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.
VVA 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.
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.
VVA does not meet this Standard because:
- The chair of the board is compensated directly.
- The treasurer of the board is also compensated directly.
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.
VVA does not meet this Standard because:
- It has not completed an organizational effectiveness assessment in the past 2 years.
Standard 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.
VVA does not meet this Standard because:
- According to the its audited financial statements for the fiscal year ended February 28, 2009, the organization spent $5,129,994 or 25% of its total expenses ($20,767,830) on program service activities.
Standard 9: Fund Raising Expense Ratio - 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.
VVA does not meet this Standard because:
- According to its audited financial statements for the fiscal year ended February 28, 2009, the organization's fund raising costs ($14,430,184) were 75% of related contributions, which totaled $19,258,434.
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.
VVA does not meet this Standard because
- The Alliance believes that the costs associated with the recycling program should be considered fund raising expenses rather than netted out of recycling program revenue because VVA makes a profit on the recycled items sold.
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.
VVA 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 expenses for each major program (National veterans' programs, Communications and public affairs, Government relations, Veterans' benefits program, and Veterans' collectibles).
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.
VVA does not meet this Standard because the organization's website, www.vva.org, does not include all of recommended information for those charity websites that solicit for donations. Specifically, it does not include:
- 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.
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.
VVA does not meet this Standard because the privacy policy on this website, www.vva.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).
VVA does not meet this Standard because, in the past year the organization participated in promotions for the sale of consumer goods that indicate that the organization will benefit from these purchases. The promotions, however, did not specify:
- The actual or anticipated amount of the purchase price that will benefit the organization.