My Nonprofit Reviews
Review for Soles4Souls, Old Hickory, TN, USA
A agree with the other posters that the accounting seems very odd.
1. To its benefit, contributions are incredible, doubling every year. Any NPO would be proud of S4S' record.
2. In Part VIII, cash contributions (line 1c) and fundraising expenses not including line 1c (line 8a) are exactly the same amount, $1,145,217. What is the chance of that being accurate? Zero, if you believe Schedule G, which gives a different accounting of fundraising activities.
3. Some of the noncash contributions must be monetized. Cash contributions in Part VIII are $1.1m yet Part IX salaries are over $2m and legal is $214k. There doesn't seem to be enough cashflow to pay the expenses unless some of the donated item are being sold to pay salaries and expenses. Plus, net assets in Part X grew by more than $9m, so clearly all the donations are not flowing to the poor and needy.
For example, the noncash contributions from the rich are said to be $71.7m while grants to the needy were just $60.6m (still a very impressive number, even if substantially less than the contributions).
4. Part VII lists no independent contractors making more than $100k. This is only possible if all the work is purposefully divided among many contractors to conceal names. Legal expenses are $214k, advertising $810k, occupancy $181k, distribution $413k, and direct mail $267k, yet, again, we are told that none of these large categories had more than $100k to a single vendor.
5. Schedule O says the Directors reviewed the Form 990. There are enough reporting and math mistakes on this Form 990 to make that statement unlikely. At a minimum, the Directors should wonder where is the attached request for an extension, since this Form 990 is late.
Review for Junior Achievement, Atlanta, GA, USA
I read the Form 990 for FY09. There are three programs listed. One of these, the Hispanic Outreach, is run by employees and seems to be correctly accounted as Program Expenses. The other two programs are reported as 100% volunteer run. Yet despite the programs being run by 100% volunteers, there are substantial Program Expenses for salaries, pension plan, other employee benefits, payroll taxes, accounting, advertising, office expenses, IT, occupancy, travel, depreciation, and insurance. To me, all these are either Management or Fundraising Expenses, not Program Expenses, if run by volunteers.