Kiwanis Children's Fund meets the 20 Standards for Charity Accountability.
BBB WGA Comment
In finding that KCF meets Standard 8, which calls for a minimum of 65% of total expenses being spent on program activities, and Standard 9, which calls for a maximum of 35% of related contributions being spent on fundraising activities, BBB WGA considered that, although the audited financial statements for the fiscal year ended September 30, 2020, report total program expenses of $2,182,251 or 48% of total expenses, and total fundraising expenses of $1,123,900, or 57% of related contributions, the organization's expenses were significantly impacted by COVID-19 restrictions. As stated by the charity ". . .the KCF board of trustees instituted an emergency spending authority in early 2020, which temporarily halted our budgeted grant disbursements and other program expenditures. Under normal circumstances, KCF's program expenses would have been significantly higher. . .Fundraising expenses actually declined slightly that year but the decrease in contributions had the bigger impact on KCF's ability to meet Standard 9 in 2019-20. . ."
Kiwanis Children's Fund (KCF) serves as the fundraising and grant making arm of Kiwanis International. KCF awards grants to support the following Kiwanis causes: Kiwanis Service Leadership Programs for youth, teens and adults with disabilities; Kiwanis club and district service projects benefiting children, particularly in the areas of health/nutrition and education/literacy; the elimination of maternal and neonatal tetanus; and the elimination of iodine deficiency disorders.
For the year ended September 30, 2020, Kiwanis Children's Fund's program expenses were:
| Kiwanis Children's Fund |
$1,714,943 |
| Eliminate |
$467,308 |
| Total Program Expenses: |
$2,182,251 |
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Chief Executive
Stan D. Soderstrom, Executive Director
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Compensation*
$306,305
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Chair of the Board
Norman Velnes
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Chair's Profession / Business Affiliation
Fundraising Consultant, The Velnes Group
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Board Size
17
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Paid Staff Size
14
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Internet, Invitations to fund raising events, Membership appeals, Planned giving arrangements, Print advertisements (newspapers, magazines, etc.), Telephone appeals, Cause- related marketing (affinity credit cards, consumer product sales, etc.)
Fundraising costs were 57% of related contributions. (Related contributions, which totaled $1,987,111, 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 Kiwanis Children's Fund's audited financial statements - consolidated for the year ended September 30, 2020.
| Source of Funds |
| Contributions |
$1,985,503 |
| Realized and unrealized gains on investments |
$1,362,451 |
| Investment income, net |
$256,579 |
| Grant income |
$1,608 |
| Other income |
$440 |
| Total Income |
$3,606,581 |
- Programs: 48%
- Administrative: 28%
- Fundraising: 24%
| Total Income |
$3,606,581 |
| Program expenses |
$2,182,251 |
| Fundraising expenses |
$1,123,900 |
| Administrative expenses |
$1,243,656 |
| Other expenses |
$0 |
| Total expenses: |
$4,549,807 |
| Income in Excess of Expenses |
$-943,226 |
| Beginning Net Assets |
$24,534,535 |
| Other Changes In Net Assets |
$-5,746,246 |
| Ending Net Assets |
$17,845,062 |
| Total Liabilities |
$738,837 |
| Total Assets |
$18,583,899 |
Note 1: In the financial section above, "other changes in net assets" partially refers to change in value of annuities payable (-$6,326). The remaining amount of (-$5,739,920) is due to currency exchange and bad debt losses. The audited financial statements include this ba debt loss (which represents the writeoff of unpaid pledges to KCF) and currency exchange as expenses rather than other changes in net assets. BBB WGA is listing them as other changes in net assets because, in our opinion, allocating these changes to the fundraising category provides an incomplete picture of the charity's actual fundraising activities, artificially increasing the fundraising ratio when those asset changes do not represent actual resources spent on fundraising during the year. According to the organization, "currency exchange and bad debt losses were included as expenses, rather than as other changes in net assets, because our auditors have determined these two items are normal operating activities for KCF according to FASB. Currency exchange is a standard expense, due to the many contributions KCF receives each year from non-U.S. donors. The bad debt is the write-off of unpaid pledges to The Eliminate Project. . ."
Note 2: In finding that KCF meets Standard 8, which calls for a minimum of 65% of total expenses being spent on program activities, and Standard 9, which calls for a maximum of 35% of related contributions being spent on fundraising activities, BBB WGA considered that, although the audited financial statements for the fiscal year ended September 30, 2020, report total program expenses of $2,182,251 or 48% of total expenses, and total fundraising expenses of $1,123,900 or 57% of related contributions, the organization's expenses were significantly impacted by COVID-19 restrictions. As stated by the charity ". . .the KCF board of trustees instituted an emergency spending authority in early 2020, which temporarily halted our budgeted grant disbursements and other programs expenditures. Under normal circumstances, KCF's program expenses would have been significantly higher. . .Fundraising expenses actually declined slightly that year but the decrease in contributions had the bigger impact on KCF's ability to meet Standard 9 in 2019-20..."