SIM USA does not meet the following 6 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.
SIM USA does not meet this Standard because its board of directors does not:
- Receive information about the financial arrangements made with outside fundraising firms and/or consultants hired during the year ended September 30, 2018.
Standard 3 (Frequency and Attendance of Board Meetings)
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.
SIM USA does not meet this Standard because:
- The board of directors held two meetings during the year ended September 30, 2019.
Standard 6 (Board Policy on Effectiveness)
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.
SIM USA does not meet this Standard because:
- The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization?s performance and effectiveness and determining future actions required to achieve its mission.
Standard 12 (Detailed Functional Breakdown of Expenses)
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.
SIM USA does not meet this Standard because, in the organization's audited financial statements for the year ended September 30, 2018, the detailed functional breakdown of expenses:
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.
SIM USA does not meet this Standard because, when the organization provided 2020 budget information, it indicated that the budget:
- Did not identify total projected program service expenses.
- Did not identify total projected fundraising 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.
SIM USA does not meet this Standard because the 2018 annual report did not include:
- A roster of the organization's board of directors.
- Total end of year net assets.
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:
13
SIM USA meets the remaining 13 Standards for Charity Accountability.
SIM USA reports that it shares the Gospel of Christ in more than 70 countries. The organization works with Christ-centered churches locally and globally to facilitate and expand its cross-cultural ministry. SIM USA's missionaries also partners with specialized missions in Bible translation, radio outreach, community development, medicine, HIV/AIDS ministry, aviation, and church planters. In 2018, the organization states that it sent out 56 new missionaries and offered 3 one-week missionary training and preparation courses for 149 mission workers. Some ($8,487,170 or 19%) of SIM USA's programs are conducted in conjunction with informational materials that include fundraising appeals.
For the year ended September 30, 2018, SIM USA's program expenses were:
| Church growth and evangelism |
$13,413,564 |
| Grants to other SIM ministries |
$11,220,157 |
| Education ministry |
$6,420,377 |
| Relief and rehabilitation |
$6,186,360 |
| Service |
$2,606,766 |
| Home ministry |
$2,026,149 |
| Media and translation ministry |
$1,786,371 |
| Total Program Expenses: |
$43,659,744 |
*2019 compensation, as reported by the organization, includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Door-to-door appeals, Grant proposals, Internet, Invitations to fund raising events, Planned giving arrangements
SIM USA incurred joint costs of $10,581,092 for informational materials and activities that included fund raising materials. Of those costs $8,487,170 was allocated to program expenses, $1,431,183 was allocated to administrative expenses, and $662,739 was allocated to fundraising expenses.
Fundraising costs were 5% of related contributions. (Related contributions, which totaled $52,237,621 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 SIM USA's audited financial statements - combined for the year ended September 30, 2018.
| Source of Funds |
| Contributions |
$52,237,621 |
| Rental, sales, and other |
$1,595,097 |
| Interest and dividend income |
$502,797 |
| Investment gains, net |
$174,027 |
| Total Income |
$54,509,542 |
- Programs: 79%
- Administrative: 17%
- Fundraising: 4%
| Total Income |
$54,509,542 |
| Program expenses |
$43,659,744 |
| Fundraising expenses |
$2,756,690 |
| Administrative expenses |
$8,918,112 |
| Other expenses |
$0 |
| Total expenses: |
$55,334,546 |
| Income in Excess of Expenses |
$-825,004 |
| Beginning Net Assets |
$37,205,569 |
| Other Changes In Net Assets |
$-149,185 |
| Ending Net Assets |
$36,231,380 |
| Total Liabilities |
$18,943,388 |
| Total Assets |
$55,174,768 |
Note: As noted in the above financial section, "other changes in net assets" refers to a change in value of annuities and trusts.