BBB Wise Giving Report for
VFW Foundation

BBB Wise Giving Report issued May 2012
BBB Wise Giving Report expires April 2013


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: VFW Foundation
Address: 406 West 34th Street Suite 514
  Kansas City, MO 64111
Phone: 816-968-1128
816-968-1128
Web Address: www.vfwfoundation.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1996, Missouri
Affiliates: Veterans of Foreign Wars of the United States
Stated Purpose: "to support programs to increase awareness of the sacrifices of America's veterans, to promote citizenship education, volunteerism and positive youth programs and to facilitate aid for veterans and their families in need of medical, rehabilitative, educational and employment services."

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Evaluation Conclusions

              

VFW Foundation (The Foundation) does not meet the following 6 Standards for Charity Accountability.

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.

The Foundation does not meet this Standard because:

  • The board of directors held two meetings in the past fiscal year.

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.

The Foundation 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 7: Board Approval of Written Report on Effectiveness - 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 Foundation does not meet this Standard because:

  • Although an effectiveness assessment has been conducted, it has not taken place within the past two years.

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.

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

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

Standard 18: Privacy for Written Appeals & Internet Privacy - 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 Foundation does not meet this Standard because the privacy policy on this website, www.vfwfoundation.org does not indicate:

  • What security measures are in place to protect personal information that is collected.

Standard 19: Cause Related Marketing - 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 Foundation does not meet this Standard because, in the past year the organization participated in promotion(s) for the sale of consumer good(s) or service(s) that indicate(s) that the organization will benefit from these purchase(s). The promotion(s), however, did not specify:

  • The actual or anticipated amount of the purchase price that will benefit the organization.
In addition, the BBB Wise Giving Alliance requested but did not receive complete information on the organization’s governance and oversight and solicitation materials and is unable to verify the organization's compliance with the following 2 Standards for Charity Accountability: 4 and 15.
VFW Foundation (The Foundation) meets the remaining 12 Standards for Charity Accountability.
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Programs

              

The Foundation works to improve the lives of veterans and military service personnel, their families and their communities. The Foundation assists military families in need of financial assistance. Assistance includes help with mortgage, car loans, utilities and other payments. The Foundation provides grants through community service and public awareness programs.

For the fiscal year ended August 31, 2010, The Foundation's program expenses were:

  
Veterans service activities 3,312,746
Community service and public awareness 393,737
Total Program Expenses: $3,706,483
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Governance

              

Chief Executive : John G. Lowe, Acting Director
Compensation*:
Not available

Chair of the Board: Richard Eubank
Chair's Profession / Business Affiliation: Commander-In-Chief, Veterans of Foreign Wars

Board Size: 12

Paid Staff Size: 7

*September 1, 2009 - August 31, 2010 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. The Foundation reports that former Executive Director Daniel M. Shea received $89,330 in total compensation.
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Fund Raising

              

Method(s) Used:

Special events, print advertisements, television, radio, grant proposals, Internet appeals, planned giving, and cause-related marketing.
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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 The Foundation's audited financial statements for the fiscal year ended August 31, 2010.

Source of Funds  
Cash contributions and gifts 2,392,377
Contributions of goods for distribution 1,711,497
Unrealized net investment gains 37,556
Interest, dividends, net realized gains 21,779
Total Income $4,163,209


chart



Uses of Funds as a % of Total Expenses

Programs: 83%  Fund Raising: 10%  Administrative: 7% 

Total income   $4,163,209
  Program expenses $3,706,483
  Fund raising expenses 467,139
  Administrative expenses 290,764
 
Total expenses   $4,464,386
Expenses in Excess of Income   (301,177)
Beginning net assets   2,249,337
Ending net assets   1,948,160
Total liabilities   162,080
Total assets   $2,110,240

Note: According to audited financial statements for the fiscal year ended August 31, 2010, the Foundation received $1,641,267 of in-kind donations of stationary products, greeting cards, and office supplies.

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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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