French Heritage Society does not meet the following 3 Standards for Charity Accountability:
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.
FHS does not meet this Standard because:
- The organization has not completed an effectiveness assessment in the last two years.
Standard 14 (Budget)
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
FHS does not meet this Standard because, when the organization provided 2022 budget information, it indicated that the budget:
- Did not identify total projected program service expenses, broken down by major program category (cultural exchange and educational programs, membership services, and restoration projects).
- Did not identify total projected fundraising expenses.
- Did not identify total projected administrative expenses.
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.
FHS does not meet this Standard because the 2019 annual report did not include:
- A roster of the board of directors.
- 2019 financial information.
The BBB Wise Giving Alliance requested but did not receive complete information from the organization and is unable to verify the organization's compliance with the following Standard(s) for Charity Accountability:
1
15
French Heritage Society meets the remaining 15 Standards for Charity Accountability.
BBB WGA Comment
According to the organization, in January 2021, FHS discovered that a former executive had misappropriated funds in excess of $290,000 over time between 2016-2021. The Executive Committee of the Board of Directors authorized and directed that the former executive be placed on administrative leave without pay, pending further investigation. In February 2021, an independent forensic accounting firm was retained to perform a forensic investigation into the matter. Also in February 2021, the employment of the former executive was terminated for cause. In May 2021, the firm found that the failure of the organization to follow its own internal control policies contributed to the ability of the former executive to perpetrate the misappropriations and to the failure to detect the misappropriations earlier. In response to the report, FHS has implemented internal controls, pressed charges with law enforcement authorities againse the former executive to attempt recovery of the misappropriated funds, and changed independent auditors.
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Year, State Incorporated
1981, NY
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Affiliates
American Friends of L?Abbaye de Lagrasse, LLC
AMERICAN FRIENDS OF THE SAINT OMER FOUNDATION LLC
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Stated Purpose
"to preserve the French architectural, cultural and historical heritage and environment and foster educational and cultural exchange between France and the United States."
French Heritage Society (FHS) raises funds for restoration, preservation, and cultural grants. The organization transmits and safeguards the skills, knowledge, and heritage through transatlantic educational programs for students, architects, artisans, art connoisseurs and collectors. FHS fosters the Franco-American friendship and cross-cultural exchange through select tours in France and the United States, lectures, conferences, galas, and other events on both sides of the Atlantic. The organization has a network of chapters in the United States and one in France.
For the year ended December 31, 2019, French Heritage Society's program expenses were:
Cultural exchange and educational programs |
$633,807 |
Restoration projects |
$406,045 |
Membership services |
$265,832 |
Total Program Expenses: |
$1,305,684 |
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Chief Executive
Jennifer Herlein, Executive Director
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Compensation*
$198,573
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Chair of the Board
Elizabeth Stribling
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Chair's Profession / Business Affiliation
President, Stribling & Associates, Ltd.
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Board Size
28
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Paid Staff Size
0
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Membership appeals, Planned giving arrangements, Telephone appeals
Fundraising costs were 6% of related contributions. (Related contributions, which totaled $3,993,054, 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 French Heritage Society's audited financial statements - consolidated for the year ended December 31, 2019.
Source of Funds |
Contributions |
$3,120,175 |
Special and other fundraising events, net |
$494,439 |
In-kind contributions |
$287,331 |
Program revenue |
$187,450 |
Membership dues |
$91,109 |
Interest income |
$16,445 |
Publication income |
$9,000 |
Grants administrative fees income |
$8,662 |
Total Income |
$4,214,611 |
- Programs: 70%
- Administrative: 17%
- Fundraising: 13%
Total Income |
$4,214,611 |
Program expenses |
$1,305,684 |
Fundraising expenses |
$247,322 |
Administrative expenses |
$335,749 |
Other expenses |
$0 |
Total expenses: |
$1,888,755 |
Income in Excess of Expenses |
$2,325,856 |
Beginning Net Assets |
$1,037,059 |
Other Changes In Net Assets |
$-7,144 |
Ending Net Assets |
$3,355,771 |
Total Liabilities |
$296,170 |
Total Assets |
$3,651,941 |
Note 1: According to FHS' 2019 audited financial statements, the organization received in-kind contributions totaling $287,331 in the form of auction items ($168,156), use of facility ($70,766), event goods and catering ($33,409), and legal services ($15,000).
Note 2: In the financial section above, "other changes in net assets" refers to foreign-currency translation losses.