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 meet this Standard because the board of directors does not review the performance of the chief executive officer (CEO) at least once every two years and its board of directors did not receive a copy of the organization's latest available financial review.
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.
This organization does not meet this Standard because 2 members out of the 10 member board of directors (20 %) are related to the executive director.
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 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 8: Program Service Expense Ratio - Spend at least 65% of its total expenses on program activities.
This organization does not meet this Standard because its IRS Form 990 for the fiscal year ended December 31, 2006 claims that 100% of its expenses went to program services. The BBB questions this expense allocation.
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 $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.
This organization does not meet this Standard because it states it does not have financial statements that were reviewed by a certified public accountant (CPA).
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.
This organization does not meet this Standard because its IRS Form 990 for the fiscal year ended December 31, 2006 reports the organization had no fund raising expenses and no administrative 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 fundraising and administrative 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.
This organization does not meet this Standard because its annual report does not include its mission statement, a roster of the officers and members of the board of directors, or its end of year net assets.
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.
This organization does not meet this Standard because its website, http://www.slccnc.org, does not include all of the recommended information for those charity websites that solicit donations. Specifically, it does not include a full board roster or financial information. The website also does not provide electronic access to the organization’s most recent IRS Form 990.