preview

Analysis Of Bobbi And The Strays

Decent Essays
Open Document

Bobbi and the Strays is a not-for-profit organization dealing with animal welfare. The mission of the organization is to provide humane care and service to all orphaned, stray, abused and special needs cats or dogs. The field research focuses on expenses of the organization. The Better Business Bureau sets standards for charitable organizations to up hold, the following is an overview of standards dealing with expenses: • Standard 11 requires the organization’s annual financial statements have to be prepared in accordance with Generally Accepted Accounting Principles: o If total annual gross income exceeds $500,000 these statements have to be audited o If the annual gross income is less than $500,000 it is sufficient enough the statements …show more content…

To meet this standard the following is applicable: o Has to report fund raising or administrative expenses, meaning the organization cannot claim a zero fund raising expense. o The fund raising expense should be properly recorded in the fund raising expense category of Form 990. In other words the organization should not place fund raising cost by displaying contributions “net” of these expenses. o Expenses associated with fund raising events, such as cost of invitations, mailing, promotions and consulting fees should be included in the fund raising expense category of the financial statements and Form 990.

When reviewing Form 990 for the years 2014 and 2015, Bobbi and the Strays met this standard since they properly recorded the breakdown of expenses in Part IX of Form 990 line 25(D). Expenses are broken down by the following categories: salary and wages, payroll tax, accounting, professional fund raising service, occupancy, insurance, and office/supplies.

• Standard 8 requires the organization spend at least 65% of its total expenses on program …show more content…

Since the organization spent less than 35% the standards requirement was met.

• Standard 12 requires a breakdown of expenses to be included in the financial statements. o The breakdown should be detailed, showing what portion of the expenses was allocated to program, fund raising and administrative activities. o If the organization has more than one major program service activity than the detailed breakdown of expenses should include a separate expense category for each major program. o If solely IRS Form 990 is provided by the organization, it is sufficient enough to fulfill this standard, only if the organization has one major program activity.

Bobbi and the Strays is an organization with only one major program activity, which is providing rescue and care for stray animals. According to the standard since Bobbi and the Stray has only one major program service activity than it is sufficient for the organization to provide IRS Form 990 and fulfill this standard. As previously mentioned in standard 11, Form 990 has included a breakdown of expenses in Part IX, which also fulfills the conditions under standard

Get Access
Related
Get Access