Charity Review

Issued: December 2016 Expires: December 2018

Charity Seal Holder

Children Inc.

Meets Standards
 
(859) 431-2075 333 Madison Avenue, Second Floor, Covington KY 41011 www.childreninc.org
  1. Conclusions
  2. Purpose
  3. Programs
  4. Governance & Staff
  5. Fund Raising
  6. Tax Status
  7. Financial
  8. BBB Comment
Conclusions

Children Inc. meets the 20 Standards for Charity Accountability.

Purpose

[To] advance the success of young children by partnering with families, professionals and the community through exemplary services, training, research and advocacy.

Incorporated: 1977 in KY

Programs

Children, Inc., offers programs and centers for preschool age children. The credentialed teachers work to ensure school readiness through curriculum that is aligned with the Kentucky Department of Education’s Early Childhood Standards. The organization also offers free annual vision and hearing screenings, a dental health program, and USDA Food Program-approved meals and snacks. For children in kindergarten through age 11, Children, Inc., offers school-aged services during out-of-school time. The organization offers Before- and After-School Care, as well as interim care for school recesses. Through the summer, care is available for school-aged children, and includes literacy and language curriculum, health and fitness education, service learning projects, and time to socialize. According to the organization, in 2015, 767 children were enrolled in Children, Inc.’s, early childhood centers, and 1019 students were enrolled in before- and after-school care programs. 

Children, Inc., offers a network of family child care homes throughout Northern Kentucky. Each home agrees to abide by the organization’s standards of care and allow for smaller ratios of children to provider. The Young Families Program offers home visits to families, prenatally through age three. The goal of this program is to ensure a healthy pregnancy, encourage positive parent-child interactions, increase child health indicators, ensure children are on target developmentally, and assist families to become self-sufficient. 

Children, Inc., offers Service Learning Experiences to connect community service experiences with academic learning, personal growth, and civic responsibility. This program unites classroom curriculum with identified community issues and needs and is an opportunity for students to learn skills through project development, implementation, and reflection. Growing Sound offers training sessions to provide teachers with an understanding of research on child development and arm them with tools to implement in the classroom. According to the organization, in 2015, over 37,000 students in the region participated in service learning projects lead by Children, Inc.

Governance & Staff

Board Chair: Mr. Mark Cosimi Business Affiliation: Ethicon Endo-Surgery

CEO: Mr. Rick Hulefeld, Executive Director

Board Size: 18

Staff: 250

Fund Raising
Method(s) used: Direct Mail Appeals Invitations to Fundraising Events Print Advertisements (Newspapers, Magazines, etc.) Radio Appeals Grant Proposals Internet Appeals Planned Giving Arrangements Cause-Related Marketing Appeals via Social Media (Facebook, etc.)

% of Related Contributions on Fundraising: 7.86%

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.

Financial

The following information is based on Children Inc. Consolidated Audited Financial Statements for the fiscal year ending Thursday, December 31, 2015.

Source of Funds
Department of Health and Human Services $1,428,831
U.S. Department of Agriculture $416,714
United Way contracts $1,132,000
Contributions $72,796
Fundraising $126,261
Program service fees $3,824,914
Other income $700,800
Total Income: $7,702,316
 
Fusion Chart
 
Program Expenses: $7,425,242
Fundraising Expenses: $104,643
Administrative Expenses: $1,181,840
Total Expenses: $8,711,725
 
Income in Excess of Expenses: ($1,009,409)
 
Beginning Net Assets: $3,645,907
Ending Net Assets: $3,653,907
Total Liabilities: $1,116,699
Total Assets: $7,182,762

BBB Comment

BBB Accredited Charity Seal Holder since 04/02/2008.

BBB has determined that in addition to meeting BBB's 20 Standards for Charity Accountability, Children, Inc. adheres to the BBB Code of Business Practices, which includes a commitment to make a good faith effort to resolve any complaints.  Charities that display the BBB Accredited Charity Seal pay a fee for review / monitoring and for support of BBB's services to the public. 

BBB accreditation does not mean that the charity's programs or services have been evaluated or endorsed by BBB or that BBB has made a determination as to the charity's competency in performing services.


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 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.

Standards Legend

  • Meets Standards IconMeets Standards
  • Standards Not Met IconStandards Not Met
  • Did Not Disclose IconDid Not Disclose
  • Review in Progress IconReview in Progress
  • Unable to Verify IconUnable to Verify
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Standard 1: Board Oversight


Description:

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.

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Standard 2: Board Size


Description:

Soliciting organizations shall have a board of directors with a minimum of five voting members.

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Standard 3: Board Meetings


Description:

An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

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Standard 4: Board Compensation


Description:

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.

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Standard 5: Conflict of Interest


Description:

No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

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Standard 6: Effectiveness Policy


Description:

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.

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Standard 7: Effectiveness Report


Description:

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.

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Standard 8: Program Expenses


Description:

Spend at least 65% of its total expenses on program activities.

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Standard 9: Fund Raising Expenses


Description:

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.

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Standard 10: Accumulating Funds


Description:

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.

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Standard 11: Audit Report


Description:

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.

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Standard 12: Detailed Expense Breakdown


Description:

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.

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Standard 13: Accurate Expense Reporting


Description:

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.

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Standard 14: Budget Plan


Description:

Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

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Standard 15: Truthful Materials


Description:

Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

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Standard 16: Annual Report


Description:

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.

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Standard 17: Website Disclosures


Description:

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.

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Standard 18: Donor Privacy


Description:

Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

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Standard 19: Cause Marketing Disclosures


Description:

Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

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Standard 20: Complaints


Description:

Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.