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dclaudew

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Soles4Souls
November 6, 2011

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.

The Great!

I've personally experienced the results of this organization in...

Never

Ways to make it better...

If I had to make changes to this organization, I would...

Add a requried time extension to the Form 990 submission, redo the fundraiser math in Part VIII, explain how the cash expenditures were significantly above the cash contributions, explain how the large expenses could go to so many contractors that not a single one billed for more than $100k, and explain the reason for the $9m growth in retained assets.

MY ROLE:
Professional with expertise in this field & Not involved other than reading their Form 990.

Review from Guidestar
Junior Achievement
May 5, 2011

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.

The Great!

I've personally experienced the results of this organization in...

email

Ways to make it better...

If I had to make changes to this organization, I would...

correct the Form 990 to move non-program expenses into management and fundraising expenses.

MY ROLE:
Volunteer & Applied as a volunteer accountant.

Review from Guidestar