Better Business Bureau Report for
Children's Hospital Foundation

Better Business Bureau Report issued November 2016
Better Business Bureau Report expires November 2018


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: Children's Hospital Foundation
Address: 234 E. Gray St., Suite 450
  Louisville, KY 40202
Phone: 502-629-8060
Web Address: https://nortonchildrens.com/foundation/
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Better Business Bureau Comments

Year, State Incorporated: 1962, Kentucky
Affiliates: None
Stated Purpose: The Children’s Hospital Foundation is the philanthropic arm of Norton Children’s Hospital and operates solely to raise funds and generate volunteer support for the services, programs, and equipment needs outlined in the Hospital’s strategic plan.

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Evaluation Conclusions

              

Children's Hospital Foundation does not meet the following 2 Standards for Charity Accountability.

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.

Financial statements do not include a detailed statement of functional expenses.

The Children’s Hospital Foundation was provided an opportunity to respond to this compliance issue, and responded as follows: “The Statement of Functional Expenses is only required by generally accepted counting principles (GAAP) for Not for Profit Organizations which are Voluntary Health and Welfare Organizations (such as the Red Cross or United Way.) This statement is not required by GAAP for The Children’s Hospital Foundation. Adding this statement would add complexity to our accounting and reporting processes and increase external audit procedures, which would increase Foundation expenses. It is in the best interest of the organization and our donors to avoid unnecessary operating costs.” 

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.

Children’s Hospital Foundation does not meet this Standard because the organization’s website does not include:

  •  Its most recent IRS Form 990
Children's Hospital Foundation meets the remaining 18 Standards for Charity Accountability.
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Programs

              

Norton Children’s Hospital is the only freestanding, full-service pediatric tertiary care facility in Kentucky dedicated exclusively to providing quality medical treatment to all children in need of care, regardless of their ability to pay. During 2015, over 170,000 children from throughout Kentucky and Southern Indiana received medical care at Norton Children's Hospital, which treats children from birth to age 18. The services and programs provided cover nearly every aspect of care and treatment for children – from the tiniest premature infant to the adolescent with traumatic head or spinal injuries – all in a child-friendly, family-centered atmosphere. Norton Children’s Hospital is the primary pediatric teaching facility for the University of Louisville Department of Pediatrics. Ensuring quality of care for both today and tomorrow, the hospital has a strong commitment to medical education and innovative research.

For the fiscal year ended December 31, 2015, Children's Hospital Foundation's program expenses were:

  
Capital projects 6,584,252
Programs 4,540,745
Financial assistance 219,537
Faculty support 64,094
Total Program Expenses: $11,408,628
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Governance

              

Chief Executive : Lynnie Meyer, Chief Development Officer
Compensation*: 

Chair of the Board: Cindi Shrader
Chair's Profession / Business Affiliation: Financial Advisor, MetLife

Board Size: 28

Paid Staff Size: 22

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Fund Raising

              

Method(s) Used:

Direct mail, invitations to fund raising events, print advertisements, television, radio, grant proposals, internet, planned giving arrangements
Fund raising costs were 20% of related contributions. (Related contributions, which totaled $11,241,679, 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 Children's Hospital Foundation's audited financial statements for the fiscal year ended December 31, 2015.

Ending net assets as reported below include $26,230,873 in unrestricted net assets , $35,674,963 in temporarily restricted net assets, and $21,193,189 in permanently restricted net assets.

Total assets as reported below include $77,060 invested in equipment, net.






Source of Funds  
Donations and gifts, net 9,970,447
Bequests 1,271,232
Transfers from affiliates 642,358
Other 460,395
Losses on investments -630,462
Change in beneficial interest in trusts held by others -711,598
Total Income $11,002,372


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Uses of Funds as a % of Total Expenses

Programs: 78%  Fund Raising: 15%  Administrative: 7% 

Total income $11,002,372
Program expenses $11,408,628
Fund raising expenses 2,237,866
Administrative expenses 1,004,802
Total expenses $14,651,296
Expenses in Excess of Income (3,648,924)
Beginning net assets 86,747,949
Ending net assets 83,099,025
Total liabilities 2,517,578
Total assets $85,616,603


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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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