Better Business Bureau Report for
Learning Tree Day Nursery

Better Business Bureau Report issued September 2005
Better Business Bureau Report expires September 2007


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: Learning Tree Day Nursery
Address: 4430 Labadie Avenue
  Saint Louis , MO 63115
Phone: 314-534-0699
Web Address:
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Better Business Bureau Comments

Year, State Incorporated:
Affiliates:
Stated Purpose:

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Evaluation Conclusions

              

Learning Tree Day Nursery (LTDN) does not meet the following 9 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.

This organization does not have an audit completed, does not have a CEO performance review policy at least every two years, and does not have a conflict of interest policy. 

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.

Over 27% of this organization's board of directors are compensated. 

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.

This organization does not have a board policy on assessing organizational performance and effectiveness. 

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.

This organization does not have a board policy on assessing organizational performance and effectiveness. 

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.

This organization has no fundraising expenses listed in its IRS Form 990 (tax form) but holds special events for the purpose of raising funds. 

Standard 11: Financial Statements - Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $250,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $250,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $100,000, an internally produced, complete financial statement is sufficient to meet this standard.

This organization does not have audited financial statements prepared according to Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS). 

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.

This organization does not have a functional breakdown of expenses in its internally produced financial statements.

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.

The organization's IRS Form 990 for the fiscal year ended December 31, 2004 reports the organization had no fund raising expenses; however, this organization did hold special events for fundraising purposes. 

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.

This organization did not send the BBB an annual report. 

Learning Tree Day Nursery (LTDN) meets the remaining 11 Standards for Charity Accountability.
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Programs

              

Day care center

For the fiscal year ended December 31, 2004, LTDN's program expenses were:

  
Day Care 576,976
Total Program Expenses: $576,976
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Governance

              

Chief Executive : Shirley Black , Co-Executive Director
Compensation*:

Chair of the Board: Thomas Mines
Chair's Profession / Business Affiliation: President, Thomas Mines & Associates

Board Size: 11

Paid Staff Size: 19

*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
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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 LTDN's IRS Form 990 for the fiscal year ended December 31, 2004.

Source of Funds  
Program service revenue 562,132
Direct public support 87,813
Special events (net) 4,706
Net rental income 3,700
Other revenue 2,834
Interest on savings and temporary cash investments 56
Total Income $661,241


chart



Uses of Funds as a % of Total Expenses

Programs: 91%    Administrative: 9% 

Total income   $661,241
  Program expenses $576,976
  Fund raising expenses
  Administrative expenses 59,770
 
Total expenses   $636,746
Income in Excess of Expenses   24,495
Beginning net assets   109,585
Ending net assets   134,080
Total liabilities   116,411
Total assets   $250,491


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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.

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