Charity Review

  • Issued: September 2013
  • Expires: September 2015

JOY for Our Youth / Kars4Kids

Standards Not Met

  • 15

877-527-7454

1805 Swarthmore
Lakewood, NJ 08701

http://www.givejoy.org

877-527-7454

1805 Swarthmore
Lakewood, NJ 08701

http://www.givejoy.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.

    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.

    JOY does not meet this standard because:

    In the Alliance’s opinion, the organization distributed solicitations in the past year that did not include a clear and prominent description of the charity’s programs or other pertinent facts. 

    The organization aired radio advertisements in 2012 that did not include any mention of organization’s programs.  However, these ads repeated the charity’s phone number more than five times and included a request for car donations. Longer versions of the ad also offered a vacation voucher as a premium.

    Sample e-mail appeals provided by the charity did not include a prominent and clear description of the charity’s programs.  Specifically, the appeal includes a one-sentence description of JOY’s programs at the end of a paragraph that includes required government disclosures.  The paragraph is in smaller type than the main copy of the appeal.

    In addition, the one-sentence description in the mentioned appeal states that the organization “provides for spiritual, emotional and practical needs of Jewish children from impoverished or dysfunctional families” but does not clarify that the vast majority of the charities program activities are carried out through a grant to an affiliated organization: Oorah.

    JOY also distributed email appeals that included a “Free Vacation Voucher,” but did not disclose on the appeal that the referenced vacation requires a $50 refundable deposit and optional participation in a timeshare presentation

    In response to this finding, JOY stated, in part:

    "Regarding our radio ads, you suggest that there is adequate time to include a short program description in the 30 or 60 seconds available to us. We are not averse to describing our programs. On the contrary, we wish we could give a full description of each of our programs; they are our strongest selling point...Yet we feel that our array of programs is just too extensive to condense into a one-line description.  We have a full suite of youth development programs and family and community services that can hardly be lumped together in one generic statement."

  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.

    The organization meets this standard.

  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

JOY for Our Youth / Kars4Kids does not meet the following 1 Standards for Charity Accountability:

Standard 15 - Misleading Appeals
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.

JOY does not meet this standard because:

In the Alliance’s opinion, the organization distributed solicitations in the past year that did not include a clear and prominent description of the charity’s programs or other pertinent facts. 

The organization aired radio advertisements in 2012 that did not include any mention of organization’s programs.  However, these ads repeated the charity’s phone number more than five times and included a request for car donations. Longer versions of the ad also offered a vacation voucher as a premium.

Sample e-mail appeals provided by the charity did not include a prominent and clear description of the charity’s programs.  Specifically, the appeal includes a one-sentence description of JOY’s programs at the end of a paragraph that includes required government disclosures.  The paragraph is in smaller type than the main copy of the appeal.

In addition, the one-sentence description in the mentioned appeal states that the organization “provides for spiritual, emotional and practical needs of Jewish children from impoverished or dysfunctional families” but does not clarify that the vast majority of the charities program activities are carried out through a grant to an affiliated organization: Oorah.

JOY also distributed email appeals that included a “Free Vacation Voucher,” but did not disclose on the appeal that the referenced vacation requires a $50 refundable deposit and optional participation in a timeshare presentation

In response to this finding, JOY stated, in part:

"Regarding our radio ads, you suggest that there is adequate time to include a short program description in the 30 or 60 seconds available to us. We are not averse to describing our programs. On the contrary, we wish we could give a full description of each of our programs; they are our strongest selling point...Yet we feel that our array of programs is just too extensive to condense into a one-line description.  We have a full suite of youth development programs and family and community services that can hardly be lumped together in one generic statement."

JOY for Our Youth / Kars4Kids meets the remaining 19 Standards for Charity Accountability.

Purpose

  • Year, State Incorporated

    2000, New Jersey

  • Also Known As

    Kars4Kids

  • Stated Purpose

    "the advancement of religious Jewish education for adults and children, to support various outreach programs for unaffiliated Jews, establish synagogues, promote religious practice and lifestyle, and the relieving of the poor, distressed and underprivileged including, financial assistance, scholarships, tuition assistance, and to benefit people by assisting them in establishing themselves into life."

Programs

JOY raises funds for its affiliate non-profit, Oorah. This affiliate seeks out families to enable their children to enroll in Jewish day schools or yeshivos, where they receive a full religious and secular education through high school. In addition, the affiliate provides adult education opportunities to parents and distributes Jewish ritual objects and other support.

Program expenses 20,338,680
Total Program Expenses: $20,338,680

Governance & Staff

  • Chief Executive

    Rabbi Eliyohu Mintz, Director

  • Compensation*

    $50,923

  • Chair of the Board

    Jeffrey Rubin

  • Chair's Profession / Business Affiliation

    Real Estate

  • Board Size

    5

  • Paid Staff Size

    49

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

Fund Raising

Method(s) Used:

Radio ads, e-mail appeals, billboards, direct mail, and print advertisements.
Fund raising costs were 34% of related contributions. (Related contributions, which totaled $29,976,125, 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 JOY's IRS Form 990 for the fiscal year ended December 31, 2011.

Source of Funds
Contributions 29,976,125
Investment income 48,000
Rent 254
Loss on sale of assets -8,939
Total Income $30,015,440
  • Programs: 65%
  • Fundraising: 32%
  • Administrative: 3%
Total Income $30,015,440
Program expenses 20,338,680
Fundraising expenses $10,047,925
Administrative expenses $804,673
Other expenses $0
Total expenses: $31,191,278
Expenses in Excess of Income (-1,175,838)
Beginning Net Assets 3,010,604
Ending Net Assets 1,834,766
Total Liabilities 3,709,960
Total Assets 5,544,726

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.