Better Business Bureau Report for
Arthritis Foundation

Better Business Bureau Report issued January 2010
Better Business Bureau Report expires January 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: Arthritis Foundation
Address: 2201 W. Broad St.
Suite 100
  Richmond, VA 23220
Phone: 804-359-1700
Web Address: www.arthritis.org
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Better Business Bureau Comments

Year, State Incorporated: 1948, Georgia
Affiliates: None
Stated Purpose: Improve lives through leadership in the prevention, control, and cure of arthritis and related diseases.

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Evaluation Conclusions

              

Arthritis Foundation does not meet the following 5 Standards for Charity Accountability.

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.

Arthritis Foundation does not meet this Standard because:

  • Its effectiveness assessment policy does not specify that this assessment will take place at least once every two years.

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.

Arthritis Foundation does not meet this Standard because:

  • It did not produce a written report outlining the results of its most recent effectiveness assessment.

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.

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.

Arthritis Foundation 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.
  • Included total projected program service expenses, however, did not break these expenses down by major program category.

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.

Arthritis Foundation does not meet this standard because the most recent annual report did not include:

  • Total end of year net assets.
Arthritis Foundation meets the remaining 15 Standards for Charity Accountability.
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Programs

              

The Arthritis Foundation LIfe Improvement Programs (Exercise, Aquatics, and Tai Chi)are exercise programs designed specifically for people with arthritis. The Arthritis Foundation Self-Help Program helps people learn the skills they need to build their own self-management program.

For the fiscal year ended December 31, 2009, Arthritis Foundation's program expenses were:

  
Public Health Education 648,741
Patient & Community Services 513,348
Research 332,951
Professional Education 99,129
Total Program Expenses: $1,594,169
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Governance

              

Chief Executive : Catherine Ann Magnant, President
Compensation*:
$118,262

Chair of the Board: Eric Schmude
Chair's Profession / Business Affiliation: Pitney Bowes

Board Size: 18

Paid Staff Size: 8

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

direct mail, invitations to fund raising events, print advertisements, radio, planned giving arrangements, membership
Fund raising costs were 10% of related contributions. (Related contributions, which totaled $1,988,779, are donations received as a result of fund raising activities.)
Arthritis Foundation incurred joint costs of $110,759 for informational materials and activities that included fund raising materials. Of those costs $71,993 was allocated to program expenses, $38,766 was allocated to fund raising expenses, and $ was allocated to administrative expenses.
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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 Arthritis Foundation's audited financial statements for the fiscal year ended December 31, 2009.

Source of Funds  
Direct Public Support 1,930,480
Indirect Public Support 58,299
Other Revenue -69,294
Total Income $1,919,485


chart



Uses of Funds as a % of Total Expenses

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

Total income   $1,919,485
  Program expenses $1,594,169
  Fund raising expenses 197,741
  Administrative expenses 133,754
 
Total expenses   $1,925,664
Expenses in Excess of Income   (6,179)
Beginning net assets   1,510,189
Ending net assets   1,504,010
Total liabilities   219,527
Total assets   $1,723,537


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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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