website."

Idol Gives Back Foundation (IGBF) meets the remaining 14 Standards for Charity Accountability.
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Programs

              

IGBF makes grants to organizations in the U.S. and abroad in furtherance of its charitable purposes.

For the year ended December 31, 2008, IGBF's program expenses were:

  
Program services-grants 54,050,000
Total Program Expenses: $54,050,000
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Governance

              

Chief Executive : Simon Fuller, Chief Executive Officer of 19 Entertainment Limited
Compensation*:

Chair of the Board: Simon Fuller, President
Chair's Profession / Business Affiliation: Chief Executive Officer of 19 Entertainment Limited and a Director of CKX Inc.

Board Size: 3

Paid Staff Size: 0

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. IGBF reports that Mr. Fuller receives no compensation.
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Fund Raising

              

Method(s) Used:

Television, Internet appeals, mobile giving, and charitable auctions.
Fund raising costs were 6% of related contributions. (Related contributions, which totaled $58,739,756, 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 IGBF's audited financial statements for the year ended December 31, 2008.

Source of Funds  
Contributions 58,396,456
Interest income 740,407
Ticket revenue 343,300
Total Income $59,480,163


chart



Uses of Funds as a % of Total Expenses

Programs: 93%  Fund Raising: 6%  Administrative: 1% 

Total income   $59,480,163
  Program expenses $54,050,000
  Fund raising expenses 3,642,631
  Administrative expenses 706,031
 
Total expenses   $58,398,662
Income in Excess of Expenses   1,081,501
Beginning net assets  
Ending net assets   1,081,501
Total liabilities   31,000,000
Total assets   $32,081,501


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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.

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