Irondog K9 International

Irondog K9 International does not meet the following 8 Standards for Charity Accountability:

Standard 1 (Oversight of Operations and Staff)
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.

IDK9 does not meet this Standard because its board of directors does not:

• Review the performance of the Chief Executive Officer at least once every two years.

Standard 2 (Number of Board Members)
Soliciting organizations shall have a board of directors with a minimum of five voting members.

IDK9 does not meet this Standard because:

• The organization has three voting members of the board.

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.

IDK9 does not meet this Standard because:

• Two members out of the three member board of directors (67%) are directly compensated.
• The chair of the board of directors is compensated as the owner of a related management company.
• The treasurer of the board of directors is compensated directly.

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.

IDK9 does not meet this Standard because:

• Although the organization has produced a written February 2024 effectiveness assessment report, the report did not include recommendations for future actions.

Standard 8 (Program Service Expense Ratio)
Spend at least 65% of its total expenses on program activities.

IDK9 does not meet this Standard because:

• According to the organization's 2023 audited financial statements, IDK9 spent $837,537 or 61% of its total expenses on programs.

Standard 13 (Accuracy of Expenses in Financial Statements)
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.

IDK9 does not meet this Standard because, in the BBB Wise Giving Alliance's opinion, the 2023 audit does not provide an accurate presentation of IDK9’s fundraising and program services expenses.

IDK9 provided a copy of its audited financial statements for the year ended December 31, 2023, which included an auditor's opinion that the statements were prepared in accordance with Generally Accepted Accounting Principles (GAAP). According to the audit, IDK9 incurred joint costs of $1,033,876 for informational materials and activities that include fundraising expenses. Of this amount, $598,627 was allocated to program expenses, $430,700 was allocated to fundraising expenses, and $4,549 was allocated to administrative expenses.

Based on an evaluation of IDK9’s appeals, BBB WGA disagrees with the allocation of $598,627 of direct mail appeals to program expenses. Some appeals did not include a “call to action” for the recipient to do something that fulfills the organization’s programmatic purpose other than make a donation. Such a call to action is required by AICPA Statement of Position 98-2 for any appeal to be joint cost allocated.

Depending on how one recognizes IDK9’s direct mail expenses, its fundraising costs could be higher than the 35% of related contributions reported by IDK9 and its program services could be lower than the 61% of total expenses reported by IDK9. Since BBB WGA disagrees with IDK9’s joint cost allocations, we are unable to determine whether the organization meets Standard 8, which addresses program expenses.

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.

IDK9 does not meet this Standard because:

• The organization utilizes dollar bill appeals to convince recipients to make a donation. It is BBB WGA’s position that, by mailing an appeal that includes a dollar with the request to return it to the charity, the charity places undue pressure on the recipient to donate.

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.

IDK9 does not meet this Standard because the 2024 annual report did not include:

• A 2024 financial summary.

Irondog K9 International meets the remaining 12 Standards for Charity Accountability.