Charity Review
Issued: August 2016
Expires: August 2018
Broadway Cares/Equity Fights AIDS, Inc.
Meets Standards
(212) 840-0770
165 West 46th Street, Suite 1300, New York NY 10036-2508
www.broadwaycares.org
Standards for Charity Accountability
- Conclusions
- Purpose
- Programs
- Governance & Staff
- Fund Raising
- Tax Status
- Financial
Conclusions
Purpose
To mobilize the resources of the entertainment industry to raise funds to provide grants to AIDS service organizations and promote awareness of HIV/AIDS issues.
Incorporated: 1987 in NY
Programs
Dancers Responding to AIDS, founded in 1991 by former Paul Taylor Dance Company members Denise Roberts Hurlin and Hernando Cortez, is a program of Broadway Cares/Equity Fights AIDS, one of the nation's leading industry-based, nonprofit AIDS fundraising and grant-making organizations. By drawing upon the talents, resources and generosity of the American theatre and dance communities, since 1988 Broadway Cares has raised more than $285 million for essential services for people with AIDS and other critical illnesses across the United States.
Outreach Program: To provide information, increase awareness, and promote public support for men, women and families living with and/or affected by HIV/AIDS. These programs are nationwide and promote red ribbon retail items, theatre community outreach activities, school and college theatre program outreach, and dance studio and convention program outreach. These programs reach thousands of young adults
Governance & Staff
Board Chair: Mr. Paul Libin, Exectutive Vice President, Jujamcyn Theaters
CEO: Mr. Tom Viola, Executive Director
Compensation:* $202,000
Board Size: 53
Staff: 48
* Compensation includes annual salary and, if applicable, benefit plans, expense accounts and other allowances.
Fund Raising
Method(s) used:
Direct Mail Appeals
Invitations to Fundraising Events
Print Advertisements (Newspapers, Magazines, etc.)
Grant Proposals
Internet Appeals
Planned Giving Arrangements
% of Related Contributions on Fundraising: 11.11%
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 Broadway Cares/Equity Fights AIDS, Inc. Audited Financial Statements for the fiscal year ending Wednesday, September 30, 2015.
Source of Funds
Contribution
$18,767,600
Special Events
$2,128,883
Merchandise Sales
$438,539
Donated Goods and Services
$265,794
Income Interest
$664
Realized Losses on Sale of Assets
($595)
Total Income:
$21,600,885
Program Expenses:
$16,712,098
Fundraising Expenses:
$2,399,932
Administrative Expenses:
$2,099,961
Total Expenses:
$21,211,991
Income in Excess of Expenses:
$388,894
Beginning Net Assets:
($610,360)
Ending Net Assets:
($112,501)
Total Liabilities:
$3,320,310
Total Assets:
$3,207,809
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.
Close
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.
Close
Standard 2: Board Size
Description:
Soliciting organizations shall have a board of directors with a minimum of five voting members.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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.
Close
Standard 8: Program Expenses
Description:
Spend at least 65% of its total expenses on program activities.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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.
Close
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).
Close
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.
