CHARITY REVIEW
Issued:March 2018
Expires:March 2020
East Texas Cornerstone Assistance Network

Standards Not Met

  • 6
  • 7
  • 8
  • 11
  • 16
  • 17
  • 18
  • 3

CEO: Scott Harrison, Executive Director
Chair Person: Dale Pond
Staff Size: 9 full time and 4 part time
Tax Status: 501c3

(903) 597-5334
200 N Beckham Ave Tyler, TX 75702-5918
http://www.etcornerstone.org

Standards For Charity Accountability

Governance

  1. Board Oversight

    Oversight of Operations and Staff: Standard 1

    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, fundraising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

    The organization meets this standard.

  2. Board Size

    Number of Board Members: Standard 2

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

    The organization meets this standard.

  3. Board Meetings

    Frequency and Attendance of Board Meetings: Standard 3

    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.

    Unable to Verify this Standard

  4. Board Compensation

    Compensated Board Members: Standard 4

    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.

    The organization meets this standard.

  5. Conflict of Interest

    Conflict of Interest: Standard 5

    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.

    The organization meets this standard.

Measuring Effectiveness

  1. Effectiveness Policy

    Board Policy on Effectiveness: Standard 6

    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.

    The organization does not meet this Standard because:

    This Standard is not met due to because the organization does not have a board policy on assessing organizational performance and effectiveness.

  2. Effectiveness Report

    Board Approval of Written Report on Effectiveness: Standard 7

    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.

    The organization does not meet this Standard because:

    This Standard is not met because the organization does not have a written report provided to the board covering its organizational performance and effectiveness assessment.

Finances

  1. Program Expenses

    Program Service Expense Ratio: Standard 8

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

    The organization does not meet this Standard because:

    This Standard is not met because the organization's total program expenses are 64.3% of total expenses.

  2. Fundraising Expenses

    Fundraising Expense Ratio: Standard 9

    Description
    Spending should be no more than 35% of related contributions on fundraising. Related contributions include donations, legacies, and other gifts received as a result of fundraising efforts.

    The organization meets this standard.

  3. Accumulating Funds

    Ending Net Assets: Standard 10

    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.

    The organization meets this standard.

  4. Audit Report

    Financial Statements: Standard 11

    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.

    The organization does not meet this Standard because:

    This Standard is not met because the organization's total revenue was over $500,000 but a full audit of its financial statements was not completed.

  5. Detailed Expense Breakdown

    Detailed Functional Breakdown of Expenses: Standard 12

    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, fundraising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

    The organization meets this standard.

  6. Accurate Expense Reporting

    Accuracy of Expenses in Financial Statements: Standard 13

    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 fundraising expenses or otherwise understate the amount a charity spends on fundraising, and/or overstate the amount it spends on programs will not meet this standard.

    The organization meets this standard.

  7. Budget Plan

    Budget: Standard 14

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

    The organization meets this standard.

Fundraising & Info

  1. Truthful Materials

    Misleading Appeals: Standard 15

    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.

    The organization meets this standard.

  2. Annual Report

    Annual Report: Standard 16

    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, fundraising and administrative categories as in the financial statements, and (iii) ending net assets.

    The organization does not meet this Standard because:

    This Standard is not met because the organization did not send the BBB its most recent annual report.

  3. Website Disclosures

    Web Site Disclosures: Standard 17

    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.

    The organization does not meet this Standard because:

    This Standard is not met because the organization does not have a link to its most recent IRS Form 990 on its website.

  4. Donor Privacy

    Privacy for Written Appeals & Internet Privacy: Standard 18

    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.

    The organization does not meet this Standard because:

    This Standard is not met because the organization does not have a clear and prominent link on its website to its online privacy policy.

  5. Cause Marketing Disclosures

    Cause Related Marketing: Standard 19

    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).

    The organization meets this standard.

  6. Complaints

    Complaints: Standard 20

    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 fundraising practices, privacy policy violations and/or other issues.

    The organization meets this standard.

East Texas Cornerstone Assistance Network does not meet the following standard(s): 6, 7, 8, 11, 16, 17, 18

Standard 6-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 charity does not meet the Standard because:

  • This Standard is not met due to because the organization does not have a board policy on assessing organizational performance and effectiveness.

Standard 7-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 charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a written report provided to the board covering its organizational performance and effectiveness assessment.

Standard 8-Spend at least 65% of its total expenses on program activities.

This charity does not meet the Standard because:

  • This Standard is not met because the organization's total program expenses are 64.3% of total expenses.

Standard 11-Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles.

This charity does not meet the Standard because:

  • This Standard is not met because the organization's total revenue was over $500,000 but a full audit of its financial statements was not completed.

Standard 16-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 charity does not meet the Standard because:

  • This Standard is not met because the organization did not send the BBB its most recent annual report.

Standard 17-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 charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a link to its most recent IRS Form 990 on its website.

Standard 18-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 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.

This charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a clear and prominent link on its website to its online privacy policy.
Year, State Incorporated:

Stated Purpose

"to partner, in Christian love, with churches, businesses and other nonprofit agencies to assist people in poverty with life transformation."

It provides immediate employment, job training, affordable clothing, rental assistance and connections to resources for people on the high end of poverty.

Chief ExecutiveScott Harrison, Executive Director
Compensation$77,157.00
Chair of the BoardDale Pond
Chair's Profession / Business AffiliationMinister
Board Size7
Paid Staff Size9 full time and 4 part time

Fund raising methods include:
Direct Mail Appeals
Grant Proposals
and Internet.

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.

The following information is based on charity financial source.

The following is based on East Texas Cornerstone Assistance Network Audited Financial Statements for the fiscal year ending Saturday, December 31, 2016

Source of Funds
Contributions and Grants$453,422.00
Program Service Revenue$234,384.00
Total Income$687,806.00
Program expenses$312,312.00
Fundraising expenses$6,000.00
Administrative expenses$167,619.00
Total expenses$485,931.00
Income in Excess of Expenses$201,875.00
Beginning Net Assets$98,128.00
Ending Net Assets$52,466.00
Total Liabilities$1,464.00
Total Assets$53,930.00

East Texas Cornerstone Assistance Network does not meet the following standard(s): 6, 7, 8, 11, 16, 17, 18

Standard 6-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 charity does not meet the Standard because:

  • This Standard is not met due to because the organization does not have a board policy on assessing organizational performance and effectiveness.

Standard 7-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 charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a written report provided to the board covering its organizational performance and effectiveness assessment.

Standard 8-Spend at least 65% of its total expenses on program activities.

This charity does not meet the Standard because:

  • This Standard is not met because the organization's total program expenses are 64.3% of total expenses.

Standard 11-Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles.

This charity does not meet the Standard because:

  • This Standard is not met because the organization's total revenue was over $500,000 but a full audit of its financial statements was not completed.

Standard 16-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 charity does not meet the Standard because:

  • This Standard is not met because the organization did not send the BBB its most recent annual report.

Standard 17-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 charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a link to its most recent IRS Form 990 on its website.

Standard 18-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 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.

This charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a clear and prominent link on its website to its online privacy policy.
Year, State Incorporated:

Stated Purpose

"to partner, in Christian love, with churches, businesses and other nonprofit agencies to assist people in poverty with life transformation."

It provides immediate employment, job training, affordable clothing, rental assistance and connections to resources for people on the high end of poverty.

Chief ExecutiveScott Harrison, Executive Director
Compensation$77,157.00
Chair of the BoardDale Pond
Chair's Profession / Business AffiliationMinister
Board Size7
Paid Staff Size9 full time and 4 part time

Fund raising methods include:
Direct Mail Appeals
Grant Proposals
and Internet.

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.

The following information is based on charity financial source.

The following is based on East Texas Cornerstone Assistance Network Audited Financial Statements for the fiscal year ending Saturday, December 31, 2016

Source of Funds
Contributions and Grants$453,422.00
Program Service Revenue$234,384.00
Total Income$687,806.00
Program expenses$312,312.00
Fundraising expenses$6,000.00
Administrative expenses$167,619.00
Total expenses$485,931.00
Income in Excess of Expenses$201,875.00
Beginning Net Assets$98,128.00
Ending Net Assets$52,466.00
Total Liabilities$1,464.00
Total Assets$53,930.00

East Texas Cornerstone Assistance Network does not meet the following standard(s): 6, 7, 8, 11, 16, 17, 18

Standard 6-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 charity does not meet the Standard because:

  • This Standard is not met due to because the organization does not have a board policy on assessing organizational performance and effectiveness.

Standard 7-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 charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a written report provided to the board covering its organizational performance and effectiveness assessment.

Standard 8-Spend at least 65% of its total expenses on program activities.

This charity does not meet the Standard because:

  • This Standard is not met because the organization's total program expenses are 64.3% of total expenses.

Standard 11-Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles.

This charity does not meet the Standard because:

  • This Standard is not met because the organization's total revenue was over $500,000 but a full audit of its financial statements was not completed.

Standard 16-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 charity does not meet the Standard because:

  • This Standard is not met because the organization did not send the BBB its most recent annual report.

Standard 17-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 charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a link to its most recent IRS Form 990 on its website.

Standard 18-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 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.

This charity does not meet the Standard because:

  • This Standard is not met because the organization does not have a clear and prominent link on its website to its online privacy policy.
Year, State Incorporated:

Stated Purpose

"to partner, in Christian love, with churches, businesses and other nonprofit agencies to assist people in poverty with life transformation."

It provides immediate employment, job training, affordable clothing, rental assistance and connections to resources for people on the high end of poverty.
Chief ExecutiveScott Harrison, Executive Director
Compensation$77,157.00
Chair of the BoardDale Pond
Chair's Profession / Business AffiliationMinister
Board Size7
Paid Staff Size9 full time and 4 part time

Fund raising methods include:
Direct Mail Appeals
Grant Proposals
and Internet.

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.

The following information is based on charity financial source.

The following is based on East Texas Cornerstone Assistance Network Audited Financial Statements for the fiscal year ending Saturday, December 31, 2016

Source of Funds
Contributions and Grants$453,422.00
Program Service Revenue$234,384.00
Total Income$687,806.00
Program expenses$312,312.00
Fundraising expenses$6,000.00
Administrative expenses$167,619.00
Total expenses$485,931.00
Income in Excess of Expenses$201,875.00
Beginning Net Assets$98,128.00
Ending Net Assets$52,466.00
Total Liabilities$1,464.00
Total Assets$53,930.00

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 fundraising or promotional purposes.

Standards Legend

  • Meets Standards
  • Standards Not Met
  • Did Not Disclose
  • Review In Progress
  • Unable to Verify

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BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.