Operation Smile
Standards For Charity Accountability
Governance
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Board Oversight
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Board Size
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Board Meetings
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Board Compensation
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Conflict of Interest
Measuring Effectiveness
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Effectiveness Policy
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Effectiveness Report
Finances
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Program Expenses
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Fundraising Expenses
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Accumulating Funds
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Audit Report
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Detailed Expense Breakdown
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Accurate Expense Reporting
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Budget Plan
Fundraising & Info
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Truthful Materials
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Annual Report
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Website Disclosures
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Donor Privacy
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Cause Marketing Disclosures
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Complaints
Operation Smile does not meet the following 1 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.
Operation Smile does not meet this Standard because:
- Three members out of the nine member board of directors (33%) are compensated either directly or indirectly. Two members are compensated directly and one member is compensated indirectly as a relative of paid staff.
Operation Smile meets the remaining 19 Standards for Charity Accountability.
Complaints
Number of complaints processed in the last 36 months: 4
The organization addressed the complaint issues brought to its attention: 4
(These complaints involved mailing list removal).
Stated Purpose:
"to create solutions that deliver safe cleft lip and cleft palate surgery to people where it's needed most."
Year, State Incorporated:
1987, VA
Operation Smile offers cleft lip and cleft palate surgeries free of charge for children and adults. The organization reports that it works in coordination with international governments and ministries of health to address systemic barriers within health systems that prevent surgical care from being delivered or received. To do so, Operation Smile engages in partnerships to advance health care delivery, trains local medical professionals to provide surgical care for patients in their communities, donates medical equipment and supplies, and increases access to surgical care through patient recruitment and advocacy initiatives.
For the year ended June 30, 2023, Operation Smile's program expenses were:
Medical programs: $76,621,028
Education and sustainability: $30,634,552
Total Program Expenses: $107,255,580
Chief Executive
Kathleen S. Magee, Co-Founder, President, and Chief Executive Officer
Compensation*
$219,806
Chair of the Board
Robert James Boyd, III
Chair's Profession / Business Affiliation
Chairman and President, Boyd Steamship Corporation
Board Size
9
Paid Staff Size
271
*2024 compensation, as reported by the organization, includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: Former Chief Executive Officer and Co-Founder, Dr. William P. Magee, received $439,612 in compensation during the year ended June 30, 2023.
Method(s) Used:
Direct mail appeals, Television, Grant proposals, Internet, Direct mail appeals, Radio, Telemarketing, Corporate solicitation
Operation Smile incurred joint costs of $18,903,701 for informational materials and activities that included fundraising materials. Of those costs $12,814,732 was allocated to fundraising expenses, $4,755,812 was allocated to program expenses, and $1,333,157 was allocated to administrative expenses.
Fundraising costs were 15% of related contributions. (Related contributions, which totaled $149,850,459, are donations received as a result of fundraising activities.)
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.
The following information is based on Operation Smile's audited financial statements for the year ended June 30, 2023.
Source of Funds
| In-kind contributions | $53,809,837 |
| Contributions | $96,040,622 |
| Program service revenue | $366,665 |
| Total Income | $150,217,124 |
Programs: 78% Fundraising: 17% Administrative: 7%
| Total Income | $150,217,124 |
| Total expenses: | $136,988,230 |
| Program expenses | $107,255,580 |
| Fundraising expenses | $22,895,751 |
| Administrative expenses | $9,314,923 |
| Other expenses | $-2,478,024 |
| Income in Excess of Expenses | $13,228,894 |
| Beginning Net Assets | $101,437,165 |
| Other Changes In Net Assets | $1,771 |
| Ending Net Assets | $114,664,288 |
| Total Liabilities | $9,076,421 |
| Total Assets | $123,740,709 |
Note 1: As noted in the above financial section, "other changes in net assets" refers to foreign currency transaction losses, net.
Note 2: According to the organization's audited financial statements - consolidated - for the year ended June 30, 2023, Operation Smile received in-kind contributions totaling $53,809,837 in the form of medical services ($51,617,970) and medical supplies ($2,1291,867).
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 International Association of Better Business Bureaus.
This report is not to be used for fundraising or promotional purposes.
RELATED CONTENT
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Meets Standards
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Standards Not Met
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Did Not Disclose
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Review in Progress
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Unable to Verify
Report completed by:
BBB Wise Giving Alliance