| Judging a Charity |
How effective is a charity? This is a question that each and every person who supports a charity must ask. But, how do you judge effectiveness?
Do you look at how many of the charities target population are served (in Variety's case the number of children served)? Do you look at how impactful the service was? Do you look at how effective the charity was with the money they have?
These are all questions that you should consider. They are just a few of the questions that watchdog agencies (independent organizations who monitor charity activity), donors and the community at large use to judge the work that a charity performs.
Variety may not serve more children than some other charities. In fact, we do not even come close. However, the children, and families, whose lives we do touch are impacted in ways beyond measure. Whether it is the gift of a wheelchair, walker, adaptive bicycle or other durable medical good, or the opportunity for a special needs child to see a first-run family friendly feature in a movie theatre with his/her peers, the effect of Variety cannot be measured.
As for the final question, Variety the Children's Charity of Texas is by far one of the most effective charities in Texas. How do you know?
Most industry standards call for charities to spend no less than 70% of their federally reported Form 990 revenue (a 990 is a nonprofit tax return, and the revenue figure presented on the 990 equates to total revenue minus direct expenses for fundraising programs, events and any costs of goods sold) on programmatic services. There are some watchdog agencies that call for 75%.
We are very pleased to announce that for Variety's 2007-2008 Fiscal Year; more than 88.5% of our federally reported 990 revenue was spent on programmatic services. That is more than 10% of the most stringent industry standards. And, it was not an anomaly. Our previous fiscal year came in at 84.62%.
We hope you share in the pride that we have in achieving these standards, and impart on you the importance we place on using your donor dollars to the maximum benefit for the children we serve.
Full details will be released about the new figures next week. |