Charity Review

  • Issued: May 2013
  • Expires: May 2015

Omaha Home for Boys

Standards Not Met

  • 6
  • 7
  • 10
  • 16
  • 17

402-457-7000

4343 North 52nd Street
Omaha, NE 68104

http://www.omahahomeforboys.org

402-457-7000

4343 North 52nd Street
Omaha, NE 68104

http://www.omahahomeforboys.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.

    The organization meets this standard.

  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.

    OHFB does not meet this Standard because:

    • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

  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.

    OHFB does not meet this Standard because:

    • It has never completed an effectiveness assessment.

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.

    OHFB does not meet this Standard because:

    • According to its consolidated audited financial statements for the fiscal year ending October 31, 2012, the organization's total unrestricted net assets were $55,926,295, or 6 times the charity's total budgeted expenses of $8,628,550.

  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.

    OHFB does not meet this Standard because the 2011 annual report did not include:

    • Total expenses for each program in the same categories that appear in the organization’s financial statements (e.g. residential care, transitional living, educational services).
    • Total end of year net assets.

  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.

    OHFB does not meet this Standard because the organization's website, www.omahahomeforboys.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

    • End of year net assets.
    • Electronic access to the organization’s 2012 Form 990.

  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

Omaha Home for Boys does not meet the following 5 Standards for Charity Accountability:

Standard 6 - Board Policy on Effectiveness
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.

OHFB does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

Standard 7 - Board Approval of Written Report on Effectiveness
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.

OHFB does not meet this Standard because:

  • It has never completed an effectiveness assessment.

Standard 10 - Ending Net Assets
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.

OHFB does not meet this Standard because:

  • According to its consolidated audited financial statements for the fiscal year ending October 31, 2012, the organization's total unrestricted net assets were $55,926,295, or 6 times the charity's total budgeted expenses of $8,628,550.

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.

OHFB does not meet this Standard because the 2011 annual report did not include:

  • Total expenses for each program in the same categories that appear in the organization’s financial statements (e.g. residential care, transitional living, educational services).
  • Total end of year net assets.

Standard 17 - Web Site Disclosures
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.

OHFB does not meet this Standard because the organization's website, www.omahahomeforboys.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

  • End of year net assets.
  • Electronic access to the organization’s 2012 Form 990.

Omaha Home for Boys meets the remaining 15 Standards for Charity Accountability.

Purpose

  • Year, State Incorporated: 1920, Nebraska

  • Affiliates

    Cooper Village, Inc.

  • Stated Purpose

    "to be a resource in the community, offering services and stability while working in collaboration with schools, service providers and other nonprofit organizations to help youth and families be successful."

Programs

OHFB's Residential Care program is community based and utilizes a family environment and behaviorally-based curriculum to equip youth with positive skills and the ability to make good decisions when confronted with difficult choices. The program aims to provide at-risk youth ages 10 to 18 with a family structure, positive reinforcement, effective discipline and motivation to modify inappropriate behaviors and educational support to build proficiency, skills and success. Youth live on the main campus in cottages with house parents. The Transitional Living program is located on a separate campus called Jacobs' Place. The program, featuring two apartment buildings and a learning center, is a resource for up to 18 young women and men ages 17 to 21 who struggle with homelessness and lack of support and education because of a number of at-risk factors. The program provides a transitional living specialist for each youth, a skill-based structure, safe environment and educational support to help youth complete education, find employment and transition to independency in the community. The Independent Living program, called "Branching Out," offers service options to young men and women ages 14 to 24. It is designed to fill in service gaps, create structure and skill development and increase success rates for foster care and former foster care youth. The participants are at high risk for unemployment, homelessness, and incarceration. Throughout the program and its independent living specialists, youth are able to set goals and take steps to become independent and self-reliant. This includes an individualized development plan, goal-setting, educational support, job skills support, and safe, affordable housing in the community. The Educational Services program allows youth to attend public schools in the community to maintain academic support and credits. These services are provided to youth across all programs. This includes a day school, assessments and remedial support, credit recovery, high school diploma and GED support, enrichment and experiential learning, wellness and recreation, and advocacy within the schools they attend. The Training Services program provides parents with resources as well as involving them in their child's program goals to provide a support network for the youth.

For the fiscal year ended October 31, 2012, OHFB's program expenses were:

Residential care 3,294,852
Transitional living 804,201
Independent living 664,269
Educational services 997,224
Training services 208,205
Total Program Expenses: $5,968,751

Governance & Staff

  • Chief Executive

    Jeffrey R. Moran, President and CEO

  • Compensation*

    $92,255

  • Chair of the Board

    Daniel Wellendorf

  • Chair's Profession / Business Affiliation

    Vice-President, Builders Supply Company

  • Board Size

    23

  • Paid Staff Size

    110

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

Fund Raising

Method(s) Used:

Direct mail, special events, grant proposals, Internet appeals, and planned giving.
Fund raising costs were 16% of related contributions. (Related contributions, which totaled $6,000,398, 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 OHFB's consolidated audited financial statements for the fiscal year ended October 31, 2012.

Source of Funds
Contributions 6,000,398
Net realized and unrealized gains on investment 3,829,950
Interest and dividend income 1,260,094
Net program service fees 1,239,907
Gain on disposal of fixed assets 249,409
Rental income 199,225
Other 45,063
Total Income $12,824,046
  • Programs: 69%
  • Fundraising: 11%
  • Administrative: 20%
Total Income $12,824,046
Program expenses 5,968,751
Fundraising expenses $957,528
Administrative expenses $1,690,198
Total expenses: $8,616,477
Income in Excess of Expenses 4,207,569
Beginning Net Assets 76,443,860
Other Changes In Net Assets -435,477
Ending Net Assets 80,215,952
Total Liabilities 2,566,028
Total Assets 82,781,980

Note: In the financial section above, "other changes in net assets" refers to actuarial losses on annuity obligations and accrued retirement plan contributions.

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.