My Nonprofit Reviews
CharityWatch.org
Review for Dedication And Everlasting Love To Animals, Glendale, CA, USA
CharityWatch Investigates: Millions in Missing Donations and a $6.7 Million Legal Judgment Against Large Animal Sanctuary
This animal rescue charity reports granting millions in donations to an organization that shares the same 3 officers or board members. That charity does not report receiving them. Where did they go? CharityWatch analyzed the tax filings of D.E.L.T.A. Rescue and its two related organizations and identified some troubling governance and financial reporting issues, including $2.5 million in donations that are unaccounted for.
Our full report can be read by copying and pasting this link into a browser: https://blog.charitywatch.org/charitywatch-investigates-millions-in-missing-donations-and-a-6-7-million-legal-judgment-against-large-animal-sanctuary/
Review for Folds Of Honor Foundation, Owasso, OK, USA
While Folds of Honor Foundation is a highly efficient charity that receives a top rating from CharityWatch based on its 2023 financial reporting, CharityWatch has noted discrepancies between its marketing claims that it spends 91% on direct scholarships and what our analysis of its audited financial statements and tax fillings reveal.
CharityWatch's detailed report can be read by copying and pasting the below URL into a browser, or by visiting our website at charitywatch.org and searching our blog for Folds of Honor Foundation.
https://blog.charitywatch.org/folds-of-honor-foundation-does-not-spend-91-of-donations-on-direct-scholarships/
Review for Castleton Ranch Horse Rescue Inc, Valley Center, CA, USA
CharityWatch Rating
For our complete review visit: https://www.charitywatch.org/charities/castleton-ranch-horse-rescue
CharityWatch conducted an in-depth analysis of Castleton Ranch Horse Rescue’s audited financial statements and IRS tax Form 990 (Tax ID#11-3731839) for its fiscal year ended December 31, 2023. Based on this analysis, CharityWatch assigned the charity a rating of C-minus on our “A+” to “F” rating scale for spending 55% of its cash expenses on programs, 45% on overhead, and for spending $43 to raise each $100 of cash support.
Fundraising
According to the Castleton Ranch Horse Rescue audit of December 31, 2023 (Note A, Summary of Significant Accounting Policies, Concentrations):
“…During the year ended December 31, 2023, Castleton derived $1,450,943 or 75% of its revenues through its direct mail campaign conducted by Fundraising Strategies…Any significant interruptions or impairment of campaign revenues would have a significant adverse impact on Castleton.”
Of the charity’s $1,914,443 total reported cash expenses, the charity reports spending $736,992 on “Direct Mail Expense” and $63,283 on “Professional fundraising services.”
Governance & Transparency
Castleton Ranch Horse Rescue meets CharityWatch’s Transparency benchmark but fails our Governance benchmark based on our analysis of its financial reporting for fiscal year 2023.
CharityWatch evaluates certain criteria related to a charity’s Governance and Transparency. Donors may want to consider a charity’s willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
Governance Benchmarks: Charities required to file a Form 990 with the IRS are asked to answer basic questions each year about their governing body and management, governance policies, and disclosure practices. CharityWatch reviews a charity’s tax form to see if it reports having certain policies in place, a sufficiently large and independent governing body, and other basic governance information that serve as standard benchmarks for large charities of national scope or interest. Charities must pass all nine benchmarks in order to meet CharityWatch’s overall benchmark for Governance.
Castleton Ranch Horse Rescue fails CharityWatch’s Governance benchmark due to not having a sufficiently large or independent governing body. The charity reports that its board of directors is comprised of only 3 people, of which only 1 is considered “independent.” To meet CharityWatch’s governance benchmark, a charity’s board must be comprised of at least 5 voting members with majority independence to help ensure that the board can meet its fiduciary duties to make decisions that are in the best interest of the charity.
Transparency Benchmark: Indicates whether a charity has met CharityWatch’s Transparency benchmarks for the fiscal year analyzed. To meet transparency benchmarks, a charity must post a complete copy of its most current, independent audited financial statements on its public website. It must provide complete copies of its IRS Form(s) 990 to CharityWatch upon request and may be required to answer questions related to its financial reporting and/or provide additional documentation if such information is necessary for CharityWatch to complete a meaningful evaluation.
Related Party Disclosures
According to the Castleton Ranch Horse Rescue audit of December 31, 2023 (Note H, Related Party Disclosures):
“The president of Castleton, Lisa Thomas, is in charge of all activities and transactions. During the course of the year ended December 31, 2023, Castleton compensated Ms. Thomas for work performed.
In addition, all directors reside at the Valley Center Ranch location and have corporate vehicles and phones available for personal use.”
Review for The Kindness Ranch Animal Sanctuary, HARTVILLE, WY, USA
Visit https://blog.charitywatch.org/kindness-ranch-animal-sanctuary-charitywatch-rating/ for more information.
CharityWatch analyzed the 2023 IRS tax Form 990 of Kindness Ranch and immediately noted that the charity, which reports taking in $1.9 million in public contributions that year, did not have an audit of its financial statements conducted for its 2023 reporting year. This means that Kindness Ranch fails CharityWatch’s Transparency benchmark. The lack of an independent audit is a red flag for a few additional reasons:
*Charity tax Forms 990 are not audited. Charities that fail to have an audit of their financial statements conducted annually put the public in a position to trust that what the charity is reporting about itself in its tax filings is accurate, consistent, comparable, and complete, which is often not the case.
*It is unusual for a charity of this size to not have an audit of its finances conducted annually. Charities of this size and within this cause area are more likely to solicit donations nationally. If they do so, they are required to be registered in about 41 jurisdictions throughout the United States, with about half of these states requiring a charity to submit a copy of its audited financial statements annually as a condition of being allowed to solicit donations within those states’ borders.
*Kindness Ranch Animal Sanctuary also fails CharityWatch’s benchmarks for Governance due to not having a sufficiently large board of directors and failing to maintain written conflict of interest, whistleblower, and document destruction and retention policies. Kindness Ranch not following these best practices amplifies CharityWatch’s concerns about its lack of an independent audit.
Financial Information
Kindness Ranch reports that it raised more than $1.9 million in donations in 2023, spending $449,084 to do so. This amount included $340,561 of "Direct Mailings [with postage]."
Given that the charity did not have an independent audit of its financial activities conducted in 2023, in the opinion of CharityWatch, it is not possible to make a reliable judgment as to whether or not Kindness Ranch is using its donations efficiently and responsibly based on its 2023 tax filing. The online aggregator website, Charity Navigator, which is not a watchdog organization and which relies only on charities’ self-reported tax filings when computing a charity’s program percentage, assigned Kindness Ranch 3 out of 4 stars, or an overall 78% rating, despite the significant concerns CharityWatch has identified and described here.
In its 2023 tax filing Kindness Ranch reports that its top three expenses consisted of “Other salaries and wages” of $529,696, all of which are reported as a program expense; “Insurance” of $245,488, all of which is reported as a program expense; and “All other expenses” of $456,463, of which $404,570 is reported as a program expense and $51,893 is reported as overhead. The charity reported “veterinarian fees” totaling $101,961 as a program expense. Included in reported fundraising expenses is $340,561 of “Direct mailings [with postage]; and $100,811 of “projects expense.”
More Feedback
If I had to make changes to this organization, I would...
Have an independent audit of its financial statements conducted by an independent Certified Public Accountant (CPA) annually and establish written conflict of interest, whistleblower, and document retention and destruction policies.
Thank you for taking the time to share your concerns. We value feedback and always appreciate the opportunity to address any misunderstandings, offering transparency about the work we do here at the sanctuary. Regarding Charity Navigator, we have encountered challenges in uploading the necessary documentation for a higher rating, despite our efforts. These documents, such as our Whistleblower, Conflict of Interest, and Document Retention policies, are in place and available. We would be happy to provide them to you or anyone else who requests them. While our Board of Directors is smaller compared to some organizations, they are extremely active, deeply engaged in governance, and play a significant role in fundraising. They are also in frequent communication with our Executive Director, ensuring strong oversight and support. (1/5)
We understand that your review expresses concern about our sanctuary, but we believe that the best way to resolve these matters is through direct communication rather than public criticism. Criticism that misrepresents the facts can harm not just our reputation but also the dedicated staff members who work tirelessly to care for our animals. Many of our full-time staff members have relocated to our remote Wyoming location, where they live on-site and are provided with housing, utilities, internet, and comprehensive medical and mental health benefits. This allows them to provide round-the-clock care for the animals, a responsibility we take seriously. (2/5)
We also want to emphasize that your review could unintentionally affect the animals in our care and future rescues. The stability and wellbeing of our staff are vital to ensuring that we continue to provide the best possible care to hundreds of retired research animals each year. Expenses towards optimal animal care includes fostering a strong, happy team which directly results in better outcomes for our animals. Years of dedication to our mission have given a new life to over 1,700 animals that got to experience a future outside of a lab. In terms of audits, we acknowledge that our rapid growth in recent years has required some adjustments in our administrative processes. We are currently working to secure independent financial audits on an annual basis and are committed to aligning with best practices for transparency moving forward. (3/5)
Regarding Wyoming’s regulatory environment, we believe our location provides important benefits, both for the animals and our staff. The more affordable property and proximity to the Denver adoption community allow us to continue our mission sustainably and successfully, with countless animals finding new homes after decompressing at our peaceful sanctuary. Our thousand acres provides enough space to our larger animals as well, given that we house over 30 barn animals, including several horses and pigs. (4/5)
Lastly, we are proud of the work we do, and the many success stories and positive testimonials from adopters reflect our commitment to high standards in animal welfare. We invite you to reach out directly to us for further dialogue, as we believe in open communication and the opportunity to address concerns in a constructive manner. Kindness Ranch remains dedicated to providing exceptional care for the animals who depend on us, and we strive to operate with transparency, integrity, and compassion. (5/5)
