Week 4

This week in class we looked at a 990 tax form for Junior Achievement. I did not expect the forms to be so complicated, but as I analyzed it, I realized they aren’t that hard to understand. It’s important to look at an organization’s tax forms to really see how they are managing your donations and how they are putting them to use. When I researched Feeding Children Everywhere, I found that their total expenses for 2012 were $1,233,482 and their total revenue was $1,529,592, meaning they didn’t have debt. This also meant that their program ratio was 93%, which I think is a pretty high percentage of money going to the actual cause. Their total assets at the end of the year were $356,564. Also, their management ratio was 6.19% – they only paid their management $77,000 out of a $1,000,000+ revenue. Their fundraising ratio and cost to raise $1 were 0% and 0$, which means that they spend nothing to raise money. I guess they get donations through word of mouth. I thought it was strange that at the bottom of the form it said, “Executive director is married to a director in the organization.” That seemed a little random to me, but I guess it’s to provide full disclosure and discourage corruption.

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