Better Business Bureau Report for
Lighthouse for the Blind

Better Business Bureau Report issued August 2008
Better Business Bureau Report expires August 2010


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: Lighthouse for the Blind
Address: 10440 Trenton Ave
  St. Louis, MO 63132
Phone: 314-423-4333
Web Address: www.lhbindustries.com
Also known as:LHB Industries (dba)
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Better Business Bureau Comments

Formerly known as:Board of Industrtial Aid for the Blind
Industrial Aid for the Blind, Incorporated

Year, State Incorporated: 1933, Missouri
Affiliates: None
Stated Purpose: exists to assist individuals who are legally blind maintain dignity and independence by making available employment, education and support services.

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Evaluation Conclusions

              

Lighthouse for the Blind (LFB) does not meet the following 7 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.

The organization 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 organization does not meet this Standard because it did not produce a written report outlining the results of the effectiveness assessment.

Standard 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.

The organization does not meet this Standard because according to the organization's IRS Form 990 for the fiscal year ended December 31, 2007, the organization spent $1,032,324 or 32% of its total expenses ($3,240,103) on program service activities.

Standard 10: Ending Net Assets - 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.

This organization does not meet this Standard because according to its budget for the fiscal year ending December 31, 2008, the organization's total unrestricted net assets were $45,626,685, or 14 times the charity's total expenses of $3,337,665.

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.

The organization's audited financial statements do no include a detailed functional breakdown of expenses. 

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.

This organization does not meet this Standard because the budget provided by the organization does not clearly identify the projected amounts to be spent on program service 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.

The organization does not meet this Standard because it states it does not have an annual report covering activities conducted in the past year.

In addition, the St. Louis Better Business Bureau requested but did not receive complete information on the organization’s donor privacy and is unable to verify the organization's compliance with the following 2 Standards for Charity Accountability: 17 and 18.
Lighthouse for the Blind (LFB) meets the remaining 11 Standards for Charity Accountability.
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Programs

              

Originally founded in 1933 as the Industrial Aid for the Blind, The Lighthouse story begins with a prominent Saint Louisian. Mary E. Ryder, believed there was a need for a place where people who were blind and legally blind could count on developing new and productive skills that could earn them independence and a steady income. From this vision, the Lighthouse was created. It provides employment opportunities for people who are blind in our two manufacturing facilities and at our Scott Air Force Base switchboard operation. At its Trenton headquarters, they assemble quality first aid kits, medical kits and catheters. Our Berkeley facility primarily packages aerosol and liquid cleaning products as well as aerosol and liquid paints. In 2002, the Lighthouse received a contract to run the switchboard operation at Scott Air Force Base. The switchboard operates 24 hours a day, 365 days a year and faciltitaes over 40,000 calls per month. In January of 2005, it launched the first of its See the Future programs. This program includes a Continuing Education program which provides financial awards to blind youth in the form of adaptive equipment, college tuition and/or training as well as a variety of scholarship programs to various camp throughout the United States.

For the fiscal year ended December 31, 2007, LFB's program expenses were:

  
Employment & vocational training for the visually impaired 1,032,324
Total Program Expenses: $1,032,324
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Governance

              

Chief Executive : John W Thompson, President
Compensation*: 
$290,747

Chair of the Board: Frank Tricomi
Chair's Profession / Business Affiliation: COO, Conley & Associates

Board Size: 14

Paid Staff Size: 106

*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, internet
Fund raising costs were 1% of related contributions. (Related contributions, which totaled $6,941,403, are donations received as a result of fund raising activities.)
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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 LFB's IRS Form 990 for the fiscal year ended December 31, 2007.

Source of Funds  
Gross profit or loss on sale of inventory 6,639,947
Gain or loss on investments 1,322,507
Interest on savings and temporary cash investments 712,580
Dividends & interest from securities 314,937
Direct public support 301,456
Other revenue 1,486
Total Income $9,292,913


chart



Uses of Funds as a % of Total Expenses

Programs: 32%  Fund Raising: 3%  Administrative: 65% 

Total income $9,292,913
Program expenses $1,032,324
Fund raising expenses 103,736
Administrative expenses 2,104,043
Total expenses $3,240,103
Income in Excess of Expenses 6,052,810
Beginning net assets 40,531,722
Other Changes in Net Assets (957,847)
Ending net assets 45,626,685
Total liabilities 1,075,970
Total assets $46,702,655


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