United American Patriots does not meet the following 1 Standards for Charity Accountability:
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.
UAP does not meet this Standard because, in BBB WGA's opinion, the 2019 audit report does not provide an accurate presentation of UAP's fund raising and program service expenses.
UAP provided a copy of its audited financial statements for the year ended December 31, 2019, which included an auditor's opinion that the statements were prepared in accordance with Generally Accepted Accounting Principles (GAAP). According to the organization’s audit, UAP incurred joint costs of $1,911,307 for informational materials and activities that include fund raising expenses. Of this amount, $1,166,284 was allocated to program service expenses, $499,836 was allocated to fund raising expenses, and $245,187 was allocated to administrative expenses.
Based on an evaluation of sample UAP appeals, BBB WGA disagrees with the allocation of $1,166,284 of direct mail appeals to the program service category. BBB WGA is of the opinion that the contents of the direct mail appeals do not substantiate 61% of the cost of direct mail appeals to program service expenses. Some of the appeals reviewed did not include a "call to action” asking the appeal recipient to do something that will help further the organization's cause, other than make a donation. Such a call to action is required by AICPA’s Statement of Position 98-2 in order for an appeal to be eligible for joint cost allocation.
Depending on how one recognizes UAP's direct mail expenses, its fund raising costs could be higher than the 22% of related contributions that was reported by UAP and its program services could be lower than 71% of total expenses also reported by UAP. Since BBB WGA disagrees with UAP's joint cost allocations, we are unable to determine whether the organization meets Standards 8 and 9, which address fundraising and program expenses.
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:
8
9
United American Patriots meets the remaining 17 Standards for Charity Accountability.
United American Patriots (UAP) reports that it works to generate public awareness, fund legal representation, and provide reintegration support for our Nation's Warriors. In addition the organization reports that they work to preserve Rights, defend defenders, and enhance communities via implementation of communication, sponsorship of teams, and financing of individual needs. Over half ($1,843,445 or 56%) of UAP's program activities are carried out in conjunction with fund raising appeals.
For the year ended December 31, 2019, United American Patriots's program expenses were:
| Program expenses |
$2,452,211 |
| Total Program Expenses: |
$2,452,211 |
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Chief Executive
David Gurfein, Chief Executive Officer
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Compensation*
$75,994
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Chair of the Board
David Gurfein
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Chair's Profession / Business Affiliation
Chief Executive Officer, United American Patriots
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Board Size
6
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Paid Staff Size
4
*2018 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: As reported by the organization, David Gurfein became Chief Executive Officer 4/28/2018.
Method(s) Used:
Direct mail appeals, Internet, Invitations to fund raising events, Membership appeals, Planned giving arrangements
UAP incurred joint costs of $1,911,307 for informational materials and activities that included fund raising materials. Of those costs $1,166,284 was allocated to program expenses, $499,836 was allocated to fund raising expenses, and $245,187 was allocated to administrative expenses.
Since the Alliance disagrees with UAP’s allocation of fund raising expenses, we are unable to verify the ratio of fund raising expenses to related contributions. See the Conclusions section of this report for more information.
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 United American Patriots's audited financial statements for the year ended December 31, 2019.
| Source of Funds |
| Individual and business contributions |
$2,868,425 |
| Interest income |
$6,790 |
| Total Income |
$2,875,215 |
- Programs: 71%
- Fundraising: 19%
- Administrative: 10%
| Total Income |
$2,875,215 |
| Program expenses |
$2,452,211 |
| Fundraising expenses |
$628,033 |
| Administrative expenses |
$378,707 |
| Other expenses |
$0 |
| Total expenses: |
$3,458,951 |
| Income in Excess of Expenses |
$-583,736 |
| Beginning Net Assets |
$625,716 |
| Other Changes In Net Assets |
$0 |
| Ending Net Assets |
$41,980 |
| Total Liabilities |
$247,790 |
| Total Assets |
$289,770 |