Charity Review

Issued: October 2017 Expires: October 2019

Sam Houston Area Council, Boy Scouts of America

Accredited Charity
Meets Standards
 
2225 North Loop West, Houston TX 77008-1311
  1. Conclusions
  2. Purpose
  3. Programs
  4. Governance & Staff
  5. Fund Raising
  6. Tax Status
  7. Financial
Conclusions

Sam Houston Area Council, Boy Scouts of America meets the 20 Standards for Charity Accountability.

Purpose

The mission of the Boy Scouts of America is to prepare young people to make ethical and moral choices over their lifetimes by instilling in them the values of the Scout Oath and Law.

Incorporated: 1914 in TX

Also Known As: Boy Scouts of America, Sam Houston Area

Programs

Sam Houston Area Council, Boys Scouts of America offers the following programs: Tiger Cubs for boys in the first grade: Boy and parent or guardian seek, discover, and share. Cub Scouts for boys 7-10: Program focuses on motto, "Do Your Best." Cubs experience fun activities that develop personal and social skills while earning advancement and recognition. Boy Scouts for boys 11-17: Positive adult role models combine outdoor programs with learning opportunities through the merit badge program. Benefits include the development of leadership skills, developing a boy's peer group, community service, rank advancement, and citizenship and positive value system. Venturing for young men and women 14-20: a youth development program providing positive experiences to help young people mature and to prepare them to become responsible and caring adults with an emphasis on team building and high adventure. Exploring is a worksite-based program for young men and women 14-20 years of age designed to develop career experience and critical thinking skills. Learning for Life is a school-based program for male and female students in grades prekindergarten – 12th grade designed to meet the growing demand for character education programs in schools. Sam Houston Area Council, Boys Scouts of America offers the following programs: Tiger Cubs for boys in the first grade: Boy and parent or guardian seek, discover, and share. Cub Scouts for boys 7-10: Program focuses on motto, "Do Your Best." Cubs experience fun activities that develop personal and social skills while earning advancement and recognition. Boy Scouts for boys 11-17: Positive adult role models combine outdoor programs with learning opportunities through the merit badge program. Benefits include the development of leadership skills, developing a boy's peer group, community service, rank advancement, and citizenship and positive value system. Venturing for young men and women 14-20: a youth development program providing positive experiences to help young people mature and to prepare them to become responsible and caring adults with an emphasis on team building and high adventure. Exploring is a worksite-based program for young men and women 14-20 years of age designed to develop career experience and critical thinking skills. Learning for Life is a school-based program for male and female students in grades prekindergarten – 12th grade designed to meet the growing demand for character education programs in schools. Sam Houston Area Council accomplishments during 2013 include serving a total of 58,031 youth, 19,503 registered adult volunteers leading 1,714 Cub Scouts Packs, Boy Scout Troops and Venturing Crews; 39,905 campers at the Council’s five camps for a total of 99,687 days camped; 20,592 Cub Scout ranks earned; 8,624 Boy Scout ranks earned; 1,097 Boy Scouts attained rank of Eagle Scout; 800,000 estimated community service hours provided.

Governance & Staff

CEO: Mr. Thomas O. Varnell, CEO/Scout Executive

Board Chair: Mr. L.E. Simmons, President Business Affiliation: SCF Partners

Board Size: 78

Staff: 452

Fund Raising
Method(s) used: Direct Mail Appeals Telephone Appeals Invitations to Fundraising Events Grant Proposals Internet Appeals Planned Giving Arrangements Other Solicitations for Used Cars

% of Related Contributions on Fundraising: 19.17%

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 Sam Houston Area Council, Boy Scouts of America's Consolidated Audited Financial Statements for the fiscal year ending Saturday, December 31, 2016.

Source of Funds
Revenues $7,552,627
Net assets released from restrictions $4,595,043
Total Direct Support $3,975,301
Total Indirect Support $973,184
Reclassinvestment income ($773,290)
Total Income: $16,322,865
 
Fusion Chart
 
Program Expenses: $11,795,850
Fundraising Expenses: $948,389
Administrative Expenses: $754,028
Other Expenses: $82,028
Total Expenses: $13,580,295
 
Income in Excess of Expenses: $2,742,570
 
Beginning Net Assets: $140,031,055
Ending Net Assets: $142,931,576
Total Liabilities: $4,447,243
Total Assets: $147,378,819


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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.