Charity Review

Issued: July 2016 Expires: July 2018

Charity Seal Holder

Madison Square Boys & Girls Club

Meets Standards
 
(212) 760-9600 733 Third Ave, Floor 2, New York NY 10017-3204 www.madisonsquare.org
  1. Conclusions
  2. Purpose
  3. Programs
  4. Governance & Staff
  5. Fund Raising
  6. Tax Status
  7. Financial
Conclusions

Madison Square Boys & Girls Club meets the 20 Standards for Charity Accountability.

Purpose

To save and enhance the lives of New York City boys and girls who by reason of economic and/or social factors are most in need of our services. 

Incorporated: 1920 in NY

Programs

Madison Square Boys and Girls Club programs aim to develop competencies, instill positive values, and increase opportunities for youth to participate fully in society, often making a critical difference between a troubled and stagnant future and one of promise and achievement. Our three priority outcomes are Academic Success, Good Character & Citizenship and Healthy Lifestyles. 

Academic Success: The goal of Madison's education programming is to provide a seamless framework of enhanced services that ensures that members become engaged in learning as early as possible, and continue to receive much-needed resources, guidance, and support as they progress academically and socially from early childhood to late adolescence. Our educational programs complement regular school-day activities, enhance academic performance, foster positive study habits, and encourage self-discipline, keeping youth on track as they transition through school and on to college. Specific programs include: Power Hour, Explorers Academy, BE GREAT: Graduate, Project Graduate, and the Technology Program.

Good Character & Citizenship: Madison delivers comprehensive youth development services with the goals of members become involved in their communities and demonstrating strong character. Through Torch Club (ages 10 to 12) and Keystone Club (ages 13 to 18), youth engage in community service and leadership opportunities that inspire strong character development, instill a sense of personal and community responsibility while helping build effective, positive strategies for responding to conflict. 

Healthy Lifestyles: Madison's Healthy Lifestyles programming aims to educate youth on the importance of a healthy lifestyle and to cultivate their capacity to engage in positive behaviors that nurture their well-being. Our programs aim to instill in our members positive decision-making that will have a tangible impact on their physical, social, and emotional development. SMART Girls and Passport to Manhood, are gender-specific initiatives aimed at instilling healthy attitudes and lifestyles to youth (age 10 to 18) at a critical stage of their development. 

Governance & Staff

Board Chair: Mr. Victor F Ganzi, Co-Chair Business Affiliation: The Hearst Corporation, Former President and CEO

Board Chair: Mr. Michael S. Geltzeiler, Co-Chair Business Affiliation: The ADT Corporation, Chief Financial Officer

Board Chair: Mr. Barry Bregman, President Business Affiliation: Korn Ferry, Senior Client Partner

CEO: Mr. Joseph Patuleia Compensation:* $369,401 Business Affiliation: Madison Square Boys and Girls Club

Board Size: 53

Staff: 175

* 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 Grant Proposals Internet Appeals Planned Giving Arrangements Other

% of Related Contributions on Fundraising: 5.21%

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 Madison Square Boys & Girls Club Audited Financial Statements for the fiscal year ending Wednesday, September 30, 2015.

Source of Funds
Contributions $15,095,694
Special Events (includes in-kind contributions of $211, 972) $2,936,047
Direct cost of special events ($793,027)
Income from trusts $471,224
Change in value of beneficial interests in trusts ($591,918)
United Way of New York City $589
New York State Office of Alcoholism and Substance Abuse Services $741,261
New York City Department of Youth and Community Development $312,038
New York State CACFP/Food Program $360,432
Boys and Girls Club of America - Office of Juvenile Delinquency Program $73,606
Camping/program fees $191,559
Membership dues $13,659
Investment Income (loss) (Note 8) $361,355
Rental income $57,450
Miscellaneous $0
New York City Economic Development Corporation $443,903
Other government grants $21,467
Gain (loss) on sale/disposal of fixed assets (Note 3) $789,833
Total Income: $20,485,172
 
Fusion Chart
 
Program Expenses: $7,278,108
Fundraising Expenses: $939,982
Administrative Expenses: $834,909
Total Expenses: $9,052,999
 
Income in Excess of Expenses: $11,432,173
 
Beginning Net Assets: $76,429,688
Ending Net Assets: $87,861,861
Total Liabilities: $3,104,474
Total Assets: $90,966,335


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This report is not to be used for fund raising or promotional purposes.

Standards Legend

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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.