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.
- CBN does not meet this Standard because according to its IRS Form 990 for the fiscal year ended March 31, 2007, at least five of its board members were directly or indirectly compensated. In addition, the organization does not meet this Standard since the paid chief executive officer (CEO) also serves as the chair of the board.
Standard 11: Financial Statements - Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $250,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $250,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $100,000, an internally produced, complete financial statement is sufficient to meet this standard.
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CBN does not meet this Standard because the financial statements for the fiscal year ended March 31, 2007 indicate that the audit was not completed in compliance with generally accepted accounting principles. According to the Independent Auditors’ Report, “…the Ministry does not have access to records to support the fair value of its interest in a charitable trust, or the related changes in fair value. U.S. generally accepted accounting principles require interests in charitable trusts to be reported at fair value. We were unable to apply audit procedures to the stated fair value of the interest in charitable trust of $67,297,000 as of March 31, 2007 and 2006, respectively.”
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.
- CBN does not meet this Standard because its financial statements did not include a detailed functional breakdown of expenses by natural classification (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities.
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.
- CBN does not meet this Standard because CBN has not responded to a request from the Alliance for a copy of a current annual report.
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.
- CBN does not meet this Standard because its website, www.cbn.com, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include a board roster. The website also does not provide electronic access to the organization’s most recent IRS Form 990.