Charity Review

  • Issued: January 2013
  • Expires: January 2015

Children's Health Fund

Standards Not Met

  • 4
  • 16

212-535-9400

215 West 125th Street, Suite 301
New York, NY 10027

http://www.childrenshealthfund.org

212-535-9400

215 West 125th Street, Suite 301
New York, NY 10027

http://www.childrenshealthfund.org

Standards Not Met

This organization does not meet one or more of the 20 Standards for Charity Accountability. Click the conclusions section below for more information.

Standards For Charity Accountability

Governance

  1. Board Oversight

    Oversight of Operations and Staff: Standard 1

    Description
    Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

    The organization meets this standard.

  2. Board Size

    Number of Board Members: Standard 2

    Description
    Soliciting organizations shall have a board of directors with a minimum of five voting members.

    The organization meets this standard.

  3. Board Meetings

    Frequency and Attendance of Board Meetings: Standard 3

    Description
    An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

    The organization meets this standard.

  4. Board Compensation

    Compensated Board Members: Standard 4

    Description
    Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

    CHF does not meet this Standard because:

    • Two members out of the 15 member board of directors (13%) are paid staff.

  5. Conflict of Interest

    Conflict of Interest: Standard 5

    Description
    No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

    The organization meets this standard.

Measuring Effectiveness

  1. Effectiveness Policy

    Board Policy on Effectiveness: Standard 6

    Description
    Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

    The organization meets this standard.

  2. Effectiveness Report

    Board Approval of Written Report on Effectiveness: Standard 7

    Description
    Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

    The organization meets this standard.

Finances

  1. Program Expenses

    Program Service Expense Ratio: Standard 8

    Description
    Spend at least 65% of its total expenses on program activities.

    The organization meets this standard.

  2. Fund Raising Expenses

    Fund Raising Expense Ratio: Standard 9

    Description
    Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

    The organization meets this standard.

  3. Accumulating Funds

    Ending Net Assets: Standard 10

    Description
    Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

    The organization meets this standard.

  4. Audit Report

    Financial Statements: Standard 11

    Description
    Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

    The organization meets this standard.

  5. Detailed Expense Breakdown

    Detailed Functional Breakdown of Expenses: Standard 12

    Description
    Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

    The organization meets this standard.

  6. Accurate Expense Reporting

    Accuracy of Expenses in Financial Statements: Standard 13

    Description
    Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

    The organization meets this standard.

  7. Budget Plan

    Budget: Standard 14

    Description
    Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

    The organization meets this standard.

Fund Raising & Info

  1. Truthful Materials

    Misleading Appeals: Standard 15

    Description
    Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

    The organization meets this standard.

  2. Annual Report

    Annual Report: Standard 16

    Description
    Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

    CHF does not meet this standard because:

    • The organization does not have an annual report covering activities conducted in 2011.

  3. Website Disclosures

    Web Site Disclosures: Standard 17

    Description
    Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

    The organization meets this standard.

  4. Donor Privacy

    Privacy for Written Appeals & Internet Privacy: Standard 18

    Description
    Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

    The organization meets this standard.

  5. Cause Marketing Disclosures

    Cause Related Marketing: Standard 19

    Description
    Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

    The organization meets this standard.

  6. Complaints

    Complaints: Standard 20

    Description
    Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

    The organization meets this standard.

Conclusion

Children's Health Fund does not meet the following 2 Standards for Charity Accountability:

Standard 4 - Compensated Board Members
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

CHF does not meet this Standard because:

  • Two members out of the 15 member board of directors (13%) are paid staff.

Standard 16 - Annual Report
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

CHF does not meet this standard because:

  • The organization does not have an annual report covering activities conducted in 2011.

Children's Health Fund meets the remaining 18 Standards for Charity Accountability.

Purpose

  • Year, State Incorporated

    1987, New York

  • Stated Purpose

    "to provide health care to the nation's most medically underserved children through the development and support of comprehensive primary care programs, reducing the impact of public health crises on children and promoting the well-being of children."

Programs

CHF's NY flagship program, affiliated with Montefiore Medical Center, provides health care to medically underserved children in New York City. The organization reports that, in 2011, 10,383 patients were served during 55,032 health care visits. New York Children's Health Projects mobile program visits homeless shelters. A mobile dental program was launched in May 2011. The South Bronx Health Center's Center for Child Health and Resiliency addresses the medical, emotional, and developmental needs of children and parents. The organization reports that the Harlem Children's Health Project, affiliated with NY Presbyterian Hospital, provided 10,582 health care and mental health visits to children in Harlem. CHF's National Network develops and supports 24 programs in medically disadvantaged rural and urban communities. The network's 50 mobile clinics and community and school based health centers partner with academic medical centers of federally qualified health centers. In 2011, CHF reports that nearly 84,000 children and family members received services through over 250,000 health care visits at more than 200 community based sites. CHF also provides advocacy for low-income and homeless children. The organization works with federal, state, and local lawmakers as well as private sector advocates including child health advocacy groups, health policy experts, and health providers. CHF develops emergency preparedness plans for the treatment of children during public health crises, public health surveys measuring the trauma of specific health crises, and advocates for the needs of children post disaster.

For the year ended December 31, 2011, CHF's program expenses were:

New York programs 6,638,672
Public health and crisis response 943,935
National programs 3,564,337
Education 1,399,699
Total Program Expenses: $12,546,643

Governance & Staff

  • Chief Executive

    Irwin Redlener, M.D., Co-Founder and President

  • Compensation*

    $242,962

  • Chair of the Board

    Robert F. Tannenhauser

  • Chair's Profession / Business Affiliation

    Managing Member and CEO of BoeFly LLC

  • Board Size

    15

  • Paid Staff Size

    54

*2011 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Fund Raising

Method(s) Used:

Direct mail, special events, print advertisements, grant proposals, Internet, planned giving, cause-related marketing, and membership appeals.
Fund raising costs were 9% of related contributions. (Related contributions, which totaled $15,696,708, are donations received as a result of fund raising activities.)

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on CHF's audited financial statements for the year ended December 31, 2011.

Source of Funds
Contributions and grants: corporations 5,867,595
Contributions and grants: individuals 4,250,877
Contributions and grants: foundations 4,201,693
Special events revenues, net 1,043,043
Government grants 333,500
Interest and dividends 302,154
Change in value of beneficial interest in lead trust 8,908
Loss on disposal of assets -22,079
Net loss on investments -362,581
Total Income $15,623,110
  • Programs: 82%
  • Fundraising: 10%
  • Administrative: 8%
Total Income $15,623,110
Program expenses 12,546,643
Fundraising expenses $1,490,607
Administrative expenses $1,192,829
Other expenses $0
Total expenses: $15,230,079
Income in Excess of Expenses 393,031
Beginning Net Assets 8,537,605
Ending Net Assets 8,930,636
Total Liabilities 10,268,140
Total Assets 19,198,776

Note: According to audited financial statements for the year ended December 31, 2011, CHF received in-kind income of $102,908 for medical supplies and equipment.

An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.