Charity Review

Issued: February 2013 Expires: February 2015

CRU

Standards
Not Met
407-826-2000 100 Lake Hart Drive
Orlando, FL 32832
www.ccci.org

Conclusions


CRU (CRU) does not meet the following 2 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.

CRU does not meet this Standard because:

  • The organization's CEO also serves as board chair.

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.

CRU does not meet this Standard because:

  • 3 members out of the  8 member board of directors (38%) are paid staff. In addition, one of these members is the paid board chair.
In response, CCCI has stated that:
''Campus Crusade for Christ agrees with the spirit of Standard 4. At the same time, Campus Crusade is a religious organization and its missionary members are called, take vows and are commissioned members of its religious order. The ministry believes that it is equally important, therefore, for there to be appropriate representation by its missionary members on its Board of Directors. The Campus Crusade Board is normally composed of between ten and twelve members. Two of the Directors are missionary members of the organization, the President and the ministry’s co-founder. The President is the highest spiritual official of the organization. For that reason, he, also, serves as the Chairman of the Board. In keeping with the spirit and purpose of good corporate governance the rest of the Board members are outside Directors, who do not receive any compensation from the organization. The Treasurer is an outside Director. The Board maintains an Audit Committee composed entirely of outside Directors. The Audit Committee retains the outside financial audit firm, currently Ernst & Young, and oversees the annual outside audit. The Board, also, maintains a Finance Committee, composed only of outside Directors. The chairmen of the Audit Committee and Finance Committee do not serve on the other’s committee. The Treasurer is not a member of either Committee.''
CRU (CRU) meets the remaining 18 Standards for Charity Accountability.

Purpose

Year, State Incorporated: 1954, California

Also Known As: Campus Crusade for Christ

Affiliates: 1,350 affiliates and 1,300 chapters.

Stated Purpose: "to help fulfill the Great Commission in the power of the Holy Spirit by winning people to faith in Jesus Christ, building them in their faith and sending them to win and build others; and to help the Body of Christ do evangelism and discipleship."

Programs


CRU is involved in evangelism and discipleship which it conducts through different ministry techniques. These approaches include working with college students on college and university campuses, working with high school students, working with adults in their careers, providing assistance to churches in low income communities, working with athletes, providing poverty and disaster relief, offering programs to assist couples with their marriages and parenthood, and operating undergraduate and theological academic institutions. Arms of CRU are engaged in ministries around the world. The organization's ministries help the organization to facilitate its goal of changing lives through Jesus Christ. By using tools like JESUS, a film based on the Gospel of Luke, and The Four Spiritual Laws, a booklet explaining how to have a personal relationship with God, CRU reports that the organization and its partners have exposed people around the world to the Gospel of Jesus Christ.

For the fiscal year ended August 31, 2011, CRU's program expenses were:

  
International ministries 138,782,000
Campus 134,154,000
Community 104,814,000
Coverage 68,477,000
Total Program Expenses: $446,227,000

Governance & Staff


Chief Executive : Steven B. Douglass, President
Compensation*: 
$105,660

Highest Paid Executive: Josh McDowell, Ministry Director of Josh McDowell Ministries
Compensation*: $167,636

Chair of the Board: Stephen B. Douglass
Chair's Profession / Business Affiliation: President, CRU

Board Size: 8

Paid Staff Size: 7326

*2010 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Fund Raising


Method(s) Used:

Direct mail, telemarketing, special events, print advertisements, radio, grant proposals, Internet appeals, and planned giving.
Fund raising costs were 8% of related contributions. (Related contributions, which totaled $474,476,000, are donations received as a result of fund raising activities.)

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.

Financial


The following information is based on CRU's audited financial statements -consolidated with affiliates- for the fiscal year ended August 31, 2011.

Source of Funds  
Contributions 444,434,000
Gifts in-kind 30,042,000
Other 21,581,000
Conference registration 13,805,000
Literature and material sales 9,497,000
Total Income $519,359,000


chart



Uses of Funds as a % of Total Expenses

Programs: 86%  Fund Raising: 7%  Administrative: 7% 

Total income $519,359,000
Program expenses $446,227,000
Fund raising expenses 38,865,000
Administrative expenses 37,119,000
Total expenses $522,211,000
Expenses in Excess of Income (2,852,000)
Beginning net assets 94,873,000
Other Changes in Net Assets 31,425,000
Ending net assets 123,446,000
Total liabilities 111,033,000
Total assets $234,479,000

Note 1: In the above financial section, "other changes in net assets" represent a change in fair value of interest rate swap and pension-related changes other than net periodic pension cost.
Note 2: For the year ended August 31, 2011, CRU reported in-kind income of $32,618,000 for clothing and household goods ($12,354,000), food ($9,125,000), construction materials ($6,528,000), medical supplies ($3,759,000), toys and sports equipment ($433,000), books and publications ($258,000), and school and office supplies ($161,000).

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 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.

Close

Standard 1: Oversight of Operations and Staff

Description:

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.

CRU does not meet this Standard because:

Close

Standard 2: Number of Board Members

Description:

Soliciting organizations shall have a board of directors with a minimum of five voting members.

The organization meets this standard.

Close

Standard 3: Frequency and Attendance of Board Meetings

Description:

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.

The organization meets this standard.

Close

Standard 4: Compensated Board Members

Description:

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.

CRU does not meet this Standard because:

In response, CCCI has stated that:
''Campus Crusade for Christ agrees with the spirit of Standard 4. At the same time, Campus Crusade is a religious organization and its missionary members are called, take vows and are commissioned members of its religious order. The ministry believes that it is equally important, therefore, for there to be appropriate representation by its missionary members on its Board of Directors. The Campus Crusade Board is normally composed of between ten and twelve members. Two of the Directors are missionary members of the organization, the President and the ministry’s co-founder. The President is the highest spiritual official of the organization. For that reason, he, also, serves as the Chairman of the Board. In keeping with the spirit and purpose of good corporate governance the rest of the Board members are outside Directors, who do not receive any compensation from the organization. The Treasurer is an outside Director. The Board maintains an Audit Committee composed entirely of outside Directors. The Audit Committee retains the outside financial audit firm, currently Ernst & Young, and oversees the annual outside audit. The Board, also, maintains a Finance Committee, composed only of outside Directors. The chairmen of the Audit Committee and Finance Committee do not serve on the other’s committee. The Treasurer is not a member of either Committee.''

Close

Standard 5: Conflict of Interest

Description:

No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

The organization meets this standard.

Close

Standard 6: Board Policy on Effectiveness

Description:

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.

The organization meets this standard.

Close

Standard 7: Board Approval of Written Report on Effectiveness

Description:

Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

The organization meets this standard.

Close

Standard 8: Program Service Expense Ratio

Description:

Spend at least 65% of its total expenses on program activities.

The organization meets this standard.

Close

Standard 9: Fund Raising Expense Ratio

Description:

Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

The organization meets this standard.

Close

Standard 10: Ending Net Assets

Description:

Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

The organization meets this standard.

Close

Standard 11: Financial Statements

Description:

Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

The organization meets this standard.

Close

Standard 12: Detailed Functional Breakdown of Expenses

Description:

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.

The organization meets this standard.

Close

Standard 13: Accuracy of Expenses in Financial Statements

Description:

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.

The organization meets this standard.

Close

Standard 14: Budget

Description:

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

The organization meets this standard.

Close

Standard 15: Misleading Appeals

Description:

Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

The organization meets this standard.

Close

Standard 16: Annual Report

Description:

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.

The organization meets this standard.

Close

Standard 17: Web Site Disclosures

Description:

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.

The organization meets this standard.

Close

Standard 18: Privacy for Written Appeals & Internet Privacy

Description:

Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

The organization meets this standard.

Close

Standard 19: Cause Related Marketing

Description:

Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

The organization meets this standard.

Close

Standard 20: Complaints

Description:

Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

The organization meets this standard.

×