Charity Review

Issued: November 2017 Expires: November 2019

Charity Seal Holder

Boys & Girls Clubs of Metro Richmond

Meets Standards
 
(804) 359-5250 5511 Staples Mill Road, Suite 301, Richmond VA 23228 www.bgcmr.org
  1. Conclusions
  2. Purpose
  3. Programs
  4. Governance & Staff
  5. Fund Raising
  6. Tax Status
  7. Financial
Conclusions

Boys & Girls Clubs of Metro Richmond meets the 20 Standards for Charity Accountability.

Purpose

Mission: To empower young people, especially those from disadvantaged circumstances, to succeed in life.

Incorporated: 1953 in VA

Programs

Mission:

Boys & Girls Clubs of Metro Richmond’s mission has always been to create opportunity for young people from disadvantaged circumstances, and give them confidence in their natural abilities to take full control of their lives.  BGCMR’s goal is that each member will succeed in life; this begins with the foundation of graduating from high school with a solid plan for the future, whether that's a four-year college, a two-year college, or technical training. 

 

History:

BGCMR’s kids don't lack the desire to succeed; they lack opportunities. They live in neighborhoods where violence is too common, high school graduation is too rare, and unemployment or underemployment is all they know.  Since 1953, Boys & Girls Clubs of Metro Richmond has been changing these realities: one kid, one relationship at a time. We provide kids with a second home – a safe place to engage in structured activities that offer mentoring relationships with caring adults who help youth make good decisions and avoid risky behaviors.

 

Today:

Currently, BGCMR operates 5 Clubs, strategically located to reach the most vulnerable youth.  With five locations in four specific neighborhoods: Richmond's East End, Northside, Southside, and in Petersburg, BGCMR is a safe, stable place where 1,200 young people come each year to define their futures.  So far this year, 87% of BGCMR’s members live in households with income under $40,000; 72% in households with less than $25,000 annually.

 

During the 2016-2017 fiscal year, BGCMR’s clubs successfully delivered 133 programs in which 1,043 of Richmond and Petersburg’s youth participated.  BGCMR’s programs, coupled with its strong and supportive staff, help change the odds for these young people.

 

 

For the fiscal year ended June 30, 2016, Boys & Girls Clubs of Metro Richmond’s program expenses were:

 

 

Youth Services:                                  $2,265,783

Total Program Expenses:                $2,265,783

Governance & Staff

Board Chair: Mr. Jody Begley Business Affiliation: Altria

CEO: Mr. Todd McFarlane, President & CEO

Board Size: 15

Staff: 53

BGCMR employs 17 full-time & 36 part-time staff members.

Fund Raising
Method(s) used: Direct Mail Appeals Invitations to Fundraising Events Grant Proposals Internet Appeals Planned Giving Arrangements

% of Related Contributions on Fundraising: 12.33%

Fundraising costs of $579,540 were 12.33% of related contributions. (Related contributions, which totaled $4,698,830, are donations received as a result of fundraising activities.)

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 Boys & Girls Clubs of Metro Richmond's Audited Financial Statements for the fiscal year ending Thursday, June 30, 2016.

Source of Funds
Contributions $2,918,032
Contributions, in-kind $204,357
United Way services $102,500
Grants $1,473,941
Membership dues $11,056
Program services fees $76,907
Change in value of beneficial interest in charitable lead trust $48,284
Change in value of beneficial interest in assets held by The Community Foundation ($34,308)
Investment return $13,410
Gain (loss) on disposal of property and equipment ($50)
Miscellaneous income $102,707
Total Income: $4,916,836
 
Fusion Chart
 
Program Expenses: $2,265,783
Fundraising Expenses: $579,540
Administrative Expenses: $678,843
Total Expenses: $3,524,166
 
Income in Excess of Expenses: $1,392,670
 
Beginning Net Assets: $6,895,959
Ending Net Assets: $8,288,629
Total Liabilities: $243,699
Total Assets: $8,532,328

From the organization: “BGCMR is currently in the midst of a comprehensive capital campaign which accounts for the divergences seen in revenue vs. expenses. A portion of the revenue for the comprehensive capital campaign is donor-restricted for bricks and mortar. The restricted funds will start being spent when construction begins.”

BBB comment: Net and total assets reported in this table include $4,079,570 in restricted funds. The restricted campaign revenues/funds noted in the organization’s comment would be included in that figure. Assets classified as restricted have donor-imposed stipulations and may only be used for the specific purpose(s) for which they were given.


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

Standards Legend

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  • Standards Not Met IconStandards Not Met
  • Did Not Disclose IconDid Not Disclose
  • Review in Progress IconReview in Progress
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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.